Equity & Flips
Strategic renovations can maximize many things including the number of high quality tenants, monthly rent, appreciation and after renovation value.
They can also leave you with many options on how to proceed with your investment, whether that be to sell the property, pull equity out in a refinance, or continue to hold and maximize the cash flow by adding a second unit.
Why Forced Equity?
Capital
Flipping ain’t easy, but if done right in the right market conditions it can greatly increase your working capital in a relatively short period of time. The key is doing the right renovations that will limit your expense but maximize your return.
Densify
One of our favourite types of renovations is adding another unit to the property. Whether that is in the form of a legal basement apartment, or a legal coach house, adding a second unit will turn one door in two two, increasing profits just as quick.
B.R.R.R.
No not because we are in Canada, but because if a renovation is done right, sometimes it best to flip it back to yourself. After a strategic renovation, and it’s fully rented you can pull your new equity out of the property. Buy.Reno.Rent.Refinance.
Better Tenants
More money more problems right? This isn’t necessarily the case with rentals. When you have a higher quality rental unit you can ask more for monthly rent. A nicer unit will attract higher quality tenants that will take better care of your property.
