By: Brian Banks – FreedomVest Properties
Investors see good value in suited properties. The three big profit centres are positive monthly cash-flow, paying down your mortgage’s principal and value appreciation over time. These all contribute to your overall return on investment (ROI). Learn more about adding a suited property to your investment portfolio.
Freedom from positive cash-flow
The number one reason to invest in real estate is for the freedom from the positive cash-flow. Properties operating at full potential — filled with tenants, can collect approximately $500/m in positive cash-flow (after all the expenses are covered.) Are you familiar with the hit HGTV show Income Property? The name says it all, they actually produce an income every month. It’s critical to have positive cash flow when investing as it helps to mitigate the risks that come with real estate.
“The best time to plant a tree was 20 years ago, the next best time is today”
Equity gain through mortgage pay down
As you pay down the principal on your mortgage every month, you’re gaining equity in the process. It’s like a savings account that receives contributions every month and builds over time. The beauty of it is — your tenant clients are building it for you. Suited properties are money-making machines that act like piggy banks every month.
This is the value of your home going up over time. Historically in real estate, despite the current market, we’ve seen property values rise. Have a long-term mindset, so you’re able to ride out the storms as the market cycles up and down. The real estate market doesn’t matter as much when you’re in it for the long haul. If you’re short-sighted, you better buy and sell at the right time, or it can be detrimental to your gains.
“Don’t wait to buy real estate, buy real estate and wait”
~ Robert G Allen
Not all homes are set up and laid out for a well functioning secondary suite. The operation and functionality of the property and how it will flow with tenants is crucial. Here are some important things to look for.
Homes with a side door entry into the basement are ideal for developing a well functioning suite. When the stairs to the basement are closed off from the main floor, the main floor still has access to the backyard without interrupting the basement suite tenants. This keeps the units separate and self-contained, ultimately making tenants happier and willing to stay longer.
Back door entries can work, but keep in mind access to the backyard from the main floor will be blocked off. Rear corner doors are preferred over doors positioned in the center of the house.
It’s also a good idea to try and layout the living spaces and bedrooms opposite the suite above or below. This will help with noise control and make for a more pleasant living environment. Special construction materials and techniques are used to help mitigate noise and odour transferring between the suites. When suited properties are designed and laid out properly, you barely even know the other tenants are in the same home.
There is an entire section in the Alberta Building Code specific to suited properties. Make sure to educate yourself on the code requirements as they will impact your design and construction. The term “legal” secondary suite means it has been registered with the city, permitted and passed all required inspections. When completed, the city will issue an Occupancy Permit, and it’s ready for use.
FreedomVest Properties specializes in developing legally suited houses. We provide turnkey, passive income-producing properties to those that don’t have the time, knowledge or desire to do it on their own but want to leverage the power of real estate.
We have opportunities available for people to invest in real estate with a hands-off, passive approach. FreedomVest Properties takes care of all the work from finding, acquiring and renovating the property to managing the tenants and maintenance of the property. We believe in our product so much that we invest and hold suited properties for the long term in our own portfolio.
Diving in alone can be scary and we try to eliminate all those fears that are holding you back by doing it together. Investing in real estate can be very powerful and dramatically change your life if done right, with the right approach and mindset.
Don’t hesitate to reach out and get in contact with us. We want to impact lives and help people secure their financial future by investing in their freedom through real estate. You can check us out on Facebook at our page FreedomVest Properties or email us at email@example.com for more information today.