About The Project
This is a 900 sq ft bungalow up on a really nice Hamilton Mountain Neighborhood close to schools, parks, shopping and transportation. On this property we updated the main floor and removed the wall between the kitchen and living room to create an open concept. The basement was completely gutted back to the exterior black walls.
To save on the budget instead of replacing the kitchen cabinets on the main floor which were in pretty good shape we painted them and added a new laminate top and white subway tile. On the floors we went with 14mm laminate with grey tones. We then painted all the walls, ceiling and trim.For a final touch new stainless steel appliances were installed.
In the basement it was a complete gut. As i always we went with R23 spray foam for the exterior walls. On this one i also upgraded the service and separated the meters. I often get asked about meter separation and if its 100% separated from each unit. For the most part a good portion with the exception of some circuits being shared are but without gutting the main floor walls its difficult to make it 100% separated. What we make sure we do now is having the A/C on the main floor panel and the Furnace on the basement panel, biggest reason is that the main floor will draw the most in order to cool it.
With the layout we went with a 2 bedroom with walk in closets and a den. The flooring we used a 5.5mm vinyl plank that looked quite amazing. The main living area received some slim line pot-lights to really brighten it up. We went with a modern shaker style white kitchen cabinets and to finish it off, quartz top and white subway tile.
All in all this place turned out really nice and was rented quite quickly. This is a property that we kept ourselves so i can share the numbers with you.
Our purchase price was $420,000 renovations came to $95,000. After refinancing we got back $68,000. Our cash-flow on this property is $650 and that takes into consideration 7% PM fees, $100/month maintenance, plus $100/month insurance and 2.5% vacancy rate. Our cash on cash return is 5.3% and our 5 year ROI based on a 3% yearly appreciation is 17%.
In my books that’s an excellent return and i would do that every time i could. Well that’s it for now and we are off to the next one.
Contact us If you want to know more about secondary suites and how to can profit from them, or if your interested in a hands off cash flowing investment property we are always willing to discuss a JV partnership.
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