The document summarizes renovations done to a property in Ottawa that had fallen into disrepair. The foundation had cracked and leaked for a decade, costing over $25,000 to repair. All units were gutted down to the concrete and rebuilt to modern standards, bringing the rent up 41% and annual cash flow up nearly $14,000 while increasing the property value. The property is now positioned as an excellent long-term investment.

1. Ottawa

2. Here’s an Ottawa property that saw perhaps $20 in
renovations this century. I can appreciate why
owners don’t make renovations and repairs as
needed if they simply don’t have the money but
never understood the mentality that would have
owners suck every dollar they can out of a property
and defer maintenance until the time comes to sell
the property. I think in many cases, the resulting sale
price ends up being far less than what the owner
could have achieved had he kept the property up to
standards. I also believe that an updated and well
maintained property will attract a better group of
tenants; a group that is likely to add to the value of
your property as opposed to detracting from it.

3. The beginning:
• Unfortunately, this property had a crack in the
foundation and had leaked for perhaps a decade.
If it had been fixed when it first cropped up, the
cost would have been a few thousand dollars but
a decade later, the cost was over $25,000!

4. Basement Unit Improvements:
• Given the water damage, the entire basement
unit had to be gutted right down to the concrete
• Not even the studs were salvageable
• This was expected but the engineering and clean
up costs were some $15,000 higher than
budgeted for
• By gutting the unit, it did allow us to redesign the
layout to meet a more modern open concept
style
• It also allowed us to upgrade the electrical and
plumbing and rebuild to meet 2014 building code
and far greater energy efficiency

5. Main Floor Apartment Improvements:
• Original stove and fridge were retained but new
dishwasher added
• New high efficiency stackable washer/dryer
combo added
• Unit was painted with a mixture of neutral and
darker in stock RONA colours to give it a bit more
of a wow factor
• Bathroom sink, tub and toilet installed by
licensed plumbers
• New properly fitting and modern closet,
bathroom and bedroom doors were added
• All light fixtures were replaced with modern high
efficiency LED lights
• Locks for both entrances were changed
• Kitchen and bathroom floor was replaced with
ceramic tile
• Kitchen cupboards replaced with chocolate
coloured in stock Home Depot cabinets
• Extra cabinets were added

6. Main Floor Apartment Improvements:
• Adjustments to existing plumbing was
undertaken to give more cabinet space
• Trim was added to the baseboards to enhance
the character of the unit
• All wall and ceiling cracks, indents and holes were
patched
• Fuse panel was replaced to modern circuit
breakers
• Electrician reviewed and
adjusted/repaired/improved where necessary all
electrical outlets and switches to improve safety
and functionality
• Washer/Dryer outlet added
• Unit had been renting for $820/month all
inclusive; rent is now $1150/month plus hydro
• Unit is now non-smoking

7. Top Floor Apartment Improvements:
• Original stove was retained but new fridge and
dishwasher added
• New high efficiency stackable washer/dryer
combo added
• Unit was painted with a mixture of neutral in
stock RONA colours
• Bathroom sink, tub and toilet installed by
licensed plumbers
• New properly fitting and modern closet,
bathroom and bedroom doors were added
• All light fixtures were replaced with modern high
efficiency LED lights
• Locks for both entrances were changed
• Kitchen and bathroom floor was replaced with
durable click laminate plank and tile
• Kitchen cupboards replaced with chocolate
coloured in stock Home Depot cabinets
• Extra cabinets were added

8. Top Floor Apartment Improvements:
• Adjustments to existing plumbing was
undertaken to give more cabinet space
• Trim was added to the baseboards to enhance
the character of the unit
• All wall and ceiling cracks, indents and holes were
patched
• Fuse panel was replaced to modern circuit
breakers
• Electrician reviewed and
adjusted/repaired/improved where necessary all
electrical outlets and switches to improve safety
and functionality
• Washer/Dryer outlet added
• Exterior bathroom wall reinsulated
• Interior bathroom wall rebuilt due to water
damage
• Unit had been renting for $850/month all
inclusive; rent is now $1150/month plus hydro
• Unit is now non-smoking

9. Summary:
• Original purchase price plus reno costs--
$500,000++
• Rent Roll at the beginning: $28,560 with all
utilities by for by the LL
• Current rent roll $40,200 with hydro paid for by
the tenants (41% improvement plus reduced
utility cost of approximately $2,200/yr--3 units X
12 months X$60 average bill).
• Combined, operating cash flow has improved by
nearly $14,000 per year
• New value of the building--$490,000-$525,000
• Building is now set up to be an excellent long
term buy and hold asset
• It is cash flow positive and is likely to appreciate
at or above market rates unlike the old building
• Over a 10yr span, it should appreciate by more
than $100,000 more than the old building
• That doesn’t include the improved cash flow of
the building

10. Basement Bathroom Before

11. Basement Bathroom During

12. Basement Bathroom After

13. Basement Full View Before

14. Basement unit Full View after

15. Basement Unit Kitchen Before

16. Basement Kitchen After

17. Main Floor Bathroom Before

18. Main Floor Bathroom After

19. Main Floor Kitchen Before

20. Main Floor Kitchen During

21. Main Floor Kitchen After

22. Main Floor Living Room and Hall After

23. Main Floor Bathroom Before

24. Main Floor Bathroom During

25. Main Floor Bathroom After

26. Upper Kitchen Before

27. Upper Kitchen After

28. Upper Bedroom After