Why condos at all? I remain convinced that all condos, older walk ups and new builds are bad income generating properties. Many folks bought these 'cheap' converted condos in Edmonton in 2008 when the market cratered, and even today heavily regret it. My own PM in saskatoon is boasting at how 'cheap' condos are and is loading up on them.
My two cents, cheap = crap. A much better Calgary play would be to buy multiple SF units and sell them off to owners a few years from now.. Commercial assets are even better and a decent apartment block is still a much better investment than a substantially discounted condo.
To add to that, these cheap condo’s that are being talked about in Calgary (Edmonton same situation) aren’t even in B class buildings. More like bottom C buildings or below.
They are bad for several reasons, re sale in the future, and any appreciation will be minimal, and looking at monthly condo fees in those older buildings you would be anywhere from $300.00 to $550.00 per month.
Cashflow non-existing. You would also need extra cash to update the outdated units.
Now try to update your tenant profile in a tired looking building.
Frankly, to me you purchase real estate much alike a modular on a trailer park. You will attract similar type tenants as well. Money down the drain.
Bad idea if you ask me.