PROPERTY SEVEN RENOVATIONS - The Plan Part One

The time has come to significantly improve Property SEVEN via extensive renovations.

We have approx $24,000.00 budget set aside.

Mandatory renovation requirements are as follows:

1. We must correct the structural deficiencies such as the foundation by the driveway. This may or may not become very complicated & possibly very expensive as they will need to dig around and then determine the extent of the work that needs to be completed.
2. We must also re-point the exterior brick as the concrete between bricks is 'soft' and if scraped it crumples into dust and falls to the ground.
3. The warped hardwood flooring must be replaced, especially the bubble that formed once the basement joyce was raised. this must be lowered & levelled. Will use oak hardwood flooring, the place will look fantastic.
4. Chimney to become redundant and to be taken down

Great ROI Bang for the buck renovations to be completed with remainding funds:

1. We will be buying a new beautiful front door for Property EIGHT - OUR HOME. Then, we walk over the existing front door, which is a very, very nice one as well, over to Property SEVEN to install that one there. Both properties benefit significantly for the price of one door. New top-of-the-line door handles to be installed.
2. New light fixtures to be installed in ALL the bedrooms replacing the existing 1920's original light fixtures. Costco has semi-flush lights on sale for $30.00 each...
3. Brand new windows to replace old unfunctional windows. Installed by the person who installed Property SIX windows?
4. Ikea kitchen to be added for cheap. Labour provided by our reliable and very experienced handyman who charges roughly $25 an hour. New flooring to be added as well.
5. Brand new interior doors to be added.
6. Property to be significantly weeded and trimmed while taking out some unnecessary bushes which are trapping moisture against the structure.

Updated Property Info and Cashflow

Here is the updated Cashflow situation for all properties.

Click on the side links for details on each property for more information. I'll start with the total cashflow situation:Here is the cashflow breakdown according to each property: Here are more property breakdowns: Cashflow is still negative but much improved from before...

Property SEVEN

Our Seventh Property Purchased: London, Ontario December 2006. I love this property. I know anyone looking at this would wonder why because it is so heavily cash flow negative. I would think that. However, I found this property located in London's most attractive neighbourhood. Right square in the middle of it. And the sellers needed to get out as they had committed to another purchase firm and absolutely had to sell. I watched as the price fell during the holiday slow season and made an offer.

We had no down payment though. That was our major obstacle. But we factored the current bank rates on the full 100% purchase price and it cash flowed well. And that was setting the rent below market as determined through our research on other SFH in the area and their current rents.

In the end, we got 100% financing through a risky higher interest trust company and we made the conscious decision to go cash flow negative for a couple of years until equity built up and we could move the mortgage to a better place with proper bank interest rates and thus lower payments. Plus, we figured that we'd be saving from our paychecks each month about $300 anyways as means for a down payment for the same type of opportunity. This just meant we got property ownership on a great piece of real estate earlier.

So our objective with Property SEVEN was/is to suffer through the negative cash experience for a couple of years, then transfer to a lower interest place with lower monthly payments where rent will service all expenses.