Secondary Suites & Home Additions in The Preserve, Oakville

Adding a basement apartment or expanding your home is one of the most common questions homeowners in North Oakville ask. In The Preserve, where homes are newer, lots are compact and many properties sit in POTL or rear-lane communities, the answer depends on more than provincial headlines. The rules that apply to you come from several layers: the Province of Ontario, the Town of Oakville, the Ontario Building Code (OBC), and in some cases your condominium corporation or builder agreements.

This guide explains how secondary suites (also called additional residential units, or ARUs) and home additions work in Oakville, and how those rules apply to The Preserve, which sits north of Dundas Street West in the L6H and L6M postal code areas and was built under the North Oakville planning framework. It covers zoning, permits, building code, parking, costs, financing, landlord and tax basics, and what buyers should check before purchasing. Rules, fees and by-laws change, so use this as a planning guide and confirm current details with the Town of Oakville before you spend money.

Quick answer: A legal secondary suite in The Preserve generally needs a zoning review under North Oakville Zoning By-law 2009-189, a building permit, OBC compliance, an Electrical Safety Authority (ESA) inspection and workable off-street parking. A basement suite in a detached home is the most realistic option. Townhomes, rear-lane homes and POTL homes face many more limits.

What Is a Secondary Suite in Oakville?

A secondary suite is a self-contained home inside or beside your main home, with its own kitchen, bathroom and sleeping area. Many people still call it a basement apartment, in-law suite or accessory apartment. Understanding the correct terms matters because the Town, the Province and real estate listings do not always use the same language.

How Ontario and Oakville Define It

Ontario uses the term Additional Residential Unit (ARU). An ARU is a subordinate, self-contained dwelling unit located within a primary dwelling or in an accessory building on the same lot. Oakville's own documents use terms such as secondary suite, accessory apartment and second unit, so it is worth checking the exact definition on oakville.ca before you apply. In practical terms, converting a basement into a rental unit is treated as a change of use, which is why both zoning approval and a building permit are required.

Types of Suites and What Is Realistic in The Preserve

Not every suite type suits every lot. In The Preserve, lot sizes, setbacks and parking arrangements decide what is practical far more than what is allowed on paper.

How Many Units Are Allowed on One Lot?

Under Ontario's Planning Act changes (Bill 23, 2022), municipalities must generally allow up to three residential units on an urban residential lot as-of-right, meaning without a rezoning. Some Ontario municipalities have chosen to permit four units through their own local programs, but the provincial rule remains three, so confirm what Oakville currently permits on your lot. Oakville's local approach, which should be verified, allows either two attached units (for example the main home plus a basement suite) or one attached plus one detached unit, but not two detached suites.

For Preserve homeowners, this provincial headline does not automatically translate into a buildable suite. Detached and semi-detached homes are usually the best candidates. Freehold townhomes, rear-lane homes and POTL homes are more restricted by shared walls, shared services, parking and condominium rules, which are covered in later sections.

Legal vs. Unpermitted Suites

A legal suite is one that has been approved for zoning, built under a building permit, inspected to OBC standards, cleared by the ESA for electrical work, and registered with the Town where required. An unpermitted suite is one that was built or rented without those approvals. The difference matters for safety, insurance, financing and resale, and we explain the practical risks later in this guide.

Why Suites and Additions Are Popular in The Preserve

Homes in The Preserve represent a significant investment, so many owners look for ways to offset carrying costs. A legal suite can work as a mortgage helper, and it also supports multigenerational living, allowing parents or adult children to live independently under the same roof. Others want additional work-from-home space. On the rental side, North Oakville's access to Highway 407, Dundas Street, nearby healthcare employment and Uptown Core shopping creates steady demand from commuters and professionals.

Zoning Rules in The Preserve

Zoning is where most suite and addition plans succeed or fail. A project can meet the Building Code and still be refused because it breaches a zoning requirement.

Which Zoning By-law Applies?

The Preserve is governed by the North Oakville Zoning By-law 2009-189, which applies to lands north of Dundas Street. The Town's other main by-law, Zoning By-law 2014-014, applies south of Dundas Street. This distinction is one of the most common sources of confusion online: many articles written for Oakville in general quote rules from the south Oakville by-law, which may not match your lot. You may also see a recent south Oakville by-law, By-law 2026-088, mentioned online. According to the Town's public notice, it amends Zoning By-law 2014-014, so it applies to south Oakville lands only and has no impact on The Preserve, which remains under By-law 2009-189. Always confirm the by-law and zone that apply to your exact address.

Which Preserve Home Types Can Have a Suite?

Home type has a major influence on feasibility. The table below summarizes the general picture, but each lot still needs to be checked individually.

Lot Coverage, Height, Setbacks and Unit Size

Several measurements usually decide whether a project complies. Research for this guide cites a unit-size limit of roughly 30 percent of the dwelling's floor area under section 4.29 of By-law 2009-189, and indicates that basement area may be counted in that calculation. Lot coverage limits are often cited in the range of about 42 to 50 percent depending on the zone. Setbacks in North Oakville can be tight, particularly side yards, and there may be restrictions on new exterior entrances placed in narrow side yards. These figures should be treated as indicative and verified against the current by-law text for your specific zone.

When You Need a Minor Variance

If your project breaches any zoning requirement, even slightly, you generally need a minor variance from the Town's Committee of Adjustment. A foundation sitting 1.19 metres from a property line where 1.2 metres is required, for example, would typically need relief. A variance involves an application fee (cited at about $4,303 in current Town fee information, to be verified), a public notice period and a hearing, so it can add weeks or months to your schedule. If your project also changes grading or the exterior footprint, such as adding a walk-up stairwell, a separate grading or site alteration review (cited at roughly $2,200) may apply as well, so check the Town's current fee schedule. In a community where lots are compact and homes are built close to zoning limits, variances are more common than many owners expect.

How to Check Your Address's Zoning

Start with the Town of Oakville interactive zoning map on oakville.ca, which shows the zone for your property. If anything is unclear, contact Town Planning Services before hiring a designer. A short conversation with planning staff can prevent costly redesigns.

Permits and Approvals for a Basement Suite

Many homeowners underestimate how many approvals are involved. A legal suite typically requires three separate tracks: planning (zoning), building (OBC) and electrical (ESA).

Permits You May Need

You will generally need a zoning review or certificate confirming that the unit complies with By-law 2009-189, a building permit from Town of Oakville Building Services under the Building Code Act, and a separate ESA electrical permit and inspection. If the project involves exterior excavation, changes to grading or a new walk-up entrance, you may also need a grading or site alteration permit.

The Building Permit Process Step by Step

1. Prepare drawings. A BCIN-qualified designer or architect prepares plans that meet the OBC and zoning requirements.

2. Submit a complete application. Applications are submitted online with plans, structural and mechanical information, and required declarations.

3. Town review. Staff review the plans against the OBC. A 10-day review target applies to complete residential applications, but incomplete files can pause that clock.

4. Permit issued. Once fees are paid and plans approved, the permit is issued and should be posted at the site.

5. Staged inspections. Inspectors visit at key stages such as framing, plumbing, insulation and final completion.

6. Permit closed. After the final inspection, the permit file is closed.

Does Oakville Require Registration of a Secondary Suite?

The research for this guide indicates that Oakville maintains registration of two-unit dwellings, which helps confirm that a suite has been properly approved and updates emergency service records. Because registration processes can change, confirm the current procedure and requirements with the Town.

Where to Check Current Fees and Timelines

The Town publishes its Building Services Rates and Fees schedule on oakville.ca, and the current schedule is the best place to confirm permit fees. For review times, contact Building Services directly, since volumes vary through the year.

Risks of an Unpermitted Suite

Operating an unpermitted suite can lead to an order to comply, which may require the unit to be decommissioned, as well as fines under municipal by-laws and the Building Code Act. It can also affect insurance, because an insurer may deny a claim if a fire or flood starts in an undisclosed unit. At resale, buyers' lawyers, inspectors and lenders may uncover the issue, which can lead to price reductions, delays or a failed deal.

Ontario Building Code Requirements for Basement Suites

The Ontario Building Code sets the minimum safety and livability standards for a suite. Newer Preserve basements often start from a better position than older homes, but they still need to be measured and checked.

Ceiling Height, Windows and Light

A finished suite generally needs a ceiling height of about 1.95 metres (roughly 6 feet 5 inches) over most of the living area, with about 1.85 metres allowed beneath ducts and beams. Requirements can differ depending on whether a home is treated as existing or new construction, so confirm with a BCIN designer. Living and dining rooms need adequate natural light through windows, and bedrooms need an egress window with an unobstructed opening of at least 0.35 square metres, with no dimension under 380 mm, unless the room has a direct exit.

Fire Separation and Soundproofing

The ceiling and walls between the two units must form a continuous fire separation, typically rated between 30 and 45 minutes depending on the construction and alarm arrangement. Builders often use Type X drywall and resilient channels to achieve both fire and sound performance. For new construction under Part 9 of the OBC, the sound transmission requirement between dwelling units is generally STC 50, and the Code also allows an ASTC-based route. Where a house has existed for five years or more, Part 11 may allow alternative compliance, which is where a lower figure such as STC 43 has been cited in the past. Because many Preserve homes are fairly new, your designer should confirm which route applies to your home.

Egress, Exits and Newer Preserve Basements

Every suite needs a safe, continuous path to the outside. Many newer Preserve basements have good depth and modern foundations, but builder-standard windows often do not meet egress size automatically. Enlarging a window opening and installing a compliant window well is common, and it needs engineering review and a permit.

Smoke and Carbon Monoxide Alarms

Interconnected smoke alarms must be installed so that an alarm in one unit sounds in the other. Carbon monoxide alarms are required near sleeping areas where fuel-burning appliances or an attached garage are present, which describes most newer homes.

Plumbing, Heating and Electrical

The suite must have heating that its occupant can control. The OBC also restricts recirculating return air from one dwelling unit into another, and ductwork passing through the fire separation needs additional protection, so a separate system such as a ductless mini-split heat pump is a common solution. Your BCIN designer can confirm which approach suits your home. Plumbing needs adequate water service and drainage, and the electrical system needs a load calculation and ESA inspection. A sub-panel is advisable. A separate utility meter is not a legal requirement; it is simply a billing convenience.

Parking Rules for Secondary Suites in The Preserve

Parking is often the practical limit on suites in North Oakville, even where zoning otherwise allows them.

What Is Required, and What Did the Province Change?

Municipal zoning has traditionally required parking for additional units. Provincial changes through Bill 23 (2022) limit municipalities to requiring no more than one parking space per additional residential unit. Some local sources describe a total of three spaces across a lot, so confirm how the Town currently applies the rule to your property.

Do Tandem or Driveway Spaces Count?

Research cites section 5.4.1.5 of By-law 2009-189 as allowing tandem parking (one vehicle behind another) to count in buildings with no more than two dwelling units. However, spaces must fit entirely within your lot, and many Preserve driveways are short. A tenant's vehicle overhanging the sidewalk can lead to parking tickets and neighbour complaints. Measure your driveway carefully before relying on it.

Street Parking North of Dundas

On-street parking cannot be a reliable plan for tenants. The Town generally applies a three-hour limit on municipal streets unless signed otherwise, and winter overnight parking restrictions apply during the cold season. Check the current dates and rules on oakville.ca before advertising a suite.

Rear-Lane Homes and Townhomes With Garages Off the Lane

Rear-lane homes often have no front driveway, and parking in the lane itself is generally not permitted because it blocks access for emergency and service vehicles. As a result, parking for a suite usually has to be inside the garage. If the garage is already needed for the owner's vehicles, a suite may not be practical.

Shared Driveways and Visitor Parking in POTL Communities

POTL communities typically have shared driveways, private lanes and visitor parking managed by a condominium corporation. These spaces are usually not available for tenants, and the declaration may limit tenant vehicles or require registration. Review the rules before you plan a rental.

Home Additions in The Preserve

Additions raise different questions than suites. Instead of changing how existing space is used, you are adding to the building, which brings in zoning envelopes, grading, and sometimes environmental rules.

Which Additions Are Realistic?

Approvals Needed

Additions generally need a zoning compliance review, a building permit, and a minor variance if any limit is exceeded. Larger projects may also trigger a site alteration or grading approval, cited in research for projects over about 50 square metres, with a fee of roughly $2,200 that should be verified. Structural drawings are typically required, especially for second-storey additions where the existing foundation must be shown to support the new load.

Conservation Halton and the Natural Heritage System

Many North Oakville neighbourhoods border creeks, ponds, trails and natural areas. If your lot is near a regulated valley, wetland, shoreline or floodplain, you may need a separate Conservation Halton permit before construction. The North Oakville planning framework also includes a Natural Heritage System that can influence what is allowed near protected areas. Check Conservation Halton's regulated area mapping early.

Small Lots, Setbacks and Lot Coverage

Newer homes are often built close to the lot coverage limit, with modest backyards and narrow side yards. That leaves little room to extend outward. Even a small rear addition can exceed coverage or setback limits and trigger a variance.

Grading, Drainage and Easements

North Oakville communities were built with engineered master grading plans, including swales and catch basins that move stormwater away from homes. Any addition or exterior change that blocks or alters those drainage paths can create flooding risks and compliance problems. Registered easements for utilities or drainage generally cannot be built over. Your survey and title will show them, so review these documents before drawing plans.

Newer Homes, POTL, Condo and Builder Restrictions

Buying a newer home brings protections, but also additional layers of rules that older homes may not have.

Builder Agreements and Registered Restrictions

Newer subdivisions may be subject to subdivision agreements and registered covenants that restrict exterior changes. These can affect things like side entrances, visible additions or changes to grading. Your real estate lawyer should review these documents.

POTL and Common Element Condominiums

In a POTL community, you typically own your home and lot but share common elements such as private roads, visitor parking and sidewalks through a condominium corporation. The declaration, rules and board approval process can restrict exterior alterations, drainage changes, leasing and tenant conduct. Even if zoning allows a suite, the condominium documents may effectively prevent it.

Condo Townhomes and Low-Rise Condos

For stacked townhomes and condominium-governed low-rise units, a secondary suite is generally not feasible. Shared floors, ceilings, utilities and ventilation, combined with the corporation's rules, make code-compliant separation impractical.

What Buyers Should Check

Before purchasing, a buyer should have their lawyer review the Agreement of Purchase and Sale and its schedules, complete a title search for easements and covenants, review a current survey for property lines and setbacks, and, for condominium properties, review the status certificate.

Does Altering a New Home Affect the Tarion Warranty?

It can. Changes to foundations, structural elements or builder-installed grading may exclude warranty coverage for the affected components or for resulting damage. Review Tarion's guidance and speak with your builder or lawyer before cutting into a foundation or changing grading on a newly built home.

Costs, Fees, Financing and Incentives

Before committing to a suite or addition, most homeowners want to know what the project will really cost and how to pay for it. This section covers typical construction ranges in the Oakville and Halton area, the fees and development charge rules that may apply, financing options, available incentives and how lenders treat a legal suite. All figures are indicative and should be confirmed with the Town, your lender and your contractors.

Typical Costs in Oakville and Halton

Costs vary significantly depending on the home, the finishes and the scope of work. The table below summarizes indicative ranges from the research for this guide.

These are planning figures, not quotes. Get several written quotes from licensed contractors.

Fees and Development Charges

Typical costs beyond construction include building permit fees (see the Town's current Building Services Rates and Fees), a possible site alteration permit, minor variance fees if needed, and designer and engineering fees. Under Bill 23, additional residential units are generally exempt from development charges, which can save thousands of dollars, but you should confirm eligibility with the Town for your project. Also budget for utility upgrades and connections.

Financing Options

Homeowners commonly finance suites with a home equity line of credit (HELOC) or a mortgage refinance. The federal government announced in December 2024 that insured mortgage refinancing could allow borrowing of up to 90 percent of the as-improved value of a home with a secondary suite, with longer amortizations. Confirm current terms with your lender. An earlier-announced Canada Secondary Suite Loan Program has unclear status, so do not rely on it without checking.

Government Incentives

The federal Multigenerational Home Renovation Tax Credit provides a 15 percent credit on eligible costs up to $50,000, for a maximum of $7,500, when a suite is built for an eligible senior or adult with a disability. Eligibility rules apply. Municipal and regional programs vary, so check with the Town and Halton Region for current offerings.

How Lenders View a Legal Suite

Many lenders will consider a portion of rental income from a legal suite when qualifying a borrower, and a legal suite may be viewed more favourably at appraisal. Unpermitted suites are generally not counted, and they can create problems at renewal or resale.

Landlord, Tenant and Tax Basics

Once a legal suite is ready, you become a landlord, and that comes with legal, tax and insurance responsibilities. Ontario's tenancy law, CRA reporting rules, MPAC assessments and your insurance policy all need attention before the first tenant moves in. The points below give a general overview, but it is wise to speak with a lawyer, accountant and insurance broker for advice on your own situation.

Residential Tenancies Act Basics

When you rent a self-contained basement suite, the Residential Tenancies Act (RTA) generally applies. Lease terms that conflict with the RTA are void, and landlords are expected to use Ontario's Standard Form of Lease. Units first occupied for residential purposes after November 15, 2018 are generally exempt from the annual rent increase guideline, but rent can still only be increased once every 12 months with proper written notice. Security deposits are limited: landlords may collect a last month's rent deposit and a refundable key deposit not exceeding replacement cost, but not damage or pet deposits.

What the Lease Should Cover

Because many homes do not have separate utility meters, the lease should clearly explain how hydro, gas and water costs are shared, whether as a percentage or a flat fee. It should also address internet access, snow removal and lawn care, garbage, recycling and organics under Halton Region's collection rules, and parking and shared areas. Clear written terms prevent most landlord and tenant disputes.

Rental Income and CRA

Rental income is reported to the CRA on Form T776 (Statement of Real Estate Rentals). Construction costs for the suite are generally capital expenses, which are treated differently from operating expenses such as insurance, property tax, utilities and mortgage interest, which can be partly deducted based on the rented portion of the home. Claiming capital cost allowance may also affect your principal residence exemption on sale. Speak with an accountant before making tax decisions.

Property Tax and MPAC

Building permits can prompt a review by the Municipal Property Assessment Corporation (MPAC), and changes in assessed value can affect property taxes. In some cases, supplementary or omitted assessments can be billed for the current year and up to two prior years, so budget for the possibility.

Insurance Changes

Tell your home insurer before a tenant moves in. Failing to disclose a rental unit can lead to a denied claim. Many owners switch to or add landlord insurance, which can include rental income protection, and ask tenants to carry their own tenant insurance.

Home Value and Rental Demand in The Preserve

Many owners ask whether a suite or addition is a good investment, both as a rental and at resale. The answer depends on legality, quality, location and market conditions. This section looks at how a legal suite can influence buyer interest, what drives rental demand in North Oakville, how additions compare, and what can go wrong when work is unpermitted.

How a Legal Suite Affects Value and Buyer Demand

A legal suite can widen the pool of interested buyers, including families seeking multigenerational living and buyers who want rental income to help qualify for a purchase. The effect on value depends on market conditions, the quality of the work and the suite's legal status, and it should be discussed with a local realtor and appraiser rather than assumed.

Rental Demand

The Preserve's location near Highway 407, Dundas Street and GO connections appeals to commuters, while nearby healthcare employment, schools, trails and Uptown Core shopping support steady demand for rental housing. Rents vary, so review current listings before projecting income.

Do Additions Pay Back at Resale?

Basement suites are often cited as one of the stronger-returning renovation projects, while large additions often recover a smaller share of their cost. Returns vary widely, and on small Preserve lots, an addition that reduces backyard space may not appeal to every buyer. Treat any percentage you see online as a rough guide.

Unpermitted Work During a Sale

Unpermitted work can be discovered through a home inspection, a lawyer's permit and title searches, or a lender's appraisal. The result may be a price reduction, a delayed closing, or a collapsed sale.

What Sellers Should Have Ready

If you are selling a home with a suite, prepare the zoning approval or certificate, closed building permit and inspection records, the ESA certificate of acceptance, registration confirmation if applicable, an up-to-date survey, and lease and rent records if the unit is tenanted.

Buyer and Homeowner Checklist

A little preparation can save thousands of dollars and months of delays. Whether you are buying a Preserve home that already has a suite or planning to build one yourself, the checks below help you confirm what is legal, what is possible and who you need on your team. A short action checklist at the end of this section pulls the key steps together.

Before Buying a Home With an Existing Suite

Verify the suite's legal status with the Town instead of relying on listing wording such as "in-law suite." Check for open permits or compliance issues, and ask for the ESA certificate and building permit records.

Before Buying a Home to Add a Suite or Addition

Confirm the zoning under By-law 2009-189, review POTL or condominium documents and covenants, measure basement ceiling height and window wells, and confirm that parking works on the lot or in the garage.

Professionals You May Need

• Real estate lawyer: reviews title, covenants, easements and the status certificate.

• Home inspector: assesses condition and visible code issues.

• BCIN designer or architect: prepares drawings and permit submissions.

• Licensed contractor and electrician: completes the work and files ESA permits.

Common Mistakes Homeowners Make

• Starting construction before the permit is issued.

• Assuming "as-of-right" means there are no rules.

• Ignoring drainage swales and easements.

• Overlooking parking, condo rules or insurance.

Action Checklist

1. Request proof of legal status for any existing suite.

2. Review the survey and title for easements and covenants.

3. Audit POTL or condo rules on leasing and exterior changes.

4. Measure ceiling and window clearances.

5. Confirm off-street parking without sidewalk overhang.

6. Hire a BCIN-qualified designer.

7. Secure the ESA permit and final inspection.

8. Update insurance before tenants move in.

Final Thoughts

For most homeowners in The Preserve, a basement suite in a detached or semi-detached home is the most realistic and cost-effective way to add space or rental income. Larger additions, garden suites and townhome or POTL suites are possible only in limited cases, and they usually involve parking constraints, shared-structure issues, setbacks and condominium rules that need careful review. The key is to confirm the by-law that applies to your lot, understand your parking situation, and plan for permits, inspections and insurance from the start.

Because Ontario's rules, Town fees and by-laws change often, verify current requirements with the Town of Oakville, Halton Region, Conservation Halton, the Ontario Building Code and the Electrical Safety Authority before starting. If you are buying or selling in The Preserve and want local guidance on suites, additions and resale value, contact [Your Name / Brokerage].

FAQs

What is the minimum ceiling height for a legal basement apartment in Ontario?

Generally about 1.95 metres over most of the living area, with around 1.85 metres under beams and ductwork. Requirements can vary depending on the building, so confirm with a BCIN designer before finalizing plans.

Which zoning by-law applies to The Preserve?

North Oakville Zoning By-law 2009-189 applies to The Preserve, since it lies north of Dundas Street. Zoning By-law 2014-014 applies south of Dundas Street, so rules quoted from that by-law may not match your property.

Can I build an additional residential unit (ARU) inside a North Oakville townhouse?

It may be technically possible in some freehold townhomes, but shared walls, parking and servicing make it difficult. POTL and condominium townhomes may be restricted by their declarations, so review those documents first.

Does my secondary suite in Oakville require separate gas and hydro meters?

No. A separate meter is a billing convenience, not a legal requirement for a compliant suite. Your lease should clearly explain how utility costs are shared.

How many residential units can I have on one lot in Oakville?

Provincial rules generally allow up to three units on an urban residential lot as-of-right, but Oakville's local rules limit the combination of attached and detached units. Confirm the current rules for your specific lot with the Town.

Do I need a building permit to finish my basement in Oakville?

Generally yes. A personal-use basement renovation typically needs a building permit, and creating a separate unit involves additional zoning and registration steps.

How much does it cost to make a basement legal in Oakville?

One recent source cites roughly $45,000 to $95,000 to legalize an existing finished basement and $60,000 to $130,000 or more for a full conversion. Actual costs depend on your home and finishes, so get several quotes.

Does Oakville require parking for a secondary suite?

Provincial rules limit municipalities to requiring no more than one parking space per additional unit. Check how the Town applies this to your lot, and confirm whether tandem or driveway spaces fit entirely on your property.

Will legalizing a secondary unit double my property taxes?

It is unlikely to double them, but MPAC may reassess the property, which can affect property taxes. In some cases, adjustments can be retroactive.

Is a garden suite realistic in The Preserve?

Rarely. Small lots, lot coverage limits and setbacks usually make detached suites difficult, and they often require a minor variance.

Can I convert my garage into living space?

This is usually problematic because it removes required off-street parking. Confirm with the Town before planning any garage conversion.

Does altering my new home affect the Tarion warranty?

It can. Alterations to structural elements or grading may exclude coverage for affected components or resulting damage. Check Tarion's guidance and consult your builder or lawyer first.

Can a landlord charge a tenant a share of utilities in Ontario?

Yes, if the arrangement is clearly set out in the lease or written agreement and consistent with the Residential Tenancies Act.

Is a legal suite worth it at resale?

Often it broadens buyer appeal and can support value, but results depend on market conditions, legal status and quality. Discuss expected returns with a local realtor and appraiser.