JAMES KNULL
PART 1: Understanding Suited Houses PART 2: Cornerstones Grant Update PART 3: Buying Unsuited Houses to Renovate PART 4: Landlording Suited Houses for Success.
Illegal = Non-Conforming = No Permits
Proper Zoning Conforms to Fire Safety code Conforms to Building Safety code
Zoning Requirements
Zoning Requirements
Window dimensions ½ Inch drywall throughout suite Smoke detectors Basement ceiling height 77 inches
Electrical inspection Hand rails Stair risers Separate egress
Sufficient parking spots Minimum lot size Mold/Foundation issues Number of furnaces
Approximately 15,000 illegal suites in Edmonton No penalty for not volunteering to permit
You volunteer / apply for permits Complaint by neighbor Complaint by tenant
Step 1 - Development Permit Step 2 - Property Evaluation Step 3 - Evaluation Letter
Step 4 - Building Permit Cornerstones : Apply at this point Step 4a: Complete the work Step 5 - Safety Re inspection
Step 6 - Compliance Letter Cornerstones Money Issued
Timeline: Spring 2013-2016 75 Available grants for pre-existing/year
CHANGES from Cornerstones 1 Flat rate per repair item City to cover only 50% of renovation cost instead of 75% Maximum grant funding of $20,000 per until down from $24,000 Unit tied into affordable housing requirements for 10 years, up from 5 Only 2 grants per applicant per year changed from unlimited.
Goal: pay the same price for house + renovations as you would pay for finished suited house Bonus: Add extra value to the property and realize some sweat equity
Crunching the Numbers Item Cost House Purchase $330,000 Basement Renovation $60,000 Total Cost $390,000 Final Value $420,000 Equity Gain $30,000
Strategy 1: Improvements Plus Mortgage Strategy 2: Line of Credit then Refinance Final value $420,000 80% LTV = $85,000 equity in property Able to pull 80% of 30K out, $24,000
Checklist for Target house Double Garage 1100sf+ Unfinished basement Newer windows, furnace, shingles Separate entrance Well located furnace room
Checklist for Renovation Legal suite 2 furnaces 3BR Basement Suite Quality finishing Lots of light Separate laundry Sound insulation
Old Method: Utilities Agreement Utilities un upper name Upper collects from lower
Flat Fee included in Lease 3BR Upper: 250-300 2BR Upper: 225-250 2BR Lower: 200-250 1BR Lower: 175-200
Old Method: 1 time Pet Fee or Pet Deposit No pets allowed!
Flat fee per month for pets $50 per pet first pet $30 for each additional pet
Work Schedule Kids / Bedtime Typical Weekend Yard Usage Parking Needs Lifestyle Ask Extra Questions When Screening!
Rental History Work History Facebook Credit Check Gut Feel
Ask questions before you book showings What would your references say? Why are you moving? How do you plan to pay the rent? How long were you at your last place? Tell me your story
Tenant Dominate Buying Motives 1: Curb Appeal 2: Secure Feel 3: First impression walking door
Fun headlines Unique incentives Sell benefits Open house showings
Start selling over the phone Sell yourself as a landlord Have them come ready to make a decision
Have them sign non-refundable Give them a receipt Inform them Via email they re approved
www.jamesknull.com 780-695-3214