Currently doing BRRR- does it make sense to add full bath for $25k?

[Nathan Furlow]

I am fairly new to the BRRR method but currently rehabbing a 3bd/1ba (1189sq ft) I am going to share all my numbers and would love opinions from experienced investors on what you would do.

- Purchase Price $38,450

-Full Rehab $75k (roof, interior/exterior paint, new kitchen, new bath, new floor, new appliance)

- Add full bath $25k (88 sq ft) is the option/decision

As far as cash flow, here is are the two options....

- 3/1 would be... Total Investment for this option is $113,450

- $1350/monthly or $16,200/annual with all annual expenses totaling $15,614 with positive cash flow of $586 (7% CoC Return). My cash Refi at 60% LTV would be $105k which would leave 8450 investment in house.... keeping house as is not adding bath is Cash on Cash Return of 7%.

3/2 would be...Total investment for this option is $138,450

- $2150/monthly or $25,800/annual with all annual expenses totaling $17,344 with positive cash flow of $6652 (70% CoC Return) .My Cash Refi at 60% LTV would be $129k which would leave a $9,450k investment in house.. adding a new bath would be a Cash on Cash Return of 70%. 

Because of the increased rent from having 3/2 vs 3/1 of $800 per month with added rehab cost of $25k, my break even is 2.6 years. This seems like a no brainer but would love some additional input from more experienced investors. What am i missing? Thanks so much and look forward to the feedback.