Live-in, fix, move out, rent - refinance

[Chris Habets]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Ottawa.

Purchase price: $316,500
Cash invested: $55,000

Duplex that started as a live-in. I own it with a partner (legally co-owner in Ontario). Currently rented to students in one unit and a social assistance recipient in the other. 4/1 split.

What made you interested in investing in this type of deal?

It needed work, well priced, coming-up neighbourhood, well situated for students.

How did you find this deal and how did you negotiate it?

MLS, realtor and inspection caught ungrounded copper wire, knocking $40K off the agreed upon price.

How did you finance this deal?

5% down first time homebuyer.

How did you add value to the deal?

Full rewire, plus cosmetics.

What was the outcome?

Refinancing this spring to pull out $100K in equity, ~18.5% IRR

Lessons learned? Challenges?

Contractors are contractors. Plan for them.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Reach out to me.