Yes.More useful living space is typically considered more valuable.However, if you convert an area into a 'bedroom' - if the sqft doesn't work for a bedroom, or the conversion isn't to code, or it just looks 'weird' that may actually detract from the value instead of increasing it.

@Mark KrupaThanks Mark.

Looking for retail space for sale.

@Mark H., thank you for taking the time to write out a comprehensive response.

We have come into some money and would like to take the opportunity to use it as a down payment on building another quadplex on the same lot... we have plenty of space for that.

It is kind of a weird place in that there are only 2 bedrooms and small single bath but huge living room and decent kitchen, 2000 ft of living space with 1600 ft of attached finished garage.

In my area this loop hole works if the attic is only for storage. the space can't be counted as square footage or used for any sort of rental space. 

If you do it enough and get rich enough, you'll stay out of prison, but I don't think you can hit that mark quick enough.

@Mark H.

We have a 100 y/o single family buy&hold in Missouri and would like to turn the attic into usable space. ideally we could keep the rafters exposed in keeping with the character of the home, so the standard 6 inch fiberglass would not work.Is there a DIY compact type of insulation that would work?