Turn a 2bed2bath into 3bed2bath

3bed2bath single family house is usually the most desirable type of property in most cities. Married couple who has 1 to 2 kids, or plan to have a kid in future will likely to pick 3bed2bath over other type of floor plan. Therefore, 3bed2bath is always filled with high demand, and hence, the value will be driven up.
I have a friend has a creative idea to make some good money by focusing this niche market. He will consider any smaller property to buy and turn it into 3bed2bath. Because it has less demand, a smaller property 's price range could be significantly lower. In one of his best deal he creates, he locates a property with 2bed2bath that has asking price 100k less than a typical 3bed2bath in the same neighborhood. He finds professionals to submit plan for legal construction permit, and contractors to build an additional bedroom with 100 sqft. (In fact, it's a pretty small bedroom...) The total cost is only 30K. After its completion, he quickly put it on the market advertise it as a 3bed2bath, which is much more desirable now. He make a handsome profit 70K in short period of time by using this simple and obviously working strategy.