3/3 Family Home for us to Live in

[Tyson Head]

Investment Info:

Single-family residence buy & hold investment in Vernon.

Purchase price: $505,000
Cash invested: $100,000

We sold our condo at a high value and purchased a 3/3 single family house on .25 acre.

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

We were looking for a family house and my wife and I were expecting our 1st and 2nd child real soon. Looking for a place that had an unfinished walk out basement for suite potential in a good neighbourhood.

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

We found the house on the MLS. It was an estate sale and previous accepted offer fell through. Basic negotiations, never split the difference.

How did you finance this deal?

We sold our what was to be buy and hold property that we were living in and used the money for the down payment on this house.
Used a traditional bank mortgage for the remainder.

How did you add value to the deal?

2/3 of the basement was unfinished so we turned that section into a 1/1 basement suite that now rents out for $1000 per month. Also finished the landscaping, built a shed, repaired the fence, new paint through out, new windows where needed, rebuilt the master bathroom and closet updated the kitchen lighting, new bathroom countertops and sinks. House had some recent renovations completed prior to our possession. Have future intention to install 2 closets and a window to turn it into a 5/3 house.

What was the outcome?

Amazing tenants, great house in a perfect location and extra cash in our pockets by the end of the day. The $15k we put into the basement suite increased the house value by $40k if we do decide to sell.

Lessons learned? Challenges?

Don't trust other peoples reno jobs, many don't know what they are doing. Find good tenants that make your life easy.

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

My usual real estate agent.