Now the real estate commission here has instructed agents NOT to measure, but to just use the best source of info that we have available like public records and fill out the square footage disclosure stating where we got the square footage info from.

So, even though you would be adding square footage in that scenario, it might be counterproductive.  

If you're doing PVC or metal, it will probably be higher than that.The nice thing with roofs is that you can probably get a general idea of price over the phone, since roofing costs are pretty much independent of the actual property -- as long as you know the material and square footage, you should be able to get general pricing over the phone.Feel free to shoot me a private message, and I'm happy to refer you to a few serious investors I know in that area...

Again, lease doesn't explicitly state there will be an increase though, and for having the most sq footage (1 br + basement) she's paying below market rent.Units 3+4: two more studio apts, can rent for $750 each.I plan to put in an offer contingent upon inspection (and obviously getting into Unit 2...), but I'm not sure whether I should also ask for the property to be delivered vacant..My questions:- If I keep the tenants, what should I obtain from the current owner or the tenants themselves?

Can adding a bedroom and bathroom without increasing the square footage of the home still increase its value?

Your return on equity is very low based on those numbers provided so yes, some action needs to take place whether it be adding square footage, new construction, or 1031ing.

It looks to be a true 50/50 split based on square footage, so eventually when you go to sell you will be taking 1/2 of the property and applying the federal tax exclusion under Section 121 and the other half will be treated as a capital asset subject to capital gains.

@Zachary Bannon in terms of asset classes, would you be open to a smaller square footage single family?

New build...i was able to add value by choosing to build a mezzanine to increase sqr footage.

Designed this with a pencil and paper trying to utilize space, simplicity, square footage, and appeal.