Change layout of a chopped up house worth it?

[Joe Henry]

I'm evaluating a 1200 sq ft single story house on a slab. It's got 4 bedrooms crammed in, making the master bedroom no bigger than the others, and also only allowing ~ 6 x 6 master bathroom.

I'd like to make it a 3 bedroom, give each bedroom more room, the master would have a much bigger bathroom and maybe a walk-in closet. But this would require moving 1 or maybe 2 bathrooms, also maybe moving the kitchen a few feet over.

Assume the full rework costs 60k, vs just cosmetic work costing around 35k.

This is a buy and hold, so do you think it would be worth it in the long run to change the layout?

Does a layout change like this come with a significantly higher rent price in your market? It's a family neighborhood, B maybe B+ type area. 

Have you ever had trouble renting a place with a weird layout? What is your usual decision in situations like this? Rentability or rehab budget?