Building a legal secondary suite

[Christian Cajina]

Hello BP members,

This is my first time posting and recently joined. A very beginner investor here, a little about myself is I have one rental property and looking to expand. I'm from Canada living in Central Alberta and just wondering if anyone can give me some advice and insight on a potential build. I'm wanting to use the house hack strategy for my next purchase, along with BRRR as adding a this unit will increase value of the property! I have a few properties that I'm looking at and would like to know what are you average costs for building a legal secondary suite, unfinished or having to remodel. I've looked online but very little information on it. Most information I've came across is in other provinces that don't have the same requirements, so cost will be different. I've also spoken to a few people and they are telling me around 50k CAD. Im also approved for 500k mortgage at 5% down. I've also thought of building a full duplex and renting out one side... although I have been told I would be way over the 500k mark on that. Any advice helps! Thanks in advance!

- Christian 

[Luc Boiron]

Originally posted by @Christian Cajina:

@Sean Kollee the most inexpensive lot in my area is 159k. The market has definitely slowed downs bit but not too much in my area. Edmonton is still doing alright, would like to buy a property there, but I’m looking at moving so I have to stay in my area. The Edmonton market is usually pretty resilient. In my city in order for it to become a legal secondary suite property owners must supply at no charge one extra parking space off street for a suite with 2 or 1 bedrooms. So I cannot charge out space if I build a garage although it would add value and be more preferable. But if you’re that confident on those estimates I’ll keep looking for quotes! 

I once did a Legal Second Suite conversion for about $50k. I believe that was around 2013 though, and renovation costs have drastically gone up over the years, as have legal requirements for the units which have added to costs.
I don't see anyone doing SDU conversions for less than $80k, unless they do a lot of the work themself.

I see many SDU projects coming in at $100k-$180k for renovations.