To add a bedroom... or not?

[Christian S.]

One of my rental units has a huge laundry room and an adjacent pantry. I want to move the washer/dryer to a stackable unit in the pantry to create a new bedroom. I would lose the extra utility space for laundry and stuff, but add a new bedroom with its own slider door. I'd also do flooring, and move a water heater.

I looked at rentometer. 2 bedrooms average 13-1400, 3 bdrms avg 1700, but most of the higher rent 3 bedrooms have 2 baths, mine has 1. There are also only 14 2 bedrooms versus 42 3 bedrooms near me. So there might actually be a benefit to keeping it as a 2 bedroom.

I really like the idea of adding the bedroom, I'm attached to the idea which is why I'm asking you all if it might not be worth it. I'm already raising the rent from $1000 renting so earning $700 more instead of $400 per month would be sweet.

What would you do?

The 3-unit property will still cash flow while I'm doing this work. TIA, I appreciate your input!