This is a 7 bedroom property with detached oversize garage on a corner lot. When I purchased the property I knew there was a lot of potential to rent this house on a per room basis but the basement was also very unsafe (small windows, no stove, cooking plates improper fire protection etc) but it did come with some nice features such as a tankless on demand water heater (great for having lots of tenants).

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

Very high cash flow potential

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

Through my real estate agent. I purchased this property at the very beginning of Covid-19, in a very quiet real estate market. The seller was asking $399 000 and negotiated to $375 000.

How did you finance this deal?

20% down mortgage

How did you add value to the deal?

Replaced the furnace for a high efficiency one, ran CAT6 networking to all rooms, enlarged and replaced 4 of the basement windows, replaced the suspended ceiling for drywall, installed 11 (yes 11) interconnected smoke alarms and sprinkler in mechanical rooms, repainted basement walls, replaced one of the rooms flooring, added gravel to the 3 parking stalls (currently was dirt). Total cost just under $40 000. I have then legalized the basement suite to add value to the house and rental options.

What was the outcome?

Rent: 7 bedrooms are currently rented for $3770 plus $300 for the garage. Total: $4070
Net cash flow: $1070

Lessons learned? Challenges?

This property definitely requires more management due to the per room rental and the quality of tenants isn't always the best, the main challenge I found is that because the spaces are shared it is often difficult to have a tenant take ownership for an issue (smoking, noise complaints etc) and therefore makes it difficult to enforce rules or evict a problem tenant.

2 Votes

4 Replies

Jump to Last Reply

High cashflow rooming house in Huntington Hills, Calgary, AB

Most Popular Reply