How Much Property Value Does Adding A Bathroom Add?

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00:00 good morning everybody this is Joe light 00:03 sorry about the sunglass it’s extremely 00:05 bright I am under here I have to keep a 00:07 lot I can’t see handy to a property that 00:10 my wife and I we’re partners own and I 00:15 wanted to talk real quickly about the 00:18 reason why I’m going is to check on the 00:19 progress of a half bathroom that we’re 00:21 installing so I want to talk about the 00:23 value that half bathroom would add to to 00:26 a property now the National Association 00:31 of Homebuilders estimates that a half 00:34 bathroom adds ten and a half percent 00:36 value onto a home and this property is 00:39 worth probably 160 maybe 170 actually 00:43 probably closer to 160 probably what 00:46 does better but so that brings us out 00:49 less $16,500 what this this bathroom 00:52 according to them will act just for your 00:55 information they estimate that a full 00:57 bathroom will add 20 percent value onto 00:59 onto a home so art we have a Mason great 01:06 guy very talented very gifted who’s 01:09 going to give us a half bathroom for 01:10 $4,000 01:12 now he’s I’m based in these Mason’s they 01:13 don’t care they don’t care about bricks 01:15 they don’t care about opening up walls 01:16 it’s nothing to them that’s what they do 01:18 whereas you have to talk to a contractor 01:21 it gets to be a big thing basing pulled 01:24 this off they’ll do it all day long so 01:27 basically when you subtract $16,500 or 01:30 I’m sorry subtract the $4,000 cost of 01:32 the bathroom from the 16,500 that will 01:34 get in equity it’s a great deal so it’s 01:38 kind of a no-brainer for us but our 01:39 reasons are actually other than just 01:41 monetary I mean it’s at least monetary 01:43 so I guess if you follow my train of 01:45 thought it eventually does get monetary 01:47 but we bake we inherited a tenant that 01:49 is not really ideal for us she’s an 01:52 elderly woman who is in incredibly poor 01:54 health 01:55 now we expected her to move out by now 01:59 she’s waiting to get to an assistive 02:01 living development and it just hasn’t 02:03 happened and it doesn’t look like it’s 02:04 going to happen anytime soon 02:07 so that’s kind of causing us a problem 02:09 because the property is actually worth 02:10 in rented far more than she’s actually 02:12 currently pay so as is right now she’s 02:15 paying five hundred and fifty dollars a 02:16 month on rent the property is worth 02:18 eight hundred and forty dollars a month 02:20 in rent as is you know when we’ve 02:21 finished we expect to get around eleven 02:24 twelve hundred dollars in rent so we 02:25 want to get in there we want to renovate 02:26 it we want to make it new we want to get 02:28 our equity back out so on and so forth 02:30 we want to do everything we do now we’re 02:33 not the business of being nice to old 02:35 ladies you know we’re not and I don’t 02:37 suggest you being the business of making 02:39 nice to old ladies there’s really not an 02:43 economical way foundation that you can 02:45 actually run your business being overly 02:47 nice to elderly ladies however we’re 02:50 definitely not the business of being 02:52 mean to elderly ladies either so my wife 02:55 and I are looking to boot this poor 02:58 woman who’s lived in this house for 12 02:59 years now where are we looking to crank 03:03 her rent up from five hundred and fifty 03:05 dollars to the forty that it should be 03:07 so we’re trying to figure this out 03:10 without damaging the tenant I don’t know 03:14 that I’m fully advocating that you do 03:16 what I do we don’t have to find our own 03:18 path this is my wife in my path but this 03:22 half bathroom actually helps us out 03:23 because she actually can’t get up the 03:25 stairs to use the bathroom so she 03:28 actually had a toilet installed in the 03:30 stairwell of the first floor so there’s 03:32 the toilet this random toilet just 03:34 sitting in the middle of the floor 03:35 horrified certainly attracts value from 03:39 the property so this half bathroom is 03:41 actually going to allow us taking rid of 03:43 that toilet it’s going to allow us to 03:46 give them a bathroom that they can use 03:48 so we can get into the only bathroom 03:50 that actually is there the full bathroom 03:52 and give it a full gut job and the 03:54 daughter can go sees an adult daughter 03:56 so you can go to the gym and shower 03:58 there and at least they’ll have a 03:59 bathroom that they can relieve 04:01 themselves the full bathroom upstairs is 04:05 just a full gut I mean everything has to 04:06 go the toilet has to go the tongue has 04:08 to go that vanity has to go the ceiling 04:10 has to go the walls the floor the 04:12 subfloor everything has to go so it’s 04:14 we’re going to need a good two weeks to 04:16 get in there and to do this you know 04:18 it’s a Philadelphia home 04:20 the largest really can’t throw a lot of 04:22 contractors in this room it’s too small 04:24 really if you had two contractors 04:26 working that that room it’s going to get 04:28 a little tight we’ll probably just use 04:29 one contractor and I’ll probably just go 04:31 there and work on it myself so again I 04:35 just want to talk real quickly about the 04:37 value a bathroom adds to a property and 04:39 maybe discuss some of the reasons why we 04:40 do what we do and I’m gonna upload some 04:43 photos of the before photos some during 04:46 photos and some after photos and 04:48 hopefully you guys can actually create a 04:50 dialogue and we can actually discuss in 04:52 the comments on this video the different 04:56 things that different improvements that 04:58 one would make and the value that it 05:02 might not anyways you guys enjoy your Saturday

Author:

Joe White

Joe White is a Philadelphia Property Manager and Real Estate Broker. He is the owner of Grow Property Management and has been involved in the management, sales and purchases of Philadelphia area rental investment properties since 2008. He is an author and works as a real estate investment consultant and construction manager.

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