BRRR Strategy - Increase square footage for refi appraisal or keep rehab costs low?

[Eric Miller]

I've done a couple of flips but I'm closing next week on the first property I plan on BRRRing and I have a question about increasing value.

Most of the value increase will come from normal rehabbing, kitchen, adding a bathroom, and generally updating it from it's current poor condition. It's on a small bit of land with amazing views.

Where I'm stuck is when I should reconfigure the floor plan and also add a dormer to the attic space - now, prior to renting it out? Or wait until I sell it in 20 years or so? If I do it now it won't make much difference in the rental rate, certainly not enough of a difference to pay for the extra $$$ added to the refi, but it will add a lot of square footage, get rid of a strange floor plan, and open up beautiful views of the mountains. It would definitely increase the ARV by 20% or more.

If I was flipping I would do all of the work now.

Any general rule of thumb for a BRRR? Keep it cheap so it pencils out for a rental or increase the value?