Should I add a third bedroom?

[Lance Nelson]

I purchased my first property 2 years ago and it's a 1250 sq foot 2BR 2BA townhouse near Portland, Oregon. The master bedroom has a very large walk in closet that's attached to a laundry room. After a little creative inspection I feel that I may be able to add a third bedroom to the townhouse, but it will be very small (around 85 square feet). To put the bedroom in I'd need to move laundry into a large bathroom (there is room), add an egress window, remove a few walls, add a door, and re-carpet. I think I could do it all for under $10,000. I'm trying to decide if this would be worth it or not. My house's zillow estimate is about $307k (2BR, 2BA 1250 square feet) and there are 3 BR's across the street in the same development with more sq feet that zillow estimate about $350-360k (3BR, 2BA 1405 sq ft). I'm a newbie investor and am wondering if anyone can weight in on wether this is worth it to add a 3rd. Thanks!