Triplexes on the Hamilton Mountain
Triplexes in the city are a common sight, but Hamilton’s Mountain area has been somewhat of a challenge when it comes to finding properties suitable for such projects. However, recent changes in city bylaws have opened up exciting opportunities. In less than a year, a bylaw was passed allowing single-family homes to be converted into up to four units, and this property is a prime example of what makes this opportunity special.
My Client’s Unique Triplex Deal on the Mountain
This property is exceptionally rare and a game-changer. It came into focus during a period when the real estate market was at its lowest point, around December 2022 and January 2023. Originally listed at $699,000, it seemed a bit high for a renovation project that would add at least one more unit. Still, the potential was evident. By building rapport with the selling agent and recognizing the seller’s need to close the deal quickly, the property was secured for $615,000. Fast forward to July 2023, and similar properties in terms of size and condition are selling for over $750,000, highlighting the extraordinary value this property represents.
The Vision: From Single-Family to Triplex
This property’s layout is unique, featuring three separate entrances and two electrical panels. It’s this rare setup that makes it an exceptional investment. The plan is to convert it into three brand-new units, each with two bedrooms, and a den that could serve as a secondary bedroom. The Hamilton Mountain area is highly attractive to tenants, making it possible to command rents of up to $2,100 to $2,200 per unit, with an average of around $2,000 per unit. This means a potential monthly income of over $6,000 once the conversion is complete.
Smart Investment and Wealth Building
What sets this property apart is that it’s undergoing a full gut renovation. The resulting units are expected to be superior to many condos on the market and come with the added bonus of parking. This means the client can charge premium rents, providing not only cash flow but also robust appreciation potential.
A Wise Investment Strategy
The current value of this property already surpasses its worth seven months ago, demonstrating the remarkable potential in this project. Triplexes in this area consistently sell for north of $900,000. Considering recent comparables, duplexes in the vicinity are selling between $875,000 to $925,000. This suggests that a conservative appraisal for this triplex could approach $950,000 or more. After refinancing at this value, the client can recoup most of their initial investment, including the down payment, renovation costs, and closing expenses. All of this can be achieved within six months of acquiring the property.
A Strong Investment in a Changing Market
In an ever-evolving market where even duplexes often break even or struggle to cover expenses, a property like this stands out. It not only provides immediate cash flow but also serves as a hedge against future market downturns. With rates gradually rising, this investment is well-equipped to withstand future challenges. Additionally, the project creates instant equity upon purchase and is poised for significant appreciation upon completion.
Take Action: The Key to Success
This client’s success story exemplifies the power of taking action, especially during market uncertainties. By acquiring a property with tremendous potential when many were hesitant, they secured an incredible deal. With the property’s renovation on track, they are set to move onto their next investment. Deals like these are challenging to come by but are where real opportunities lie. It requires a willingness to invest more, take calculated risks, and think creatively.
Your Path to Similar Opportunities
If you’re searching for similar investment properties or have questions about navigating these complex deals, don’t hesitate to reach out. My contact information is below, and I’m here to guide you through the process. In this ever-evolving market, it’s essential to act swiftly and intelligently to secure valuable opportunities. If you’re ready to take action and explore these types of deals, contact me today. I look forward to connecting with you.