In this Spanish-style home renovation, we took a dated 2 bed / 1 bath layout and transformed it into a highly desirable 3 bed / 2 bath — all by rethinking the existing space.
Instead of doing an expensive addition, we converted the dining room into a third bedroom and repurposed the laundry area to create a second full bathroom. This is exactly the kind of strategic layout optimization that separates average flips from highly profitable ones.
Most buyers today expect a functional 3/2 layout — and by delivering that without expanding the footprint, we dramatically increased both the property value and the buyer pool.
This project is proof that the biggest value in real estate isn’t always in adding space — it’s in seeing potential where others don’t.
My name is Elisa. I'm a house flipper and coach in the San Francisco Bay Area. Follow @Transform Real Estate to follow our journey of flipping houses and see more home remodeling tips and tricks and house renovation before and after videos.
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You can significantly increase a property's value without adding a single square foot.
Most people falsely believe that to add a bedroom and bathroom to a house,
you have to add on to it, which requires a significant amount of time and money.
The most important skill as a house flipper is to see the potential of the property and
to increase its value with the least amount of time and money. And by using that exact skill,
we were able to convert this two bedroom, one bath house into a three bedroom, two bath.
And I'm going to show you exactly how we did it. In the front yard, the grass was completely dead,
but the worst thing for the curb appeal was actually that awning that was so hideous.
It's nice to have outdoor seating area, but you can't build that haphazardly. So we decided to
take it out and instantly gave this curb appeal a boost. As we get closer to the building,
we also replaced all the windows and the roof. These are expensive things to replace,
but they do give the buyers a peace of mind and also increase the value of the home.
And then because the garage is detached at the back of the property, we put in this metal gate,
so it's more convenient for cars to drive in and out. Welcome inside. The living room feels very
bright and pretty now, but there was an old chandelier here that we replaced. We also
freshened up this fireplace by painting the bricks. We removed a little cardboard here
that was really old. We also replaced the parquet floor to this very neutral light colored floors.
I know some people like the parquet floor, but because it dates the home a lot, so we decided
to replace it. I think the lighter flooring color just makes the home a lot more modern.
So this is the third bedroom that we added onto the house. This was originally a dining room.
It was pretty spacious and very formal. And this is a very small house,
so it doesn't really require a formal dining space like this. And I think a third bedroom
is way more valuable than a dining room. So we decided to add this closet and convert this into
a new bedroom. By adding this new bedroom and the bathroom and creating a new master bedroom,
we were able to increase the property value by about 10%, so $150,000. And that's a big deal
because without those, the numbers wouldn't have worked. You asked me how I know because
every time I run the deal analysis, I use my deal analyzer. I plug all the numbers into it,
so I get to the max purchase price that I can offer on the home. If you want to borrow my deal
analyzer, make sure you grab it in the link in the description below. There was an entrance to
the kitchen over here that we blocked off. And now because the dining room doesn't exist anymore,
we had to carve out this little space between the living room and the kitchen as the new dining
area. Even though it's not very big, but because the house is pretty small, this actually is a
good size. The kitchen went through so much. There were a few doorways in here, one to the old dining
room, another to the old laundry room over there, and then another doorway to the hall right here
that we blocked off. And instead, we made this opening way bigger, going to the new dining area
and the living room. So that allowed us to have this open concept and the space feels a lot bigger
and more functional. We also added this little glass door to go to the side yard so that we have
an access to the backyard without having to go through any of the bedrooms. In terms of the
kitchen, it was so old and it was all yellow and we gutted all the cabinets and appliances and we put
in this new kitchen that's very modern with all new cabinets, countertops, and appliances. We didn't
really do any backsplash here because this is a lower priced home and just a little backsplash
like this is enough and we didn't want to spend money that we can't get a return on. And we also
usually leave this fridge space open because buyers tend to have their own opinion on what type of
fridge they want to get for the home. Some people like a French door and some people like three
doors and some people prefer a water dispenser and some people prefer not. So we usually leave
this choice to the buyers to decide. The bedroom renovation was way simpler. We only had to put in
a new ceiling light, replace the windows, and put in all new flooring but now it seems like this
bedroom is of a very decent size and it's pretty comfortable. This was the closet that looked like
a sauna before. We painted all the walls and put in the shelves so it doesn't really feel like a sauna
anymore. This was the old pink bathroom that had a weird layout. It had the shower on this side and
then a closet over here and a pedestal sink which was very useless. So we decided to gut everything
and also revamp the layout so that we could fit a bigger vanity that allows you to have storage and
also more counter space compared to a pedestal sink. And then for the shower, we relocated it
to this back of the room so that the layout just makes more sense. For the finishes, we used these
subway tiles and tiled them vertically so it gives you an elongated feel and it just looks
very clean and modern. And I think the bathroom is 10 times better than before. Originally this
bedroom was quite odd because there was a doorway here going to the kitchen. Why would you need a
doorway to the kitchen from a bedroom? So we decided to close that one out and instead we added
a new master bathroom. So this bathroom was originally the laundry space and we decided that
it's more useful to have a master bathroom than to have a big laundry room. So we added the shower
and all the fixtures and made this a very useful space and also we significantly added value to the
home because if the home only had two bedroom one bath, it just reaches a small buyer pool because
most families, young couple with kids or are expecting kids, they're gonna want at least
another bathroom so that they don't have to share the bathroom with kids and that really solved the
problem. And for the finishes in here, we had the same subway tiles in the shower and then on the
floors we used contrasting floors that are a little darker. It really enhanced the style and I especially
like this shower door that has black hardware and it gives it a nice frame. I'm really happy how this
bathroom turns out and I'm also glad that we were able to make it happen to add value to the home.
This closet was originally here for this bedroom but we were able to keep the interior door which
is really nice because it saves us a lot of money and the single panel shaker style doors
are back in style so we didn't have to spend more money to achieve the style. Because we had to use
a laundry space to add the new master bathroom so we had to fit it back into the home somehow
and that was quite a challenge because the home is only 1100 square foot and every square foot
counts so after looking around and trying different options we finally decided to fit it into this
closet here so you may notice that this door is ultra wide so we actually placed laundry hookup
in here and they can still have stackable laundry so it's a big convenience to have indoor laundry.
In this detached garage the concrete slab was completely shot so we replaced it which is
expensive but it was something that we had to do because we could not sell the house with the
concrete like that and we also sherock all the walls so now the buyer has a choice whether they
want to park their car here or store some of the stuff that they want to put in the storage or they
could even use this as an office or as a gym. The backyard did not look like this it was completely
dead but we revived it. First of all we took out a deck that was here it wasn't connected to the
house and it was just standalone over here and it was pretty rotten so after that we had to
put in the concrete patio and now it gives us a very good size seating area and the rest of the
yard is also beautified by a lot of flowers some new mulch and a new lawn though it's kind of
destroyed by some gophers but we're going to fix that for the new buyer of course and I really love
the size of this backyard because it gives the buyers again some options because of how big it is
they could easily add an ADU or a shed of some sort so they can have more living space out here and
that's so valuable. You may notice that I tend to add plants and mulch to backyards but I also
like to add planter boxes like these to a backyard because a lot of buyers like to grow their own
vegetables now and they also like the variety that the backyard shows them so we have a nice
lawn here and we have pathway and concrete patio which are pretty standard for backyard's
enjoyment but planter boxes give them another option for them to grow their own produce and
they also can see how big the yard is with the diversity. Now you've seen this whole transformation
let's get to the numbers. I purchased this house for around 1 million dollars and we put about
into the renovation because the house needed everything and we finally sold the house for 1.5
million so we made a six-figure profit. In the next video I'm going to show you how we turned
a hillside fixer-upper that didn't have a master bathroom into a 2.6 million dollar sale.
We added a much-needed bathroom and also completely transformed that property. I'll see you there.