Real Estate Investment

Strategy Options

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

High

Medium

None

Low-High

Real Estate Agent Hamilton
Real Estate Investment In Hamilton

House Flipping

Invest

“You make money in the buy”

  • Access to cash or private financing (purchase property & renovations)
  • No need to qualify with traditional banks (flip properties generally don’t qualify anyway, and not refinancing)
  • Good for self-employed individuals (making money, but low T4)

Tips

  • Use licensed contractors (don’t DIY), competition is tough, you can’t compete in the market with a DIY job
  • Spend the money where it counts (quartz counters, SS appliances, # of bedrooms and bathrooms, WOW features)
  • Finish it fully (mirrors included, appliances included)
  • STAGE THE HOME – so important in a flip property

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

Low

low

medium

Low-High

woman decides between buying or renting house
Real Estate Investment In Hamilton

Rent To Own

  • You are essentially a ‘private lender’, the buyer picks the property
  • You own the home for X number of years, buyer pays you rent + money towards purchase monthly
  • Good cash flow + lump sum when they cash out
  • Great starting point

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

Medium

Medium

Low

Medium

real estate agency
Real Estate Investment In Hamilton

Student Rentals

  • Good cash flow
  • Higher than average maintenance
  • Use a property management company to handle maintenance
  • Location is important

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

low

Medium

high

Medium

buy and hold
Real Estate Investment In Hamilton

Buy & Hold

  • Long term game
  • Turn key multi-family investment
  • Very hands off
  • Minimal cash flow/cash flow neutral
  • Long term equity growth

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

medium

Medium

medium

Medium

real estate agency
Real Estate Investment In Hamilton

Airbnb

  • Location is important – downtown core/tourist area
  • Need the right property (should be different or unique)
  • Must fully furnish + stock (dishes/cutlery/blankets/bed sheets/etc)
  • Things to consider: cleaning fees, higher than normal maintenance (to keep everything stocked and tidy)
  • Can be a good source of cash flow in the right location

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

high

high

high

high

real estate agency
Real Estate Investment In Hamilton

BRRR

  • Long term game (equity-focused)
  • Lower cash flow + Instant Equity (after refinance)
  • More involved/hands-on (renovations)
  • 6 months from ownership to renters (average)
  • Generally JV partnerships (for refinance purposes)