Forced appreciation examples

[Scott K.]

I'm curious to better understand some of the nuances around forced appreciation while rehabbing. Some questions include:

- When is it appropriate to add an additional bedroom?

- When is it appropriate to add an additional bathroom?

- Is there some sort of square footage heuristic that should be used for the above?

- Aside from adding a bedroom or bathroom, are there other ways to substantially appreciate a property?

It would be great to be able to view some examples of this!

[Kenneth Garrett]

@Scott K.

If you look at what sells houses it kitchens, baths and number of bedrooms.  Kitchens will get you the best return.  Renovating bathrooms are good as well.  Adding a bathroom depends on the particular market, but when I’ve added them it is a good return.  If I can buy a 2 bedroom house with at least 1000 square feet, then I can add a bedroom that will net a great return.