case analysis help needed---downtown Toronto

[luckyluciano]

QUOTE (invst4profit @ Sep 6 2009, 08:13 PM) http://www.ontariolandlord.ca/forum/

The city is unlikely to crack down on basement dwellers but mid to upper end illegal properties will be targeted.
There is a shortage of affordable housing in the city which is why they will turn a blind eye to home owners adding basement units. In addition to the fact that the city knows most owners can not afford the homes they live without the rental income.
The city of Toronto has created the situation and will not/can not fix it.

Investing in a illegal property is a crap shoot and eventually you will lose likely as the result of a tenant or neighbour complaining.
The quality of tenants in the affordable housing is such that eventually one of them will try to black mail there LL over the illegal unit issue.
If you do not get all the info you need try the link above. It has very experienced LLs mostly in the Toronto area.


Thanx, I did searched on that site and couldn`t find any previous posts. i may have to post there but I have noticed many Toronto investors here and therefore should get satisfactory answers. Thank you for your help.

 

[invst4profit]

This site is mostly, not all but mostly, interested in investors and investing where as the other site is landlords. Much different perspective.

 

[luckyluciano]

Anyone else have any knowledge about these illegal multi-family dwellings in Downtown Toronto? Investors are buying the single familiy home, renovating to meet fire codes, renting for top dollars, and raking in huge returns PLUS paying lowest property taxes because they are zoned as single family. Is there any risk of these being shutdown or is Miller and the city OK with it because of supposed rental shortage. If so, they make great investment returns (7-9% cap rates), ZERO vacancy rates, best tenants, best rents, prestigeous location etc, etc. This trend is mushrooming, there are literally hundred if not thousands of them in the downtown core near subway lines. Anyone know of any of them getting shutdown? There are dozens for sale on MLS and hardly any legal ones! The legal ones are 1 out of 100! Banks and CMHC don`t seem to have a problem with them either as they are financing them constantly for investors.