hope all of you are well. I’m happy to announce that my project with my buddy is finally completed. The project was delayed due to some unforeseen complications but it wasn’t anything we couldn’t handle. Now that everything’s been resolved, the property is now full tenanted and generating a (NET) cash flow of $1400/month. Not bad, considering at the end of the day we spent only $5,000, out of pocket, to purchase this property. No, you didn’t misread, just $5,000! We’re pretty pleased with the outcome and our big cheque FROM the bank!
Even with all the recent changes and uncertainties surrounding the Ontario there are still opportunities to be found that can generate nice a stable healthy return. The key is to think outside the box.
To summarize, we bought a completely run-down investment property, renovated it, brought in new tenants paying higher rents then going back to the bank requesting a re-appraisal in order to do a re-finance. From the re-finance, we managed to receive a cheque from the bank of just over $360,000! This was more than enough to pay off our full renovation costs + our initial deposit which leaves us with a surplus of just over $39,000.
We essentially purchased a house with ZERO MONEY DOWN which in my opinion is mind boggling to me. There are NO TRICKS OR GIMMICKS here, this is the same method many investors use, including Rich Dad Poor Dad (one of the many books we recommend!). Even with the recent rise in interest rates along with all the other changes and uncertainties surrounding the real estate market in Ontario, particularly with detached freehold investment properties, there are still opportunities to be found that can generate lucrative healthy stable returns. The key is to think outside the box.
We’re actually looking for potential investors/joint partners for our next couple of projects. If you’re interested, please feel free to reach out.
Until Next Time!