"Building an income suite is the most profitable kind of homeowner reno, one that creates real value for your home," says the host of Income Property”
What should people look for in an income property? A separate entrance for privacy and convenience, good ceiling height ( "if it's too low for you to live in, it's too low to rent"), and an extra parking spot which could be worth up to $100 per month.
"My bottom line is if it's going to cost more than two years' worth of rent, don't even bother," Mr. McGillivray insists. "If I have to spend, say, $24,000 on a place, I must get a thousand dollars worth of rent per month. That way, my space has paid itself off in two years. The rest is gravy."
The Income Property Process: Scott McGillivray's Top 5 Tips
1. Your income property should meet your own standards. Tenants won't settle for less than you would. Fix the place up so you can charge more and attract better tenants.
2. Don't skimp on the drywall, especially on the ceiling. Not only as a fire barrier between you and your housemates, but also as an extra layer of sound-proofing.
3. When renovating your space, add 25% over a professionally quoted budget. If you do go over, at least you were expecting it. If not, nothing lost.
4. Look for an income property that's close to home, ideally within an hour's drive of where you live. It has to be convenient for you to check up on and manage.
5. Beware, houses are like onions. The more layers you peel back, especially while demolishing, the more problems you're likely to find. Count on hidden issues like mould, live wires and any other hidden costs, just in case.
Excerpt taken from http://www.hgtv.ca
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