Hello Everyone,
This is Daniel Kim with Tyler McLay Realty Group.
In today's post, I'd like to discuss a recent deal as a case study on finding investment deals.
Here, I will share with you my strategies of:
1. How to find the right investment property
2. Investment property analysis
3. Current Available Opportunities
My client is a seasoned developer. He has purchased several properties with me in the past, and continued to work with me in finding further viable project sites. This was a record-setting purchase price on a multi-million dollar street.
Purchased: 1180 Glengrove Avenue, September 19th, 2022 for $795,000
There has never been a sale of a property under $1 million on Glengrove Avenue in the past two years.
This lot on Glengrove Avenue is spacious enough to yield two detached homes.
Only requiring 20ft of frontage for the rendering above, once completed, may conservatively each sell anywhere from $3MM to $4MM depending on the level of finishes.
Finding the right investment property is not a one-size fits all. Everyone has varying levels of capital to work with, as well as varying financial goals and outcomes. Permits and lawyer fees alone would cost close to $100,000. Architect fees & builder costs are an estimated $3.5MM for a project like the rendering.
The average investor may not be interested in a complete teardown/rebuild. There are many investment opportunities that would cash flow with forced appreciation.
How do you find properties like this?
Contact me, and I will send you listings. Alternatively, you can search yourself online daily to look out for the following indicators. An obvious way to find these deals is to search for the lowest price for the lot size you need to rebuild, in the specific area you want to build on.
Not having any photos of the interior is a red flag that a property may sell for less than it is likely valued at.
As a Realtor representing a sale, I would always show as much detail of the property, professionally cleaned, staged and photographed to maximize the sale price. If the listing does not have detailed photos, this is the one to check out as the intention may be to hide undesirable qualities of the home.
This brings me to my next point. We are in a balanced market that favours the buyers. I recommend submitting offers with conditions that will agree to a home inspection & other measures to protect you, as the buyer. If you require a recommendation, our network includes the most seasoned veterans of the industry that we closely work with to simplify the purchasing process.
Outcomes of the home inspections may be a tool to re-negotiate the terms to your favour. Working with an experienced Realtor is key to change the terms to your favour or even negotiate a better price.
Detached/Semi/Condos - depending on the purchaser's individual financial goals and reasons, this is a case-by-case scenario. Detached prices have fallen most this year, and I would recommend it to be the best way to maximize returns if you have capital to deploy. If not, in the long term, staying in the market is always better than staying out. Semi-detached properties have less flexibility in terms of forced appreciation when compared to detached, but renovations can be completed & leased out in this hot rental market. Condominium investment in core Toronto is still a recommended long-term capital appreciation play. Immigration targets, heart of Canada's tech and finance, density. It is the same narrative that we are still drastically under-supplied in Toronto.
Finding the right building with reasonable condo maintenance fees is another important consideration. Look into which utilities are included in the condo fees, and whether the condominium appears well kept in communal areas including hallways and elevators. With my services, a status certificate review with a lawyer is included and recommended to examine the financial health of the condo corporation.
Current opportunity
910 Beechwood Avenue, Mississauga - Off-Market, soon to be listed with an offer date at $999,000
Bungalow, 25 ft x 125 ft lot, by Lakefront Promenade
Lake views from third floor terrace and bedroom, steps to the lakefront park.
Permits submitted & Drawings Available
Call me now to get started!
Daniel Kim
437-343-4999