What is the original, current layout?

Do you typically rent to a family or a group of roommates?

First intended purpose is a Airbnb which could be anyone, if thats not profitable, students/roomates would be next, followed by a family.

Original layout (not to scale, front room is the same size as above)

The original layout isn't bad. I wouldn't go to the expense of a large/larger closet for Air BnB travellers or students/roommates. It would be cheaper and probably better storage to use something like Ikea's PAX wardrobes. Students are going to make their bedrooms their havens and work spaces, so you don't want to shrink the BRs too much, or make them too uneven with a huge master and two much smaller ones.

A second bathroom is definitely helpful with three bedrooms. But if you're interested in attracting families, you're probably going to need at least one bathtub. I'd see about getting some professional help to rework the original plan to add a bathroom, and call it a day.

Both have two tubs, I have to add a second bathroom to get the ARV and since it is 750 sq.ft. the lender suggested making it a 2/2- thats a no go for me as the more bedrooms it has, the more money I make monthly.

The second bedroom will be extended into the addition either way, making it closer to the size of the current master.

But how do you feel about the common areas? It's barely enough space to cook, eat and relax- I will get creative with storage solutions.

And also keep in mind, it will be sold in 10 years, I figured a nice big walk in closet will help make up for lack of storage elsewhere.

Furniture for reference- 2 queens and a full in 3rd bedroom

@einportlandor would it be weird/disconnected if the living room space was down a hallway?

I can't get rid of the bedroom in the middle without extensive rehab and putting all three bedrooms at the back created some awkward halls.

But how do you feel about the common areas? It's barely enough space to cook, eat and relax- I will get creative with storage solutions.

It's barely enough space for a family, or someone who's NOT a traveller needing a place to stay on a trip or a student/roommate living somewhere while studying from September to April or May or June.

Someone at an Air BnB will either be cooking minimally, or eating out. Someone in a student situation has to share the kitchen, and likely doesn't make overly involved meals.

And also keep in mind, it will be sold in 10 years, I figured a nice big walk in closet will help make up for lack of storage elsewhere.

It's hard, but maybe consider now whether, when selling, you plan target someone else who also plans to rent it out, or to someone who plans to live in it themselves with their own family. That will affect how desirable they find your changes.

A big walk-in closet isn't really useful to most students, anyone renting an Air BnB, or someone buying the house planning to rent it out.

Are you working with an architect, builder, engineer etc. to determine what the ROI is in moving around a lot of walls?

I'm working with a need to keep it simple, the kitchen will not be changing. The house is in good condition, tearing down walls then windows may have to move and that means siding has to be replaced quickly adds up. What doesn't need to be touched I would rather not. If it needed a gut job, fine but it does not.

Just whether or not there is a back living room or not.

I would find carting stuff to that awkwardly placed storage area infuriating. I’d rather, as a renter, have usable space and rent a small storage unit. Just me.

Bigger living space over closet every time. People do need adequate space for eating, watching tv, talking to friends, and most of us would prefer to do that in the living area, not the closet.

@lizziesma @jmm1837

Thank you! I will work on maximizing common areas! The bedrooms will be proportionate for a smaller house.

And also keep in mind, it will be sold in 10 years, I figured a nice big walk in closet will help make up for lack of storage elsewhere.

Neither layout works right now. They basically take what is an ok layout and remuddle them into something not very workable with those awkward hallways that turn.

If you're thinking of selling in 10 years, I would instead make a large living/dining/kitchen area all up front and then add two nice sized bedrooms with 2 full baths. No one is going to want to sleep in that third bedroom that is only 8'6" wide. That's only wide enough for a twin bed. A full sized bed is 59" wide which would leave less than 4' on the side of the bed. That's claustrophobic.

@einportlandor would it be weird/disconnected if the living room space was down a hallway?

Yes. Public spaces should mostly be near one another.

First intended purpose is a Airbnb which could be anyone, if thats not profitable, students/roomates would be next, followed by a family.

If it's an AirBnb, I'd certainly prefer a 2 bedroom that felt spacious versus an awkwardly laid out 3 BR. And renting to students can be iffy unless you're really willing to pay for damages.

I can't see any family wanting to rent either of your 2 layouts.

much prefer a larger living space. I don’t hang out in the bedroom

Agree with cpartist. Define your potential tenant first and build what they need.

Airbnb is meeting resistance in many areas so I would be careful about building an addition that is functionally awkward like the one you propose. And that only works for Airbnb. If you have a more broad target rental market, you can switch if Airbnb is eliminated from your market. (Thinking government restrictions here).

However, if you are able to increase the size of the living and kitchen areas and eliminate that first bedroom, you have a decent start to a good 2/2 as you posted in your last layout. If that new larger living area is large enough, you could put in a sleeper so you effectively increase the number of people for the Airbnb usage IMO. That even works for your college market tenant. And your standard year round tenant.

If you stick with the awkward layout, you will end up with a huge deduction when you do sell it - there will be a cost to cure.

@cpartist people have been renting the original layout for years... Even if that 3rd bedroom is used as an office- it still counts. The lot is 27 x 100- long and skinny on the first floor is what I have to work with.

I have seen investors get away with much more funkiness.... like entering the master bedroom by going through the bathroom. Not saying I want to be like them.... just saying it can't be a gut job and it can't be 2 bedrooms.

I know its not ideal, I wish it was different. technically the front could be set up as main seating and the back a play area.... its all about staging,

Focus on what makes it viable on the real estate market down the line. AirB&B folks don't expect a place to be designed especially for them. They figure they're renting your home and that it works for you. Students rarely care; they just want a place to sleep, eat and study (+ party a few times a month.) I like the second plan because the bedrooms are all pretty large; students and guests can find space there to spend some time if you have seating and good lighting. I do think you need a powder room somewhere so people don't have to go into the bedroom area to find a toilet.

A teardown might cost about the same as a complete gut and addition. Neither would appear to make up for the big cost expended vs value gained for a pending are sale. An appealing 2 bedroom that has good public areas, now, as a rental, is more appealing as a resale down the road too. No one wants a rabbit warren of dark weirdly connected rooms for 4K a month.

Your lender is right. Much more value and appeal in a 2/2.

I'd leave the layout exactly as is and only add as much square footage as necessary to add a bathroom (3-2) or two (3-3) with decent storage on the back end (en suites). Otherwise, you're only going to get a reasonable layout if you gut it.

This is possibly (probably) more than you want to do, but it gives you two baths (one shared, one master) with a smaller addition, which might save enough on materials to change some of the interior walls. You'd have a bigger sitting area just inside the front door, with some flex space between it and the kitchen. The TV is drawn on an adjustable arm, mounted beside the front door, but could be on a small stand in the same location. The extra kitchen chair is beside the wall of book cases. I used your
template for a couch, but there is space for a longer couch to convert
to an extra bed.

The kitchen table can be moved out from the wall when needed, and pushed out of the way when there is activity in the kitchen.

Moving the wall back into the first bedroom, and adding book cases or a combination of open and closed storage cabinets on the exterior wall, opens that long hall way into an extension of living space, and puts the entrance more in the middle of the room.

No windows or exterior doors change. The area at the bottom of the smaller master bedroom could become a private porch or deck for the master.

(Waving to any Smaller Homes peeps from the old days. :)

^That 3 bedroom plan makes much more sense!

At least then you have something that is not only marketable for rent but also for sale in the future.

If this is for Air BnB it’s very different than a monthly rental for a family. The turnover is faster and people are far less concerned with layout but wants beds to sleep in. If it were me, and the nightly rentals was the focus, I’d set it up with as many sleeping spaces as possible to get more bang for rental buck.

Mama goose’s plan is much, much better than the original drafts. Listen to her.