Before and After: a behind-the-scenes look at what it takes to buy, renovate and lease an income property
Home renovation TV shows have made “house flipping” shorthand for turning a hasty reno into an easy payout. The reality is a lot more complicated
The Story: Realtor Aleksandra Oleksak purchased her first home with a girlfriend at age 25. With help from her mom, a veteran realtor, the girls beat out nine other buyers to win the property, which they then renovated and sold. Oleksak was hooked. Soon after, she left her job in the fashion industry, got her real estate license and completed four more renovation projects. Last year, the 30-year-old decided to acquire an investment property. “I don’t believe in RRSPs,” she says, “I believe in real estate.” Oleksak wanted a house that would provide rental income until she was ready to retire, when she would renovate it once again and sell.
The Buy: Oleksak was searching in the west-end when a friend told her he was selling his three-bedroom townhouse in the Junction Triangle. After making sure the house was structurally in good shape, she bought it privately for $420,000. Oleksak put down a hefty down payment to ensure a positive cash flow after paying off monthly expenses.
The Renovation: With her ideal renters—a young, professional couple—in mind, Oleksak began what she hoped would be a month-long renovation. She set a conservative budget of $10,000, which was quickly adjusted to $15,000. One of the major decisions: how to unify the hodge-podge of parquet, tile, linoleum and original hardwood flooring. Laying all new floors seemed like a waste since she planned to renovate again as she neared retirement. When staining didn’t work, her realtor boyfriend suggested they try paint instead. Initially skeptical, Oleksak was pleased with the final results. She was less happy to find out that the upstairs bathroom had almost no water pressure. A plumber delivered the bad news: the waterline coming into the house had corroded, which added an unexpected $2,300 to the bottom line. In the end, the renovation cost $26,037.62 and took two months to complete.
The Sell: Oleksak staged the house and offered the option of renting unfurnished for $2,750 a month or furnished for $3,000. Though she received several applications right away, she decided to hold out for her ideal renters: an executive couple. Three and a half months later, the wait paid off. A husband and wife, both doctors from the U.S. expressed interest and, because they were exactly the renters Oleksak was looking for, she gave them a deal on the rent. They took the house unfurnished for $2,650 a month.
By the Numbers:
• Cost to buy: $420,000
• Months of construction: 2
• Cost of renovations: $26,037.62
• Reno cost overrun: $11,037.62
• Time to find tenants: 3.5 months
• Rented for: $2,650/month plus utilities
244665 Realtor Aleksandra Oleksak bought this townhouse near Dupont and Dundas West for $420,000 Before and After: 104 Edwin Avenue https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A001-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A001.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A001.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a001/ edwin-avenue-toronto-before-and-after-a001 0 0
244666 Oleksak completely revamped the main and second floors. She also cleaned up and painted the basement and added a new washer/dryer AFTER: front foyer https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A002-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A002.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A002.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a002/ edwin-avenue-toronto-before-and-after-a002 0 0
244667 BEFORE: living room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A003-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A003.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A003.jpg 667 1000 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a003/ edwin-avenue-toronto-before-and-after-a003 0 0
244668 Oleksak splurged on light fixtures, reasoning that she can keep them when she renovates the home again, closer to retirement AFTER: living room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A004-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A004.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A004.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a004/ edwin-avenue-toronto-before-and-after-a004 0 0
244669 BEFORE: living room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A005-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A005.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A005.jpg 667 1000 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a005/ edwin-avenue-toronto-before-and-after-a005 0 0
244670 AFTER: living room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A006-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A006.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A006.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a006/ edwin-avenue-toronto-before-and-after-a006 0 0
244671 BEFORE: dining room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A007-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A007.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A007.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a007/ edwin-avenue-toronto-before-and-after-a007 0 0
244672 In the dining room, Oleksak painted the walls and floor, and put in a new light fixture AFTER: dining room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A008-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A008.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-A008.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-a008/ edwin-avenue-toronto-before-and-after-a008 0 0
244673 However, she kept the arch separating the dining room from the living room AFTER: dining room https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B001-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B001.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B001.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b001/ edwin-avenue-toronto-before-and-after-b001 0 0
244674 BEFORE: kitchen https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B002-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B002.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B002.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b002/ edwin-avenue-toronto-before-and-after-b002 0 0
244675 The kitchen got new stainless steel appliances, a new sink, a new faucet and new laminate counter tops. Oleksak also put in a dishwasher, which the house didn't have before AFTER: kitchen https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B003-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B003.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B003.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b003/ edwin-avenue-toronto-before-and-after-b003 0 0
244676 She painted the existing cabinets and added modern handles AFTER: kitchen https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B004-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B004.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B004.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b004/ edwin-avenue-toronto-before-and-after-b004 0 0
244677 The carpet on the stairs was ripped out and the floor, painted AFTER: upstairs hallway https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B005-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B005.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B005.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b005/ edwin-avenue-toronto-before-and-after-b005 0 0
244678 BEFORE: master bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B006-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B006.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B006.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b006/ edwin-avenue-toronto-before-and-after-b006 0 0
244679 The master bedroom had nice, big windows, but the garish pink and orange frames were distracting AFTER: master bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B007-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B007.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B007.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b007/ edwin-avenue-toronto-before-and-after-b007 0 0
244680 Oleksak painted the walls and floors and added a new light fixture and window treatments AFTER: master bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B008-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B008.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-B008.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-b008/ edwin-avenue-toronto-before-and-after-b008 0 0
244681 BEFORE: second bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C001-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C001.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C001.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c001/ edwin-avenue-toronto-before-and-after-c001 0 0
244682 AFTER: second bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C002-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C002.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C002.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c002/ edwin-avenue-toronto-before-and-after-c002 0 0
244683 BEFORE: third bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C003-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C003.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C003.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c003/ edwin-avenue-toronto-before-and-after-c003 0 0
244684 AFTER: third bedroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C004-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C004.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C004.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c004/ edwin-avenue-toronto-before-and-after-c004 0 0
244685 BEFORE: bathroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C005-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C005.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C005.jpg 667 1000 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c005/ edwin-avenue-toronto-before-and-after-c005 0 0
244686 The bathroom got a new toilet, new tiles, a modern vanity and a re-glazed tub AFTER: bathroom https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C006-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C006.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C006.jpg 1000 667 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c006/ edwin-avenue-toronto-before-and-after-c006 0 0
244687 BEFORE: backyard https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C007-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C007.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C007.jpg 667 1000 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c007/ edwin-avenue-toronto-before-and-after-c007 0 0
244688 AFTER: backyard https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C008-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C008.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-C008.jpg 667 1000 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-c008/ edwin-avenue-toronto-before-and-after-c008 0 0
244689 <strong>AFTER:</strong> AFTER: backyard https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-D001-96x96.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-D001.jpg https://torontolife.com/wp-content/uploads/2013/11/edwin-avenue-toronto-before-and-after-D001.jpg 667 1000 [] https://torontolife.com/real-estate/before-and-after-104-edwin-avenue/slide/edwin-avenue-toronto-before-and-after-d001/ edwin-avenue-toronto-before-and-after-d001 0 0
This wasn’t really much of a renovation. They bought some new appliances, a counter top and a vanity for the washroom and everything else (including the floors) they painted over to flip/rent this as quickly as possible.
I don’t believe in RRSPs,” she says, “I believe in real estate.”
LOL… good luck with that
Like lipstick on a pig! I agree with Torontopoly—not very much was done with the space except some cosmetic changes. And those weren’t chosen very well (i.e. fiberboard vanity and shelving in the bathroom, painted tile backsplash in the kitchen, painted hardwood throughout). OUCH!
Starting with an unrealistic Budget in the first place.
I don’t agree with Torontopoly. I see it as a renovation. Renovation is the change you make from the previous one, that is, a process of improving a structure. Didn’t you see any improvement with the second one from the 1st one? Well.. I think it is much of a home renovation in Toronto . The total look has changed even with those small changes.
the house looks good, but i find it a little risky to have the whole house rented to just one family, when the couple decides to leave i dont think it will be very easy for them to find people willing to pay 2650/month plus utilities, i mean it took 3.5 months to find tenants, that is another few thousand dollars spent on interest, tax and utilities when not being rented.
i purchased a multifamily investment property very close to junction area, around dufferin/davenport, and i have 3 units rented separately, i bought for $450k with parking space, the property came with existing tenants and all appliances, its rented for 2750/month all inclusive and property came updated