Sacrifice closet for full bath?

[Matt W.]

I'm analyzing a BRRRR in Wilmington, NC of a 1100 sqft, currently 3BR/1.5BA one story brick ranch. In the master, there is an attached 1/2 bath and a walk in closet. I'm considering converting the bath to a full and losing the walk in closet. The closet is approximately 5x6', so I could use the entire space and ad a tub or only use part and add a small shower. My estimates say it would be about $2-3k more to make it a full, and I plan to gut the bathroom even if I keep it as a half bath.

From an appraisal point of view, all things being equal, my understanding is a 3/2 will be worth more than a 3/1.5.  My concerns is that when I try to rent it, the lack of closet may make it harder to find tenants.  The house is in a great location near the swankiest beach and shopping area in town, so I believe it would attract high quality applicants. 

Would I likely get that $3000 back on the appraisal? Would it help the house rent for more, or rent faster? Or would the lack of a closet cause more problems than the benefits of the full bath? 

Thanks!

[Theresa Harris]

Unless there was a way to take part of the closet (ie leave 3x5) and add a bath/shower, I'd leave it.  You can't have a master bedroom without a closet.