Income Property Episodes
The Real Priority
When Martha and Darryl bought their duplex two years ago, the main floor unit was livable while the upper unit needed a major renovation. To generate some extra income, they moved into the dilapidated top floor apartment and rented out the main floor to visiting professionals. They stay in the lower unit in between visits to renovate the apartment upstairs. Once renovated, the upstairs would become the short-term rental so they could settle into the main floor. After two years of working this disruptive plan, the upper unit is still not finished, and Martha and Darryl are ready to start a family. Scott steps in to help them renovate and update to create an income property.
Awkward Arrangement
Three years ago Sabrina and Daryl bought a 1950s triplex from her father. He had owned it for decades and at some point every member of the family occupied one unit or another. Sabrina and Daryl now live in the middle apartment with their two-year-old son and rent out the upper unit but the lower basement unit has been vacant for months. No one wants to rent the space because of one huge problem with the layout- the bathroom is outside of the apartment in the corridor, which also leads to the shared laundry room. Sabrina and Daryl desperately need to resolve the privacy issue before they can attract the tenant they want and get the rent that the large, bright basement is worth. The reconfiguration is a challenge they just can't seem to lick so they've called on Scott to help solve the problem, get them back on the landlord trail and bring in the rent they are dependent upon.
Setting Priorities
Fifteen years ago Lori and her husband bought an 80-year-old brick duplex in a downtown neighborhood. Now separated, she's raising her three children on her own in a house that needs far more work than Lori has time or money to spend. They have always lived in the upper unit and have rented the main floor apartment. Lori has been a chef for a prestigious restaurant group for several years but has a very modest salary. She is dependent upon the income from downstairs to make ends meet, pay the bills and raise her kids. A couple of years ago she rented the apartment to her brother at a significantly reduced rent. The situation turned out disastrous as he left the apartment in serious disrepair, not to mention an unpaid electricity bill. Lori has since lost a considerable amount of income and cannot afford all of the renovations needed in the apartment. She calls on Scott for help and advice.
Legal And Lovely
Claire and Ryan are high school sweethearts, now married and parents to a two-year-old son. They grew up in this suburban town and dreamed that one day they would raise their own family in their quiet neighborhood. Claire and Ryan decided to take the plunge and buy a home with a basement flat when a relative agreed to live there. This arrangement would help out a family member by asking a modest rent for a decent place and the income would make it possible for them to own a home. A few months in, their relative decided to move out and left the young couple high and dry with a mortgage they could no longer afford. Now they need to make some important changes to the suite so that they can turn it into a legal apartment in order to rent it to a non-family member and earn the income they need to make their monthly housing expenses.
Finally Finished
Barb and Jamie looked at over 50 houses until they finally found an older triplex in a multicultural downtown neighborhood that would make a great home and provide a rental income from the main floor and basement apartments. They started renovating three years ago, doing all of the work themselves, until last year when they had a baby girl. Since then, Jamie has been trying to complete the construction after hours and entirely on his own. They have finally finished their own upper unit but the main floor apartment is still completely gutted and the basement apartment is unoccupied and full of renovation supplies. Not only has the reno taken much longer than expected, it costs almost double what they originally budgeted. Barb and Jamie are emotionally and financially drained and strained by the process. They need to finish the main floor apartment so they can get rental income coming in and finally start to catch up on their big expenditures.
Second Income
For several years Nancy and her husband lived in an apartment while they saved a good down payment for a nice house in an established suburb. Three years ago they finally bought a bungalow that would be a lovely home for their three young children. Six months after they moved in, Nancy's husband was diagnosed with cancer and passed away a few months later. She's now raising her children on her own, with her parents playing a strong supportive role. Nancy is extremely positive about what the future holds, however a second income is needed to help with the present reality of supporting her family. Their partially finished basement apartment has only been used for laundry, storage and as a playroom and Nancy sees it as an opportunity to ease the financial burden of being the sole breadwinner and an opportunity to move forward. The apartment needs to be separated and reconfigured before its ready to rent and Nancy doesn't know where to begin.
Getting Started
Dale and Erin had a plan to buy a house, then get married. They bought a detached house in a rediscovered suburb first and now can't afford the rest. Erin's large student loan means that right now she cannot contribute to the mortgage or the bills- never mind their wedding dreams. The good news is that this house has a basement rental unit. However, it's a weird and woodsy pine paradise with an abundance of out-dated, custom woodwork by the previous owner. Dale and Erin feel it needs to be refreshed and a lot of details, including a cedar sauna, have to be re-jigged before this apartment will appeal to the right tenant. While Dale and Erin are practical people, they are completely inexperienced when it comes to renovations and rentals.
The Final Push
Jessica was on vacation in Mexico when she and Manny met. Within hours they were smitten, within weeks they were committed, and after two years, and lots of red tape, they were married. Manny was able to settle down with Jessica in Toronto. They bought an old Victorian duplex making it affordable if they lived in one unit and rented out the other. The year before, their first tenants moved out and Manny worked diligently on updating the property. They made a good start, but work has come to a standstill as Manny has found a good job in his field. Now they're both working long hours, plus Jessica is going to night school to complete her degree? and this partially renovated space remains completely unrentable. Their mortgage financing is based on the income from this apartment, so it is essential that Manny and Jessica get this apartment finished for new tenants. They need help to give this job the push it needs to post this listing.
Basement Bill Payer
One very important thing Melanie and Pavan had in common when they first met was that they both loved Jack Russell Terriers. They're now married and living in the modest, mid-century bungalow that they bought from Pavan's mother. The house had an occupied, separate basement apartment, which helped to keep them ahead of the mortgage payments. When the tenant moved out, Pavan's sister moved in and that's when they discovered the problems with the apartment. When she left over a year ago, they planned to soundproof and upgrade the out-dated unit, however, neither one of them is handy and they didn't know where to start so they procrastinated. The extra income didn't seem like an urgent priority until several months ago when their dog became ill. Now with huge vet bills to pay, they're finally motivated to get that apartment renovated and rented so they can pay down their debt and balance their books.
Raw To Refined
Kat and Al were very happy living in this house as tenants but eventually they had saved enough to buy their own home. When they told their landlord that they were ready for the big step to owning a property, he offered to sell them the triplex where they'd lived very happily in the main floor apartment. Not only was the price right, there was a great tenant upstairs and another apartment in the basement so the rental income would almost pay Kat and Al's mortgage entirely. However, the basement apartment suffered from water issues and mold, which meant it had to be gutted and major exterior work done to correct the problem. Now they're ready to turn it from a raw space into a refined home for a new tenant. They've started the work, and done a decent job so far, but with Al working the early morning shift and Kat on the evening shift at her job, plus caring for their two-year-old daughter, there's no time to finish the apartment. It's wearing them down and causing tension between them as they struggle to make the right decisions.
From Gutted To Gorgeous
Chris and HaeLee met in Korea while he was working there. They fell in love, they moved back to Canada and after a few years, with baby Anna on the way they bought a modest house with a rental unit. All along the plan was to live in the upstairs for 5?7 years at which point they would move on to their dream home and keep this one as their retirement plan. It has now been 8 years. They had just signed a lease with a new tenant for the basement apartment and decided to spruce up the upstairs and start their search for a new home when the sewage backed up in the basement, destroying the apartment. Now plans for the upstairs are on hold while they rush to get the basement apartment completely rebuilt for the tenant who is prepared to wait an extra month before moving in. Chris and HaeLee do not have a clue about how to design and create a new apartment from the scratch and they're desperate for direction.
Better Late Than Never
Rachael and Steve are both athletic and love getting off the beaten path in far off lands, but these days their biggest passion is their two young daughters and the adventures of home ownership. A few months before they had their first baby, they decided to give up their tiny inner city loft for a more conventional, fully renovated house with an attractive basement apartment that was ready to rent. They moved in a month after their first child was born. A few weeks later, the basement apartment flooded and mold was discovered. They promptly moved out for three months. When the issue was resolved, they returned and slowly Steve worked after-hours and weekends to reconstruct the parts of the apartment that had to be stripped out and waterproofed. Now with a second daughter and Rachael on maternity leave for a second time, there's no time or energy to renovate, let alone make design decisions. It has been months since Steve has done any work on the apartment. Their high monthly payments and reduced income are making the financial situation completely unmanageable and they are at risk of losing their home if they don't get this apartment rented.
Diamond In The Rough
Brendan is a young lawyer from a small town who has now happily put down roots in the big city. He's drawn to old houses full of character and was very happy renting an apartment in one side of this century old semi-detached duplex. When the other side of the semi-detached duplex came on the market, Brendan followed an old real estate rule? buy the worst house on a good street. The house is divided into an upper and a lower apartment, neither of which have been touched in 40 years and many of the original elements are long past their prime. On the second floor of the house the kitchen is cramped and worn, the bathroom is grotty, several rooms have virtually no lighting, the plaster walls are shabby and the third floor has odd peaks and slopes that challenge its design. Brendan moved in months ago with the intention of living on the modest main floor and basement and renting the upper two-story unit, which offers lots of potential appeal. As a first time homebuyer with no renovation experience, he's looking for direction on how to renovate the space and use his limited funds wisely, attract a great tenant, and ultimately reduce his 35-year mortgage which is scheduled to be paid off close to his 67th birthday. He needs Income Property to show him how.
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