This single‑family residence is nestled in the Community of Cimarron. Within walking distance of schools, parks, and shopping. This property has a great draw to young families and/or professionals. S.O.M. Investments has purchased this bungalow with the intentions of legalizing the basement into a secondary suite through the Town of Okotoks. S.O.M. Investments is currently awaiting zoning and development approval which will be decided on May 30, 2018.
The house has a separate entrance at the back of the house which allows for separation of the two units. However, SOM Investments will be going a step further by putting in a walk out staircase to the new unit to obtain complete separation of both units. The upstairs requires minimal renovations. The basement is completely unfinished which offers plenty of options. The basement will become a fully separate 1 bedroom, 1 bath basement suite. Once the renovations are complete, S.O.M. Investment will be obtaining a traditional lender on the property or possibly working with a joint venture partner and keeping this one in their portfolio. This will be S.O.M.’s 10th Rental Property, and 6th up and down property.
This property was purchased for $295,000 (below the listing amount of $325,000). Gaining approx. $30,000 in equity at closing. Once the renovations are complete over 3 months, the market value (based on market comparable in the area) for the property is estimated between $400,000 – $415,000, increasing the equity by a minimum of $100,000.
The property is being held by a hard money lender in 1st Position. We are currently looking for one or two investors who are interested in lending on the renovation and holding costs for this project for an amount of $60,000 – $80,000 up to a maximum of six (6) month term. These funds will be secured by promissory note, insurance and registered on title.
Closing Date: February 21, 2018
Loan Amount Requested: $60,000 – $80,000
Term: 6 Months
Style of Property: Bungalow
Square footage: 1,006
Exit Strategy: Property is being refinanced at completion of project to a traditional Lender. Pre-approval already obtained.