190 Bayfield Street, Barrie - Major overhaul of rental unit after long term Tenant moved out.
The total cost of this renovation was approx $20,000. However, we increased the rent on this unit by $350 per month = $4,200 per annum. You might say that would take approx 5 years to recoup the investment. However, using the valuation model of Value = CAP rate/NOI this renovation actually added approx $80,000 to the value of the property. This could allow the owner to refinance and immediately get back the $20,000 or it may allow a total refinancing for another deal. Ask us more about how to lift the value your project and create wealth in real estate.