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Cluke | 12 Nov 2015, 06:03 PM Agree 0
Hello,

I am in the process of looking for my first investment property. I see a lot of postings on mls that classify properties as duplexed and or triplexes, but other that just say 2 or 3 residential unit. Is this an indication that the property may not be legal. For example if a 3 unit building is located in an area that is only zoned for R2 (2 Units), would that be an indication to stay away from those types of properties? Thank you for all your help

Kind regards
  • CSL | 15 Nov 2015, 10:24 PM Agree 0
    Hello,

    Looks like you're looking at rental properties. Are you interested at all in wholesaling... buying a contract? I find rehab properties for real estate investors. I locate and wholesale to said investors. At this present time I have a suitable lead on a two family semi in the Nork York area with a potential net profit of $60K.

    Ariela

    a.rozner@rogers.com
  • Travis Royle | 11 Dec 2015, 12:05 AM Agree 0
    If it isn't being advertised as a rental property, then it's most likely not legal. I have attached my info if you are looking for some advise. If this is your first time, you should limit risks by doing all the due diligence possible.

    Travis Royle
    Sales representative
    Century 21 Lanthorn
    613-403-4140
  • Michael Ponte | 03 Jun 2016, 02:21 PM Agree 0
    Hi There,

    Just to follow up with others have said, this looks to not be legal. The way you need to look at this is confirm with the city the zoning in the area and what is the max units in a building and as the question if this property can be converted into a triplex. If the answer is no then you know what to do.

    If the property can perform well as a duplex from a numbers perspective then proceed but you really should take into account the third unit just incase it does get shut down. Secondly, you should also account in your reserve funds for the possibility of removing this 3rd unit incase the City asks you to do so. Their can be some significant costs to this so you should have this in your budget.

    The seller will always use the income approach when evaluating their illegal triplex purchase price but you really can not do this. Use comparables of duplexes and in your negotiations you have to communicate the same to the seller that triplex numbers cannot be used as it's illegal.

    At the end of the day, you need to protect yourself and secondly really have a good luck at your numbers before proceeding.

    I hope that helps. Please don't hesitate in reaching out if I can be of any further assistance.

    Good luck with your real estate investing journey.

    Regards,



    Michael Ponte
    Prosperity Real Estate Investments Ltd.
    Phone: 604-882-6901
    Email: mponte@prosperityinvestments.ca

    www.ProsperityInvestments.ca

    Facebook: https://www.facebook.com/ProsperityREI/
    Twitter: https://twitter.com/PROSPERITY_REI
    Clarity: https://clarity.fm/michael-ponte
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