Adding value by turning a FROG into a 4th bedroom

[Colleen Fincham]

Afternoon,

My husband and I are living in a 3/2 with a FROG (no door, no closet) currently. Our exit strategy for the house is rent or rent to own, and eventually sell when the time is right. We bought a VA foreclosure in a low-middle class area, and are living in it (at least 2 years to avoid capital gains) while we add value via sweat equity. So far, the roof has been repaired, gutters (not previously existing) were added, landscaping, and some repairs around the front are completed. We are working on repairing the fence, and then the exterior will be finished in terms of curb appeal. Now we are moving onto the interior. Our question is:

Has anyone added a door and closet to a FROG to make it a 4th bedroom to drastically increase the value of the home? Any insight would be appreciated. I know we will have to check our restrictive covenants (no HOA where we live) to see if this is permitted. Do we also have to get permission from the city to do this since our taxes on the house will be affected by this project? Thanks in advance.

Colleen

[Aaron Lovett]

Some things to look out for. Septic vs. city sewer makes a difference as to whether another bedroom is even possible. If it doesn't spec, it won't count as a bedroom. City sewer is probably fine, but it's still something to check. (Otherwise, you woulnd't be able to advertise it as a 4br, regardless of the improvements.) Check local codes to say otherwise, but you'll likely need both a door and a window to count as a bedroom, possibly more. Don't count on "drastically" increasing value until you talk with a Realtor who can make a good ROI analysis for you.