Converting 2Bed/1Bath to 3Bed/1Bath?

[Satish Subramanian]

Brandon Turner always talks about one of his favorite things to do to add value to a rental is to convert a 2 Bed apartment with >1000 sq ft into 3 Bed. I’ve got a 1400 2-bed in Chicago (Jefferson Park) and I guess there is room to do so, but before i get started... Can someone explain the ROI numbers behind this? Also how do I go about doing this? Do I need permits or can I just add a room and poof now my 7bed/3bath 3-unit now becomes a 8bed/3bath??