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Basements suites: risks vs rewards

by Sam Perren

180 words (1 minute read)

Originally Published: 2013-12-04

 
sam

 

Hello!

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I recently answered some questions for an investor who is looking at buying a property with an illegal(non conforming) suite.

 

Basically, these types of properties offer higher Cashflow and they can be purchased for similar prices as normal single family homes. Risks include, if caught, big renovation cost to make legal, or ripping out the suite and losing Cashflow.

Solutions if caught include: have a bigger than normal reserve fund, rent as whole house for less Cashflow, make applications to city and complete proper renovations, sell property traditionally, rip out kitchen and rent to students by the room to replace Cashflow , sell as rent-to-own.

Until next time,

About the author: Sam Perren has helped dozens of investment partners aquire real estate, representing over $16Million CAD in purchases with rental income of over $100,000/mo. If you'd like access to Sam's "deal of the week" please click here.