Carriage or Row House Financing Ideas

[Joel Sherlock]

One of the markets we invest into in BC's interior currently (Kelowna BC) has less the 1% vacancy rate, the city is going to be opening up the rules for adding a carriage house (or lane-way house) thus giving us a great opportunity to add another rental unit onto an existing property.

The banks however will be happy to lend once the project is done but leaves us with a short term cash challenge to get the approx 200k to get the project up and complete. 

The current homes are worth about 450/unit, the row house will cost about 200 and add about $1750/ Month in rent, when done we are looking at a new value of 675-700. So we would love to add one to all of our homes.

The current plan is to leverage 2 properties to build one row house then refinance and build the next, continue until all of our rentals in this market have a carriage house.

We would be able to save some $$ if we were able to build them all at once. Does anyone have any great ideas? We have looked at costly private funds and the cost of that capital did not outweigh the savings.

Thank you !