INVESTMENT REAL ESTATE
Investment property is a time-honoured tool for generating wealth. Our own HoldCo portfolio is always growing, let us help you grow yours! Having successfully completed duplex conversions all the way to planning for 20 unit mid-rise developments we are uniquely positioned to offer advice while having skin in the game ourselves.
WHAT MAKES A GREAT REAL ESTATE INVESTMENT?
It’s the same question founder Jake Benjamins asked himself when he bought his first investment property as a twenty-year-old college student to rent out to his roommates.
The answer has remained essentially unchanged since - target properties with upside that either cash-flow or will provide future cash-flow with intervention. A cash-flowing property is when the rental income is able to cover all the expenses plus principle and interest on the mortgage.
Here’s a look at our top recommendations.
DUPLEXES & TRIPLEXES
If an investor has enough capital for a downpayment but not much more, they’ll likely need to target a smaller operation such as a duplex or triplex (two and three-unit properties) if it’s an older building and subject to rent controls, targeting property with tenant vacancies can be the key to finding a cash-positive or cash-flowing property as vacant units have potential for market-rate rents.
SINGLE FAMILY HOME CONVERSIONS
Converting a single-family property into a multi-family property can have a number of advantages. First and foremost, there are no existing tenancies and an investor can bring in tenants at market-rate rents.
Secondly, they can construct units in a tenant-friendly fashion that increases rent return and provide ease of maintenance. Benjamins Realty has the expertise to assist investors in targeting properties that will allow for duplex and triplex conversions. Single-family conversions are more cost-intensive than an up and running operation but also provide larger rent returns.
MULTI-FAMILY LOW-RISE
For an investor with a strong capital backing or equity in other property, they may want to consider a larger investment property which can range from 6-12 units or even larger. These mid-rise walkup buildings are typically rent-controlled with long-term tenants. They generally offer less than a 3% cap rate and investors will have to rely on either tenant turnover or adding on to the building to generate additional income working towards a cash positive investment. These properties require patience and time and tend to suit an investor with experience.
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