Investing Strategy to Finish Condo Basement

Kevin13560

New Forum Member
Registered
I've been preparing to purchase my second investment property. I have been educating myself for the last few months and plan to invest with my brother. My brother has said he won't be ready to invest until summer this year. In the meantime my tenant in my current rental property has informed me she will be moving out on May 1st. I'm looking at this as an opportunity to finish the basement on this property. It is plumed for a toilet and is really just a big empty square so I don't think it will be a lot of work or cost all that much to finish. I'm thinking if I finish it with an added bathroom I may need to use the money I had planned for my next property, but this reno should increase my cash flow on the existing property and give me equity I can pull out of this rental to return the money I spend and allow me to invest this summer as planned with my brother.

What I would like to know is if this is a good plan, and what exactly would be necessary to meet the definition of a finished basement. Is it just carpet, drywall, paint kind of thing or are there strict requirements? Then when I go to refinance do I talk to my bank about inspecting the reno and appraising?

Thank you and any suggestions for good contractors would also be appreciated.
 

Thomas Beyer

Senior Forum Member
REIN Member
Is this for a separate suite or for more living space to one family renting up AND down?

What’s this town’s basement suite rental policy ?

A refi triggers an automatically appraisal which means a quick walk through by appraiser.


Sent from my iPhone using myREINspace
 

KeithnCalgary

Mortgage Associate & REIA
REIN Member
There are lenders that will do Refinance plus improvements. If you are working with a knowledgeable mortgage broker then they should be able to help direct you in this process. If not then get in touch with me and I will help you.

Keith Uthe, REIA
Mortgage Alliance Enrich Mortgage Group
keith@enrichmortgage.ca
 
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