Real Estate Tip: Look for Properties with a Twist

In a hot real estate market that Vancouver is currently experiencing, it’s difficult to find investment properties that will cashflow. Despite the odds, you may want to look for properties with a twist. The twist may reveal some hidden assets which can offer you some alternative income. If it’s a house or duplex, for example, it may have a shed that can be converted to a carport which can be rented out. For a condo, maybe there is an extra parking stall or locker.

As an example this year, I purchased a 1-bedroom & den condo in downtown Vancouver from a motivated seller. With a 25% downpayment, the cashflow from the rental income was only $20 per month, but I had the option to purchase the unit with 5 registered lockers. I quickly learned that each locker can rent for $70 per month, raising my cashflow to $370 per month. Not only will the lockers appreciate in value, but if the mortgage rates climbed, I would still have enough income to offset the interest payments.