So I was reading this article about the Travelodge on Bronson which is about to be turned into apartment units this weekend….talk about thinking outside the BOX!
I’m always looking at ways of increasing my investors’ real estate portfolio…ever since delving into the world of multi-unit building’s myself, I’ve been fascinated with multi-unit buildings! Perhaps because they have so much potential….their return can be sometimes beyond what you can imagine! Not only that….multi-units tend to be passed down! They go on sale…lets say…”rarely”! And I can understand. The other day I was speaking to an investor friend who owns many buildings downtown and he said to me “Jen, why sell? You have a property that cashflows, your vacancy rate is almost 0%, you can refinance it and buy more properties with the equity, plus…if you sell, you have to pay capital gains!”. So basically….unless you give an amazing offer….and by amazing I truly mean “AMAZING”…most investors are not looking to sell. (There’s always other motives for sure….death in the family….trying to liquidate their assets, etc…)
For the past year, I’ve been looking into building….why? Well…you’re dealing with a brand new properties so you’re less likely to have
2. repairs to be done and
3. well….doesn’t fall under the rent guideline increase.
I found this article very interesting because I would have never thought of purchasing a hotel and renovating it for apartments! It’s brilliant! Not only that…usually you’re looking at $150,000+ per door….when it comes to multi-units. $3M for 30 units….that $100,000 per door! Not bad at all (of course, they’ll have to put in some work to make them apartments).
Thumbs up for GEMSTONE Apartments! Let’s just hope there’s no sign of bedbugs in the building…!
For more info go to: http://www.obj.ca/Real-Estate/Residential/2012-11-29/article-3129646/Travelodge-turning-into-apartments/1