All Forum Posts by: Harrison D.

@Amir Khorrami check zoning to see if you can actually turn in into a "fourplex". The city only allows one secondary dwelling unit in the basement of a duplex. If the units are severed and sit on their own parcel of land, then you could add 2 basement apartments. How did you get to $7200/month in rental income?

Depending on the style of the home, you should look into corrugated steel siding. It's being used in my area but mostly for modern homes. Price is in between vinyl and hardie, and it's extremely durable.

I agree with the vinyl plank as suggested by others. Looks like laminate but it's more water resistant than laminate and hardwood. Very easy to install yourself. In my experience hardwood can get ruined easily if tenants don't clean up water right away. If you do go hardwood I suggest buying a popular brand/style from a major retailer (Home Depot, ect) so you can do some patch work without worrying that the product got discontinued.

Does anyone have any info from a Canadian perspective?

In Ottawa, it will depend of the size of the lot to determine if you can legally have a 3rd unit. With R4E zoning, you must have a 50'x100' lot to legally have a triplex. If the lot is less than 50'x100', but greater than 40'x90', then the city will allow you to add a 3rd unit in the basement only, through the secondary dwelling unit program. Also, if the building was previously a triplex and registered as such, you may have legal non conforming rights (grandfathered rule) to continue to operate the property as a triplex. Zoning can be confusing, but the city of Ottawa's websites help a lot. Message me if you have any more questions!

I would advise against paying the students to do any lawn/snow maintenance. It's just not going to get done properly or on time. It's just another thing for neighbours to complain about (overgrown lawn) especially in certain neighbourhoods like Sandy Hill in which tensions between neighbours and students/landlords are high. Good luck!

sorry yes a call option would hedge against interest rate hikes. 

As Ming Lim mentioned, you have to be creative in how you can maximize the rents. Turning a SFR into a duplex can be a great way to do that. Learn the bylaw requirements for adding secondary dwelling units in your area. If a SFR has a finished basement with a separate entrance, it could be a great opportunity to turn it into a secondary dwelling unit/duplex for a relatively small Reno cost. Goodluck!

I have no experience doing this, but have you looked at CME Interest Rate put options?

The "Problem":

In June, I bought a duplex on a large lot in a gentrifying area with the intention severe the lot into 3 parcels and build 2 spec homes, while keeping the original duplex as a rental. I paid $420k.

I have gone through the city's process for severance and everything has been approved on their end. The only issue is the bank's appraisal on the original duplex after the severance, with a smaller parcel, got valued at $375,000. This means I have to pay down the mortgage ~100k in order to bring the equity back to the required amount. If I do not pay down the equity, then the bank will have a lien on the newly created parcels, so I won't be able to pull a construction loan to commence the 2 spec builds.

The Options:

• Sell the duplex , pay off the mortgage, get the 2 lots free and clear, commence the spec build. This assumes I can get close to $420k duplex on now smaller lot. Could be sold to a landlord looking for appreciation (gentrifying area) but not a huge cash king as it rents for $2150/month. The most obvious buyer to me would be a spec builder, who could tear down the duplex, build 2 homes, potential profit ~200k. 

OR

• Keep the duplex as a rental, sell the newly created parcels, pay down the required equity on the original duplex. Recent comps show potential sale price for both parcels to be $450k. 

OR any suggestions BP may have. I know this is a complicated deal, I hope I clarified things. It's located in Ontario, Canada.