SUCCESS STORY: Raised Rents & Forced Appreciation - Hamilton, ON

[Jacob Perez]

WHAT'S UP EVERYONE!!

Now that my final tenant moves in this weekend thought I'd share a little bit about my latest project. I bought a 4-plex in Hamilton Ontario and I want to give everyone an inside look at what this deal looked like from start to completion. 

The highlights will include:

• Winning the deal in competition (w/ a bully offer), and what factors led to the deal we received.
• Acting as the GC on my first Renovation
• Evicting 3 of 4 tenants (How I did it)
• Biggest Challenges of the project & lessons learned
• Just some honestly Hilarious things that happened during the course of the 3 months this took from closing to completion that will be great for the forums. 

For now I'll leave you with the final results - but I promise to update this on the weekend. 

[Jacob Perez]

Part 1: Market Conditions

My best deals have generally been the result of a selling agent not doing their job properly. I've never bought off-market, but if you're aggressive enough on MLS there is opportunity.

This was listed in the spring-time (May) when offer competitions with 10+ offers were normal if the deal was right. It was listed at $530K which was extremely cheap for a 4-unit, comparable that were smaller in size than this has previously sold in the 700s.

Issues with the listing:

• Priced too low (this isn't a single family so competition isn't as fierce)
• Listed on the Commercial Board but not residential (weird mistake here as it's a Fourplex)
• Was listed in an Offer Competition on Mother's Day Weekend.

Issues with the House:

• All four tenants we're disgusting (Pets, reptiles, children, brutal smell, etc)
• Three of the Four had lived in this house 10+ years through multiple owners
• Current owner had attempted to evict them and lost in court (learned this chatting with one tenant, who let us walk through his unit after asking nicely 4-5 times...lol)
• Current rents we're very low on every unit.

More to come