Garden Suites as Rental Property
Building a secondary dwelling in the Greater Toronto Area is an excellent way to earn extra income that can cover your mortgage, with a surplus.
It opens an opportunity to borrow money for construction, cover the costs with rent, increase your property value and earn extra money.
Garden Suites are an opportunity maximize density of single home residence neighborhoods, that benefits rent seekers as well as homeowners.
Each garden suite building can be rented out for $2000-$3000 per month, a far better investment than purchasing a new condo unit. Here’s how:
Short Term Rental
Renting out a garden suite as a short term rental unit can be highly profitable, potentially earning up to $150-$250 per day before management costs and expenses.
Long Term Rental
Hire a real estate agent to help find long term tenant. Garden suites are great alternative options for apartments, condos and basement units.
Garden Suite
| Size | 450 sq ft | 644 sq ft |
|---|---|---|
| Taxes & Fees | $230 | $350 |
| Rent Income | $1700 | $2300 |
| Investment | $235,000 | $285,000 |
| NOI | $1470 | $1950 |
| NOI with Financing | + $425 | + $682 |
| Cap Rate | 7.5 | 8.1 |
Condo Unit
| Size | 450 sq ft | 644 sq ft |
|---|---|---|
| Taxes & Fees | $540 | $715 |
| Rent Income | $2050 | $2530 |
| Investment | $620,500 | $733,000 |
| NOI | $1510 | $1815 |
| NOI with Financing | – $1250 | – $1455 |
| Cap Rate | 2.9 | 3.1 |
