Which home has better value for purchase?

[Vidya Pedam]

We are debating between two homes for a investment purchase and need your help please: (a) 4 bedroom home with a den and half bath downstairs on a bigger lot (8500+ sqft) or (b) 5 bedroom home with a full bedroom and bath downstairs on a medium sized lot (5000 Sqft). The sale price is almost similar with 10K higher price in Home B vs Home A.

Which has better value for renting and reselling later. This is a new construction with reinforced concrete as the basement. So converting the half bath to full bath downstairs seems to be very expensive. Your advice please. Thanks

[Patricia Steiner]

More bedrooms does not always equate to more rent and more land is not always a benefit as someone has to maintain it.  The way you'll have your answer is to do an online search of "houses for rent in (city)."  Look through the list and find those that are comparable to the ones you're considering, what the ask rent price is, and how long it has been listed for rent.  With that information, you'll be able to determine the competition, the market rent, and is there any demand.  I also consider who I want as my targeted tenant - a family, young professional type, etc.  From that, you can determine whether either property meets that profile.

Hope this helps...