Homerun Deal! Single Family to Legal 2-unit Conversion, Oshawa ON

[Jason Shackleton]

Investment Info:

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

Purchase price: $300,000
Cash invested: $100,000

Homerun Deal! Single Family to Legal 2-unit Conversion Oshawa ON

- BRRR
- Purchased in 2015 for $300 000
- Invested $40 000 into renovations
- 20% Down payment of $60 000
- ARV of $585 000 in 2017
- Refinanced the property at 80/20
- High demand area with strong and increasing rents
- Minimal Cash Flow at $100/mth. Due to refinancing with a new mortgage
- 2nd Buy and hold property in my portfolio
- Current 2021 value $800 000!
- My story was featured in Real Estate Wealth Magazine

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

I invested in this type of deal because Legal 2-units are in high demand in my town.

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

I found this deal on the MLS. I could have potentially went lower on price. However I knew the potential and did not want to lose the deal over a few thousand dollars.

How did you finance this deal?

I financed the purchase and renovations from the proceeds of a previous BRRR deal.

How did you add value to the deal?

I added a legal 2-unit apartment in the basement of a single family home.

What was the outcome?

2 years after purchasing the property it was worth nearly twice what I paid for it!

Lessons learned? Challenges?

You have to value your time. I was in no rush to renovate this place. I should have renovated it quicker by hiring some help. I did most all of the renovations myself while holding down a full time job. I also did not have extra money available at the time. I should have borrowed some cash to finish it quicker!

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

I used an investor friendly realtor and mortgage broker.