Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $545,000
Cash invested: $150,000
Purchased our first home with the first time home buyer program and turned the semi-detached bungalow into a 2 unit property. In the meantime we are living on the main floor, while we are renting out the basement for more than half of price of the mortgage. Hoping to eventually rent out both units and have a cash flow of around $500-$750 per month. Our return on investment for the basement apartment alone will be about 3.5-4 years.
What made you interested in investing in this type of deal?
We were renting and wanted to buy our first home. Was able to leverage my family company (BVM Contracting) to complete the renovations.
How did you find this deal and how did you negotiate it?
It was a private sale. Was about to go on the market but we were able to get a bid in before it went on the market.
How did you finance this deal?
Savings and first time home buyers plan to lower the down payment. We also used a purchase plus improvement mortgage to help with regaining a portion of the costs of the renovation.
How did you add value to the deal?
We negotiated the price of the home down by 50 K, and was also able to leverage mine and my family's construction background to renovate the home efficiently.
What was the outcome?
A multi-unit home that is paying for half of our mortgage and will be cash flowing once we find another home to buy! Also increased the value of the home to around $750 K, which we will be able to leverage as we pay down the mortgage.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Brayden Irwin - Lome Irwin Real Estate
