Come along as we explore a Toronto investment property renovation project led by our sales representative, Billy Hsu.
What makes this project special? Last summer, despite uncertain Toronto real estate market conditions, Billy made a savvy move and snagged an amazing deal.
Though it may look like an ordinary Toronto bungalow, this property is much larger than it seems, and Billy managed to create 3 units from it, resulting in significant investment cash flow.
Watch this video to learn all about this Toronto bungalow investment property transformation!
Toronto 3 Unit Investment Property Walk-Through
3 Bedroom Front Unit: It’s a three-bedroom, one-bath setup in the front unit of the home. What Billy did here to make it work was open up the space a little more, allowing for an additional bedroom. What worked out really well was that there are almost no hallways, allowing Billy to maximize bedrooms and rentable space in this Toronto rental unit.
2 Bedroom Rear Unit: Billy managed to get two bedrooms out of the back part of the main floor, creating a new 2 bedroom rear rental unit in Toronto.
3 Bedroom Basement Unit: This is a three-bedroom Toronot basement apartment that was previously unfinished space. With some HVAC upgrades and panel adjustments, Billy transformed it into a desirable discounted basement 3 bedroom unit.
Crunching the Numbers
From the initial purchase price to the renovation costs and projected rental income, understanding the financial dynamics is crucial for assessing any Toronto real estate investment’s viability and potential returns.
Billy purchased this Toronto investment property for around $800,000 and put in close to $200,000 in renovations.
The rental units are similarly finished compared to Toronto condos but lack the added condo amenities, so rents here are priced at a slight discount to nearby condo rents.
Billy aimed to re-finance it for at least the purchase price plus renovations when he purchased the Toronto home.
However, with the current Toronto real estate market conditions picking up against the backdrop of lowering fixed interest rates, there’s a higher likelihood for a bigger valuation and cash out refinance due to value-add equity gain.
Successful Real Estate Investing In Any Toronto Market
Reflecting on the project, Billy notes a tweak for next time, like avoiding putting all of the appliances together!
For those wanting to take on similar projects, Billy emphasizes effective project management with trades to minimize redoing work and completing the project on time and on budget.
Billy’s decision to invest in Toronto real estate during a period of market uncertainty was driven by a combination of calculated risk-taking and confidence in his financial calculations.
By focusing on strong cash flow, his position remains resilient in the face of uncertainty which sets him up for success despite prevailing uncertain real estate market conditions.
Considering recent Toronto real estate market shifts with lower fixed mortgage rates and less uncertainty, there’s lower risk today with slightly lower expected returns, offering a reasonable tradeoff.
How We Can Help
Now, if you’re curious about what kind of renovation investment projects you can buy on the Toronto market these days, just connect with our team.
Our real estate sales brokerage is all about investing in houses in Toronto, so we’ll point you to the best opportunities on the market whenever you’re ready to invest.
While you’ll take charge of managing the project, we’ve got your back every step of the way from planning it out, link you up with our trusted network of trades contacts, and be there to help you troubleshoot whenever you need it.
We know our numbers well and we’ll crunch it for you and ultimately help you optimize your investment returns bases on your requirements.
To discuss your private real estate situation with us, just go to this link below to set up a time to chat!
