Adding Bed/Bath in converted garage - Sacramento, CA

[Deepak Arora]

I'm planning to buy a property that has a converted garage. However, according to me, that space is not well used. So, I am planning to further remodel that space into a master bedroom. It also has a huge laundry area next to it that I am planning to convert to a bathroom. The bathroom will be a substantial expense. Hence, I've a few questions:

- The converted garage is unpermitted. If I further remodel it, what is the worst case scenario I should expect if the city/county come to cracking down?

- If I go to the city/county office and ask for permits for the converted garage and submit my plans for further remodel, any vague idea on how much time and money it might cost me, in addition to all the actual work that will be done inside the house?

It is currently a 3 bed 1 bath house and is priced below the average for its market. Hence, I believe adding another bed and bath would really add value to it. Plus, being a relatively new investor, will teach me a lot about rehabs.

Any input from my fellow experienced BP-ers would be highly appreciated :)

DeEpAk