What is BZRS?
We’ve all heard of ‘flipping’ a house: you purchase a home that needs some TLC, update the floor plan, upgrade some fixtures and then resell the home at a higher price point than when you purchased.
More recently, we’ve seen a surge in real estate investing we call B-Z-R-S: Buy, Zone, Rehab, Sell.
We take a disciplined approach when we look for the next project. We work in several markets we know well in Ontario and with wholesalers, realtors and our own marketing efforts.
One of the best ways to add equity to a project is to increase land use and dwellings. The most common example is to take a single-family bungalow and create a legal duplex.
We look to add even more equity to the project by thoughtfully renovating the property. Strategically spending on high ROI construction.
Our Real Estate team ensure the property is staged, listed and marketed to ensure the highest possible selling price.
As the price of single-family homes continues to rise at a faster rate than income levels, many potential homebuyers find the cost of living too high. As a result, the need for multi-family housing in Ontario is on the rise.
To address this housing crisis, The Tatum Group has adopted the BZRS model and worked to create housing opportunities that are inclusive to a range of income levels and families. This is not an effort directed at one particular neighbourhood or community but at any and all.
A great example of BZRS in action is seen in our 122 East 8th project. We purchased this single-family home and worked with by-law to have it rezoned as a legal duplex.
The home went from a 4 bedroom, 2 bathroom single-family home to a legal duplex. Unit A featured 4 bedrooms and 2 bathrooms and Unit B featured 3 bedrooms and 1 bathroom.
Homes in this Centremount neighbourhood in Hamilton average $1.45 million. We purchased East 8th Street for $530,000 in May 2020. With a combined rental income of approximately $4400/month, we are more than pleased with the results and continue to look for real estate opportunities that mirror this project.
Renovations to the home included those for safety and security as well as aesthetic:
- Ensuring all electrical and materials were to-code
- New windows and doors
- Replacing the roof
- Opening the floor plan to maximize natural light and improve the flow
- Adding modern, neutral finishes
We know that the Ontario Government wants to ensure a variety of housing options. We are following trends on affordable housing, rental needs and dwelling allowances. We encourage you to learn more:
Additionally, we welcome any questions and are always happy to discuss projects.