Legal Duplex

I’m a big fun of legal multiplex investment property , I think they are versatile  and great foodie long term buy and hold investment product.

I came to show a legal duplex on 1095 Dundas st. west today with my client who’s buying an investment property to hold for long time as her retirement income pro folio. At meanwhile, her son is going to University of Toronto in September so she is planning to let him occupy one room and rents out the rest of the house. Considering paying  $2000 per one bedroom condo which is completely going to the drain, she will use the rents collected for the below unit to subsidize  the expenses of mortgage.

This property is a conversion of a single family house into legal two units, The biggest selling point of the legal status  of the two units.

It’s often  to see multi units in single property on the listings stated there are more one unit, but 90% of the time it’s not legal which means not properly registered with the city and not renovated properly.

Let’s take a closer look at the benefit of legal Duplex.

1. First and foremost : The obvious benefit of two units investment property is Increasing the cash flow For this particular  property, it could be rented for $4000 per month as a regular 4 Bedroom 4 Bathroom house. After the conversion , the top floor could be rented for $2600 / month and the lower unit for another $ 2500 / month. The total rents would be $2600 + $ 2500= $ 5100. Compare to $4000, you are making $1100 more per month.

2. It also provide extra layer of perfection against the risk of tenant default. The default rate of a single tenant occupied the whole house will let you lose the income completely. Be spreading the risks to two tenants, even if one family does pay for the rent, you are still partially covered expanses by the other unit.

3. priceless for a piece of mind 

I always suggest client to look for legalized investment property if their plan is buying and hold for long period time. You do pay for the premium for the “legal status “, but in long run it gives both you and landlord and tenants the peace of mind that there is legal fire break in case of emergency. It’s also easier to get the house insured and secure a mortgage. 

4. Premium for Resale value 

People like to pay more legal duplex than a two-unit non-conforming property (non-registered with the city). you will alleys get your money back.

5   It’s versatile 

it’s a great options for first time buyer to get into the “ free hold “ property  type while another unit help share the cost . Conversion of family home could be a solution to multi - generation living arrangements, put grown up children or elder parents into one unit while enjoys privacy. In my case, can use it as the retirement pied-à-terre. I enjoy the life style of low ground living  but don’t  want to my house sit empty when I’m away.

If you are interested in purchasing a legal duplex or multiplex , or even thinking about converting your property into legal multiplex ,  please make sure to contact me , I have a great term to help you.