Single family to duplex conversion BRRR Deal

[Jason Shackleton]

Investment Info:

Small multi-family (2-4 units) other investment in Oshawa.

Purchase price: $210,000
Cash invested: $70,000

- Purchased in late 2014
- PP- $210 000
- 15% down payment, $30 000
- $40 000 invested In renovations
- Refinanced at $295 000
- Pulled out $60 000
- Left $60 000 in the deal
- Current walue in 2021- $675 000
- BRRR Deal
- This was a single family conversion into a legal 2-unit property.

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

The massive forced value add potential. Also this town had a lot of good fundamentals going for it.

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

This was simply found on the MLS by an investment friendly realtor.

How did you finance this deal?

Savings financed the downpayment. My job then paid for the renovations as I progressed with the deal. 30 year fixed mortgage.

How did you add value to the deal?

I converted it from a single family home into a legal 2-unit investment property. I also renovated it adding cosmetic updates.

What was the outcome?

An ARV of $295 000.

Lessons learned? Challenges?

I should have have had a variable rate mortgage as I intended to refinance it. I would have saved money in the mortgage breaking penalty.

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

Yes I worked with an investment friendly realtor and mortgage broker.