All hail the Duplex Queen! 😉
Tammy DiTomaso, one of the lead real estate salespeople and investor coaches on the iWIN Real Estate team, helped her clients through 20 duplex conversions in 2019. Sheâ€™s lovingly been dubbed the â€œDuplex Queen.â€
If you want real time data and info on duplex conversions as a real estate investing strategy, especially in Hamilton, Tammyâ€™s your woman. Now she dishes on exactly what her clients are paying and receiving in rent for their duplex conversions in Hamilton.
What are typical prices right now?
House prices for a typical bungalow in Hamilton (the ones we look at to convert to a legal duplex) is going to cost you at least $500,000.
What are typical expenses right now?
Renovations can run you anywhere between $90,000 to $100,000 to convert the basement to a legal secondary suite. Additional costs could be:
- Any updating on the main floor – up to approx $30,000.
- Expanding the driveway – $5,000.
- Permits with drawings – $5,000.
How long does it take on average to search, see, offer and close on a property right now?
This really depends. On average, we are writing offers with 60 days until closing, but some deals take longer, others are shorter.
Now, if I’m talking to a new client that is ready to purchase (meaning they are approved for financing), then I’d say the whole process, on average, might take 3 – 4 months. That includes searching, offering, and waiting to close.
What has COVID done to this investment strategy so far?
Showings are more challenging. We often have to fill out forms or waivers related to COVID and many properties won’t allow any overlapping showings. The permit process was definitely slower, but we have seen an improvement. Contracting work was on hold, then delayed, but now itâ€™s all moving forward.
Any other notes or stories you can think of that are up to date and relevant.
Even though the prices have jumped, big-time, we are still managing to find some great properties for our buyer investors. Our rents are solid and we are continuing to see great cash flow numbers.
Rents for a basement suite can be between $1400 and $1600. Main floors are renting anywhere between $1600 and $1800. Total cash flow after all the work is done can be between $300 and $600 per month.
Those cash flow numbers may be hard to believe after seeing all the cash you have to put into a duplex conversion project. But remember, youâ€™re adding a lot of value by creating another unit for a couple or for a family to live in, and you can get paid well for creating that value.
How do I learn more about duplex conversions?
Every month, we teach a free, basement suite conversion class. Itâ€™s called, â€œHow a Beginner Can Start Building Wealth Through Real Estate.â€ Anyone is welcome to join. We show you the little secrets and quirks of finding, buying, renovating and refinancing duplex conversion projects.
If youâ€™d like to sign up, for our next class, click here and look for the next â€œHow a Beginner Can Start Building Wealth Through Real Estateâ€ class.