What house in toronto are you buying for $1m and using $240k to convert to 4 units? That's too low. $1m will get you a bungalow. how do you get that to 4 units without adding another storey or storeys and spending $240k x 3
You’re pulling all your investment capital out (and do this again if you want!) on refi - break even on the residential mortgage or positive cash flow on the MLI. After that, you still own 20% equity on the higher value home and continue to gain from long term appreciation. It’s not for everyone but it makes sense to us!
I have a development company in Calgary and the best way to use this program is to develop. You don't have to wait the 24 months when developing. It's also easy to qualify for the 95%. One of our existing projects is $3M, you only need about $300-400K during construction and we only need to leave $150,000 in the deal when we reach occupancy. The yield makes it a no brainer.
CMHC MLI Select Mortgage details here: www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/multi-unit-insurance/mliselect
This is a great video - keep up the great work!
Big thanks for checking out the video!
Do you have to pay developmental fees for a 4 + 1, so if you add a garden suite do you have to pay developmental fees? Thanks
Garden suite DCs can be deferred and the main house up to a fourplex is waived
Great content...!!
What house in toronto are you buying for $1m and using $240k to convert to 4 units? That's too low. $1m will get you a bungalow. how do you get that to 4 units without adding another storey or storeys and spending $240k x 3
Not true! This is possible especially during the much quieter market in November 2023 - Jan 2024 for the deals we helped clients purchase.
These numbers sound nuts, who would take a risk like that to break even cash flow at best
You’re pulling all your investment capital out (and do this again if you want!) on refi - break even on the residential mortgage or positive cash flow on the MLI. After that, you still own 20% equity on the higher value home and continue to gain from long term appreciation. It’s not for everyone but it makes sense to us!
Thanks for the reply but good luck trying to get a buyer to take the leap.
It’s not for everyone but it’s a well known strategy called the BRRRR in the real estate investing world. Video coming soon!
I have a development company in Calgary and the best way to use this program is to develop. You don't have to wait the 24 months when developing. It's also easy to qualify for the 95%. One of our existing projects is $3M, you only need about $300-400K during construction and we only need to leave $150,000 in the deal when we reach occupancy. The yield makes it a no brainer.
What's your company called?