More Bedrooms vs Better Living Space

[Mark Koontz]

Good evening, 

I am currently flipping a ~550 square foot house in a low income area. Population is ~50,000. Median household income ~$41,000. The house is a total gut with an entire new floorplan. I decided to go with a 2 bedroom layout which greatly reduced the living space. My thoughts behind this is with the location and buying power of buyers in the area, the bedroom count is more important than the extra living space. Also, 2 bed comps are a bit higher than the 1 bed comps. 

Does anyone have any insight on bedroom count vs living space in low income areas? 

Thanks in advance.