My first flip: A Toronto freehold townhome

One investor, currently working on his first investment flip, tells CREW readers about his strategy for making hundreds of thousands on one deal.

“I bought last year (in Toronto), so that helped with the market appreciation over the past year. And I made sure to buy something that had an unfinished basement,” Odane Harding, an agent and first-time flipper, told Canadian Real Estate Wealth. “That was what I did originally and (the basement) was the only thing I was going to improve in the house.”

The freehold townhome is located in the Malvern neighbourhood in the Greater Toronto Area and was purchased for $410,000.

While converting the basement into a separate apartment, however, Harding did some research and realized he could make one other major tweak to entice the next buyer.

“I started looking at the price disparity between three bedroom and four bedroom houses and realized there wasn't a big discrepancy there,” he said. “I ended up taking away a bedroom and adding an ensuite bathroom to the master bedroom and an upstairs laundry room.”

He spent $68,300 in renovations – which also included some exterior work and a side entrance -- and hopes to sell the property for over $700,000 – which would be a nice profit for a year’s worth of work.

In Harding’s case, the lucrative investment was a combination of good timing and smart real estate analysis; he was able to purchase a home right before a price boom and analyzed the best way to renovate to entice a would-be buyer.

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COMMENTS

  • by MEM Mickey 2017-04-26 6:10:58 PM

    I hope she remembers that she has to pay Capital gains as she has never lived in the home - This is a Federal Tax- Also if she wants to receive over $700K why has she listed at $588,888- this is unethical to grossly under price as most in the area have sold over $600,000 -so she she should be listed at Current Market Value not last fall's MV- listing this low just draws multiples and is misleading - against RECO ethics code This Sale Representative gives a BAD vibe to the public and a reason others get bad mouthed - She is UNETHICAL and is misleading with her price- the kitchen cabinets do not appear to new but just refinished from the ones that were there when she bought- even her wording is misleading "This Beautifully Renovated Home" it is updated two terms people misuse- Also this is a false statement "Seller Is A Registered Real Estate Agent" NO such thing as a real estate agent - try using - Sales Representative - Ms. Harding you give the name Sales Representative a Bad Name

  • by MK 2017-04-26 8:16:17 PM

    Real Estate reps,do not qualify for capital gain as they are in the "BUSINESS", should pay all gains at full tax rate.
    Hopefully she will hold it long enough for the market to go back down and lose money. when it does sell, some-one should
    send a copy of the info to the CRA

  • by Odane 2017-04-26 8:50:38 PM

    Hi, I'm Odane. I'm a man and it is called a sales strategy to sell a home for top dollar. If I were to sell your home would you like me to price it at value to have the least amount of potential purchasers on offer night? Either way I guess no matter what you do someone has something to say. Sorry I made you look bad miss Mickey. But loving the attention. I must have done something right to garner haters.

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