Small 2 bed 1 bath, or large 1 bed 2 bath

[Justin Pumpr]

Hi all,

Im about to close on my first flip property and am trying to decide between converting the property into a true 2 bed 1 bath, or keeping the property as a 1 bed 1 bath, but opening up the walls to have a large open plan living space. 

Tbe property is a duplex with ~800sq ft in each unit. No room to add extra sq footage. I know for a rental property a 2 bed 1 bath would demand higher income, but as a flip for a new investor to purchase, or somebody to house hack, which would be more desirable? 

if I keep it as 2 beds then the kitchen and living area would be pretty small, but if I removed a bedroom I could open up the whole front area and have a really nice and welcoming living space with a decent sized bedroom at the back. The layout in each unit would be indentical.

Any input would be greatly appreciated!

[Will Barnard]

The resale value and the rental value are higher with the 2-1 than the 1-2. So with that, if it were my investment, and speaking from a CA investor, the 2 bed 1 bath would be my likely decision. That said, you should double check resale values in your specific neighborhood for these to verify I am correct.