Is Adding A Room Onto A Cheap Property Usually Worth It?
Is adding a room onto a cheap property usually worth it? What would the typical cost be to add a bedroom onto a house? Has anyone thought of doing this? I have a lot of 2 bedroom houses for sale in my area and would like to see if I can convert them into 3 bedroom houses. What do you think?
[addsig]
I think not. It is usually the case that it will cost more to do the addition then the increase in the value of the house.
is the added cost of adding a room going to increase the over all value of the property that much to be worth the investment. That is the question I would be asking myself before any major work on any house I own.
What's usually the cost of adding a room? Lets say I wanted to add on a room that is about a 13 by 15 room. I can buy the place for 60k and still have about 10k to play with before the property becomes non profitable. The place I'm looking at is a 3 bedroom but it is small. Only like 930 sq ft. It may rent out but its a small 3 bedroom. I'm thinking it may rent out for 600. Most renters would perfer to find another place before this one... (Thats my guess) Adding this room would give the place a lot more space. Adding this room would add about 195 more sq ft and now make it a 4 bedroom. I could probably now rent it out for 730. Your thoughts... Am I off track here or do you think it would be too much work?
[addsig]
Find out what the average square foot price would be to adding such a room as yours.
Room additions are fairly close to new construction in cost, unlike rehabbing which is a different animal.
There will be some additional time and material involved to tie the structures together but that can be figured out fairly easily.
Once you have an idea what the square foot cost is then you need to find out what houses in your area are going for.
You can do the math and find out that square foot cost.
As another poster has stated, more often then not its break even. At times it may make your house more marketable which speaks for itself.
Most two bedrooms in my area are not worth the additional monies involved to put a 3rd bedroom on.
These 2 bedroom properties are often good rental properties and thats about it.
Investors will buy them if the area and price is right.
NC
Most of the contractors in my area charge $80 to $100 per square foot and possibly more for a small room addition
ddemott:
We are in similar markets and I think your plan sounds feasible. The biggest thing to consider, though, is if this particular house is easy to add on to. An easy house to add on to...would include such things as not having to tie into an existing roof, being near breaker box and having enough room in the electrical service, ability to convert an existing window in the current house to a door leading to the addition, landscape that allows the addition to be built on a concrete slab, etc.
I would say that if these factors are present, you should be able to add an addition of this size for the budget you have mentioned.
If it looks like these factors have been met, I would secure so bids. Let us know what you decide to do.
ddemott:
We are in similar markets and I think your plan sounds feasible. The biggest thing to consider, though, is if this particular house is easy to add on to. An easy house to add on to...would include such things as not having to tie into an existing roof, being near breaker box and having enough room in the electrical service, ability to convert an existing window in the current house to a door leading to the addition, landscape that allows the addition to be built on a concrete slab, etc.
I would say that if these factors are present, you should be able to add an addition of this size for the budget you have mentioned.
If it looks like these factors have been met, I would secure so bids. Let us know what you decide to do.
If you spend 20,000 to add the bedroom and you get an extra $100 a month and experience 4% appreciation that is about 10 years to break even point. After 10 years that 20k starts returning as an investment.
The question is could that 20k be put to better use buying just buying another house and putting $200 a month into your pocket. $200 a month times 10 years is $24,000 as opposed to the $20,000 addition breaking even after 10 years.