Investing in Triplexes and Quads in Hamilton

[OlegP]

Hamilton is one of the best places in Ontario to invest in. I know many people on this forum do just that. Until now I have bought a number of triplexes and quads (not in Hamilton). Searching for a similar property in Hamilton for the last 12 months, I realized that there are only 27(!) properties zoned as legal tri/fourplexes. There are tons of properties used as such, but all of them are zoned as single families or legal duplexes. Finding even a legal non-conforming property is quite a challenge. City of Hamilton has no plans of grandfathering properties with "illegal" use.

Finance institutions now require a zoning certificate, and even Horizon Utilities now requires that if you want to install separate meters.

So where does it leave the investors interested in residential multiplexes (up to a 4-plex)? Does anybody know how to solve this issue?

 

[EdRenkema]

QUOTE (OlegP @ Oct 28 2009, 10:13 PM) Hamilton is one of the best places in Ontario to invest in. I know many people on this forum do just that. Until now I have bought a number of triplexes and quads (not in Hamilton). Searching for a similar property in Hamilton for the last 12 months, I realized that there are only 27(!) properties zoned as legal tri/fourplexes. There are tons of properties used as such, but all of them are zoned as single families or legal duplexes. Finding even a legal non-conforming property is quite a challenge. City of Hamilton has no plans of grandfathering properties with "illegal" use.

Finance institutions now require a zoning certificate, and even Horizon Utilities now requires that if you want to install separate meters.

So where does it leave the investors interested in residential multiplexes (up to a 4-plex)? Does anybody know how to solve this issue?

Go bigger or go smaller.

 

[mflynn]

We have two duplexes (last one purchased in September 08) and one triplex in Hamilton and have not had issues with any of them. None of them has separate meters (I don`t like paying for utilities, but I build it into the cost of the rent). Also, I found a Utilties Agreement form on here that I will use next opportunity I have.

None of them is legal non-conforming, but I have had no issues. I did have a complaint on one of them which was investigated (a neighbour thought that we had done major renovations to convert from a triplex to a fourplex to support student housing -- none of which was true). Anyway, the investigator came and basically, he said that if we had asked for a building permit for the basement, we wouldn`t have received one because the ceiling was too low in some parts but because it had been in use for over a year, he wasn`t going to do anything about it.

Hamilton is strange when it comes to duplexes and triplexes, but I think basically, the city will allow it if you don`t upset the neighbours too much.

As far as the banks go, we didn`t have any trouble last time, but then the listing was written as a single family home.........

Feel free to give me a call if you want more info.

Mary
416-259-8116


QUOTE (OlegP @ Oct 28 2009, 09:13 PM) Hamilton is one of the best places in Ontario to invest in. I know many people on this forum do just that. Until now I have bought a number of triplexes and quads (not in Hamilton). Searching for a similar property in Hamilton for the last 12 months, I realized that there are only 27(!) properties zoned as legal tri/fourplexes. There are tons of properties used as such, but all of them are zoned as single families or legal duplexes. Finding even a legal non-conforming property is quite a challenge. City of Hamilton has no plans of grandfathering properties with "illegal" use.

Finance institutions now require a zoning certificate, and even Horizon Utilities now requires that if you want to install separate meters.

So where does it leave the investors interested in residential multiplexes (up to a 4-plex)? Does anybody know how to solve this issue?

 

[housingrental]

Hi Mary
What happens when the city starts enforcing policy and they shut you down?
Or when something goes wrong at the property?

 

[OlegP]

QUOTE (housingrental @ Oct 31 2009, 10:00 AM) Hi Mary
What happens when the city starts enforcing policy and they shut you down?
Or when something goes wrong at the property?


That`s what I am concerned about too. Besides, I did not have the same luck as Mary. First National did request a zoning certificate when I was closing on a 4-plex in Brantford in January 2009. I was prepared for it because I obtained this certificate during my due diligence on the building.

I doubt the city will start cracking down on illegal multi-plexes because they will have a serious accommodation problem, but on one off basis all it takes is a call from an unhappy neighbour. Assuming I can get financing for an illegal 4-plex in Hamilton, I still need a strategy if something like this occurred.