Don't you just LOVE it when savvy professionals answer questions with practical advice? Whether you're set to flip a house or not, I'm sure we'd all love to know what Scott McGill-a-babe has to say on the subject. He's just SO GOOD at what he does... You can see
Scott McGillivray helping out folks at large in his hit show
Income Property. Finding some extra cash potential in your home never hurts!
From Sylvie:
"We live in western Canada and would like to invest our money in a
property in view of flipping it. Our questions are...1-- Should we
renovate the existing house into a main apt with an extra rental suite
or simply develop the house's basement as added living space? Which
would give us the better return upon resale? 2-- If we have the cash to
do this without a mortgage, is it advisable to use our own money or
should we still go the mortgage route?
Thanks in advance."
Scott suggest: Sylvie,
When I flip properties I do what I call "fail-safe flipping". This means designing and renovating not only to look great but to generate cash flow as a rental. This way, if the flip doesn't go through as planned you can rent it for income -- I love a WIN WIN situation. I would suggest renovating the property with the potential for a basement apartment. If your going to finish the basement anyway put in a separate room and a bathroom, these add value weather or not your space is a rental. Add a small kitchenette and you can list the property as an income property. Either way, be sure to check with local bi-laws and zoning to ensure your renovations are legal and done properly. While interest rates remain low you may want to look at borrowing the money for the renovation and holding on to your cash in case another opportunity presents itself. Good luck.
Scott McGillivray
Income Property
Free advice! How often do you get that in this world? Anyone ready to embark on a flip?
Related: