Calgary – Sunalta
Our first project, and still in our portfolio, is a 1912 railway house, of which we took possession in early January 2012. This property was made into three suites in the 1950’s and has been grandfathered into current building code.
Before purchasing this property, we did our due diligence of ensuring the property would have positive cash flow on the financial side, and good structural integrity through a comprehensive building inspection.
The building inspection uncovered knob-and-tubing electrical (60Amp service), poor insulation, and some minor roof leaks. This is to be expected in a century home so we budgeted for this inevitability. The most important thing we were looking for was a solid foundation and bones, which it still had (make sure to take a screwdriver with you when viewing any home).
Phase One: removed and upgraded attic insulation, replaced the eaves and drainage, replaced the knob and tube and upgraded to 100 Amp service, repainted inside and out throughout the main floor and basement. We were able to safely rent out the basement and top floor suites upon completion of this phase.
Phase Two: renovated the main floor suite, including floors, fixtures, bathroom, and kitchen. We also built a backyard deck and did minor landscaping.
Phase Three: completed renovation of the top floor suite, including insulation, floors, fixtures, bathroom, bedroom closets, and kitchen.
Phase Four: (not started yet) will include redoing the front porch and installing an alternative walkway around the other side of the house for easier access to the basement suite.
In summary, it is important to renovate to the type of tenant you desire, balanced with renovations that are reflective of the level of community development in which the property resides. This analysis is crucial for all of our investments.