Suited Homes Can = Great Monthly Cash Flows
Many of my clients have enjoyed the great positive cash flow that can come from owning a Single Family Home that has been modified to include a separate basement suite. The idea is that an owner can live upstairs, while renting the basement suite out to someone else, thereby supplementing their mortgage payment. This can be a great strategy for a first time home owner who may find it difficult to come up with a mortgage payment all by himself.
Other Clients who are looking at buying homes strictly for revenue purposes find the “suited” home an ideal situation to maximize cash flow on a Real Estate investment. There are really 2 advantages to this scenario from a purely investment strategy point of view.
1. You maximise the revenue due to having 2 renters at the same location. Typically Basement suites will rent for $900-1,100 / month and Main Floors will rent for $1,100-1,300 / month. This equals great positive cash flow…monthly!
2. You minimize your risk exposure by having 2 separate tenants. It is uncommon to have both the tenants vacate at the same time, which means that one can expect some income, even if not fully rented.
If you’d like more information on Real Estate Investment strategies please give me a call… I’d be happy to talk to you about this and a host of other strategies that have helped many of my clients secure their financial future.