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.

Recommended Reading: Rich Dad Poor Dad

My interest for real estate may not have been realized without me discovering Robert Kiyosaki’s Rich Dad, Poor Dad. In the book, Robert describes how his two fathers, one rich and less educated and the other poor but highly educated, shared their views on money. He further explains how most people learn to work hard for money... but never to have money work for them. I recommend this book as an essential starting point to anyone who is interested in pursuing financial freedom.