My husband and I live in Nova Scotia and are looking into buying a 2nd home as an income property. We would like to buy an older home and convert it into 2 or more units.
We have no experience with this and would love some advice on what steps we will need to take as well as what contacts we will need to make to ensure we choose the right home.
As a realtor (not in Nova Scotia) I would strongly recommend that you get a local and reputable agent to first give you a value on the home you are considering, both before and after you the improvements. He or she will also be able to give you an idea of market rent in the area you are condsidering.Next, have a reponsible person, who is familiar with local building and residential codes, advise you if, in fact the multi family dwelling is or can be legal.
AFter all this, check with your financial institution. Mortgages, if you need one) are usually at a higher interest rate and require a larger down payment for CMHA approval.
Personally, I owned several income homes and sold every last one of them! Tenants are almost always those who have no money or can't afford even 5% down payment. That's just my opinion, Others have had great success but be prepared for the late night calls about taps and toilets. They only leak after 10 PM.
If you want to talk with me, send me a quick e-mail. I can ppossibly help with a recommendation of a colleague in your area. I am actually hoping to move to NS myself and looking in Annapolis Valley somewhere.
Best of luck and do your homework.
I would suggest purchasing an income home within close proximity to a college and/or university. The ROI will significantly be higher than that of a typical rental.
Steve Soper, Owner
Mr. Handyman of Richmond Hill and Southwest Markham
346 Newkirk Rd., Unit 9
Richmond Hill, ON. L4C 0A9
Tel: (289) 806-4757
Fax: (289) 806-4758
As an individual with experience of Real estate (wife) My self experienced Home Inspector ( i do not inspect her deal houses as a professional) and a general contractor back ground, can tell you that each house , each location is unique. I will be speaking from Toronto experience.
First get a very patience Real Estate agent, choose the First income property close to your primary residence. Make a team of individual professionals like home inspector, lawyer, mortgage broker, and a contractor , also a handy man ( if you are not one then).
See the property as ROI , think who will stay in this property? How much realistic rent you will get, can that cover all cost? Like mortgage, insurance, maintenance, etc. do you have a cash flow then buy the property.
When finalising the property consider the complete cost of repairs to bring it to rentable level. Check if the zoning allows basement tenants , if you consider as income and later if city do not permit then all your calculations can go wrong and could be in trouble.
There is a lot to share do not hesitate its a great venture and the first one is bit scary, risky, but if you do all RIGHT steps then very soon you will be ready for second and then in five years you can add a good amount of portfolio.
Good luck !
A Budget Construction Ltd
Rationale Home Inspection Inc.
Search the TrustedPros directory and discover the best contractors in your area.Find your home service pro