Evaluating if adding sq ft or rooms to a house is worth it?

[Leonard Poliziani]

Hi, I wanted to expand my knowledge on the topic of adding resell value to possible rehabs that have the space to add sq ft in certain areas. To keep it short, what are you initially looking at when deciding if adding a level, or just extending sq ft for extra rooms to the sides of the home or even converting rooms to beds/baths in a home is worth the cost/risk. What are the factors to consider and what has to be in place to even think this is a possibility? I am in the north jersey market and see experienced rehabbers successfully completing projects like this for big margin returns. I'm not trying to risk miscalculating an extensive decision like this, so I was wondering if there were a select key things to consider or that have to be in place before even thinking this was a good idea.

Thanks,

Lenny 
LP3 Realty Holdings, llc