Innisfree

Renovations

Innisfree plans to renovate the rental property. Since 50 - 60 percent of the short-term rental profits are realized during the snow season, any construction can be completed during the off-season with minimal impact on profits.

In addition to basic improvements to the existing structure, Innisfree is applying for a building permit to complete an additional dwelling unit (ADU) and a second floor addition that would dramatically increase the square footage of the rental house and even allow for two separate rental units on the same property, increasing rental revenue by more than 100%. The renovations will be completed in stages, with the first stage to be completed before listing.

Stage 1:

- Obtaining permits for ADU and

short-term rental

- Updating electrical system

- Running in-floor heating throughout living area

- Refinishing wood floors

- Adding insulation

- Sauna installation

Estimated total cost: $15,000 - $25,000

Stage 2:

- Replacing the septic tank with a larger-capacity tank to accommodate additional units

- Installing bathroom and kitchen in the ADU

- Finishing walls floors, and ceiling in ADU

- Relocating and upgrading electrical meter

- Additional furnishing as needed

Estimated total cost: $40,000

The third stage will consist of adding a second floor addition to the house, further increasing revenue potential. This stage will have to be seasonally timed to avoid losses in rental income and may be partially funded by additional share offers if working capital is not sufficient to fully fund the construction.