Buying a rural house with no basement in Canada

[Jeff Beler]

Hello BPers,

I am a buy a hold investor in the golden horse shoe of Ontario, Canada, and currently own 2 properties. 

I looked at an SFH acreage just outside of town, and loved the place, but it is over 50 years old, and has no basement whatsoever.

My question is 2 fold.  What are the risks of a property that has no basement, as i have never viewed one, and has anyone had sucess renting one out?

I like the look of the numbers but would like some feedback on the no basement situation.

Thanks, and happy investing!

Jeff

[Darryl Young]

Hi Jeff,

No basement will definitely tend to limit the potential pool of renters. Is there a high water table in that area? Are most other houses in the area built without basements? Is this in an area of mainly seasonal rentals and cottages? If you are looking at utilizing it as a seasonal or cottage rental I don't think the lack of basement will have much effect. If you are looking to rent it out as a full time residence you will be limiting your potential number of renters. You can always explore having the house raised and a full basement installed, however the cost would need to be justified by the additional rent income.