Part 2 of why I love real estate, especially apartment buildings, the big lift!!

Renovations in apartment buildings pay big bucks. We have just completed a top to bottom renovation of our 2 story townhome style apartment in Beaumont Place. The renovation cost was $8700 and we were able to bring the rent up $275 from $975 to $1250 per month. What’s the big deal? Well this increase alone increases the value of the building by over $50,000! A very respectable 475% return on the renovation cost invested.

How? well this is the magic part of commercial real estate. The value of the property is based almost entirely on the income that it generates.  I anticipate that we will be able to raise rents by $200 per suite x 14 suites, which will increase the value by over $500,000! $200 x 14 suites x 12 months = $33,600. Capitalize that by 6% which is what apartments are selling for these days, and the big lift works out to $560,000.  This is a proven strategy for a win/win situation between tenants, landlords, and the community. The opposite method to make money in real estate of course, slum lording aka. cut expenses.  Stay tuned for part 3!

 

Beaumont Place Suite 107 before and after

Beaumont Place Suite 107 before and after

    Success Stories

  • mansard sold out

    Mansard Terrace

    710 8th Street East, Saskatoon Saskatchewan

    Will purchase October 2017 $1,470,000 with a 65% loan @3.25% for 5 years

    Cash invested $630,000

    ROI: Please contact for more information

    Sold for: Subscription filled - Currently Active

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  • marsin Sold out

    Marsin Apartments

    2440 Louise Avenue, Saskatoon Saskatchewan

    Will purchase October 2016 $1,200,000 with a 75% loan @3% for 5 years

    Cash invested $420,000

    ROI: Please contact for more info

    Sold for: Currently Active

    View Project ➝
  • chaben

    Chaben Place

    3609 Chaben Place, Saskatoon Saskatchewan

    Purchase March 2016 for $2,710,000 with 75% loan at 3.4% for 5 years

    Cash invested  $840,000

    8 investors to share in the profit share and equity

     

    ROI: Please contact for more info

    Sold for: Currently Active

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  • beaumont-place

    Beaumont Place

    4902 50th Avenue Beaumont Alberta

    Purchased December 2014  $2,900,000 with 75% loan at 3.55% for 3 years

    Appraised for  $3,050,000 (October 2014 appraisal)

    Current Value (July 2016) $3,700,000

    Cash invested  $900,000

    ROI: Please contact for more info

    Sold for: Currently Active

    View Project ➝
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