6Plex in Thunder Bay Ont???

J

JROC

0
Registered
#1
May 27, 2008
59
12
8
South Surrey
#1
Hi,

I have an opportunity to invest in a 6plex in Thunder Bay Ont. The numbers look decent but not too sure about the area.
Has anyone on this forum invested in Thunder Bay? Not too sure about the economic fundamentals of investing in real estate. Especially REINs Real Estate Success Formula.
Love to hear some comments.

Take care,
 
Thomas Beyer

Thomas Beyer

0
REIN Member
#2
Aug 30, 2007
13,881
2,113
113
Alberta and BC - The Top 2 Places on the Planet to
#2
A tough tough market. What is positive about Thunder Bay's future ? It is in the middle of nowhere and bitterly cold and humid in the winter.

It is cheap for a reason and highly fluctuating. Sudbury is far better or GTA or KWC or Hamilton, of course.

What is the asking price ? What rent and vacancy and R&M assumptions are used to make it a worthwhile deal in your opinion ?
 
Last edited:
SVS

SVS

Realtor/Investor K-W-C and surrounding area
REIN Member
#4
Jul 28, 2013
211
26
28
31
Kitchener
kwcinvestor.com
#4
Thunder bay would be tough, the tenants up there need good screening and there's barely any work, run the risk of tenants with government income in a fridgid harsh environment. You would have a difficult time with eviction. If you can attract the university kids you might find opportunity.

If you just want cheap try Welland or chatham, duplexes there go for in and around 100-150 and cash flow. Atleast you won't freeze if you visit.
 
C

Carleton

0
REIN Member
#6
Sep 21, 2007
5
0
3
69
Kelowna, B.C.
#6
JROC said:
Hi,

I have an opportunity to invest in a 6plex in Thunder Bay Ont. The numbers look decent but not too sure about the area.
Has anyone on this forum invested in Thunder Bay? Not too sure about the economic fundamentals of investing in real estate. Especially REINs Real Estate Success Formula.
Love to hear some comments.

Take care,
Click to expand...
 
R

RE123RE

Inspired Forum Member
Registered
#7
Jan 22, 2016
194
16
18
44
#7
JROC said:
Appreciate the advice thank you.
Click to expand...
Hi,
If you appreciate the advice, which also means you will probably not proceed with the deal, do you mind answering the members questions please - what is the asking price and total monthly rent?
Thanks
 
J

JROC

0
Registered
#8
May 27, 2008
59
12
8
South Surrey
#8
This was a possible JV deal brought on by a friend. I passed on it.
Ask price $259,000
Projected rents $5479 minus expenses (i never did dig deeper). Property also needed a lot of work. Wasn't a big fan of the area but wanted to see if anyone on this forum has invested in Thunder Bay.
 
Last edited:
R

RE123RE

Inspired Forum Member
Registered
#12
Jan 22, 2016
194
16
18
44
#12
Rickson9 said:
Is reading or arithmetic harder?
Click to expand...
Is this proper English/logical grammer ? or is it just me:)
Re-read incl. do some math and I hope the question will be more clear to you.
ps. not sure why it confuses you that where asking price is 4 times the annual rent, CAP is higher than when it is 5 times the rent (all else being equal). and then if it's because the north is crap, wouldn't a more educated answer elaborate?
Hint: comparing high CAP ON to US is very different than AVG ON to US.
 
stephenjones

stephenjones

0
Registered
#16
Mar 11, 2014
16
3
3
49
Durham Region, Ontario
#16
Some say the economic impact of mining chromite around the Ring of Fire will be similar to that of the AB Oil sands. T Bay is the closest international airport. At this point purely speculative but it has potential for a great future...way in the future.
 
You must log in or register to reply here.