- Joined
- Apr 21, 2008
- Messages
- 158
Hi All,
I am looking at a deal on a Triplex. Owner occupied on main floor is willing to stay with far below market rents so we will be purchasing conditional on her vacating. She will stay at 650/mth and market rent for a 2 bedroom in this area is around 800/mth.
Problem is two other units are being rented by an elderly couple. They live on the top floor and their son lives on the second floor. Both units are about $100 below market rents. Should I buy or should I run?
If I buy, what options do I have? Can I purchase conditional on renegotiating rents (tenants are good and couple have lived their for 9 years)? Note we are talking about Ontario. Should I purchase based on vacant occupancy?
Purchase does cashflow about 100/mth if I buy with existing tenants and rates and only source new tenants to replace the owner occupied. However if I can get the other two units to be paying market rents than I am looking at a positive cashflow of about 300/mth. I must say I am also concerned that these tenants will never leave and I will be left with an impossible place to sell with rents that will remain far below market rents.
Has anyone had experience with this before? All your comments are much appreciated!
Regards...Randy Dalton
I am looking at a deal on a Triplex. Owner occupied on main floor is willing to stay with far below market rents so we will be purchasing conditional on her vacating. She will stay at 650/mth and market rent for a 2 bedroom in this area is around 800/mth.
Problem is two other units are being rented by an elderly couple. They live on the top floor and their son lives on the second floor. Both units are about $100 below market rents. Should I buy or should I run?
If I buy, what options do I have? Can I purchase conditional on renegotiating rents (tenants are good and couple have lived their for 9 years)? Note we are talking about Ontario. Should I purchase based on vacant occupancy?
Purchase does cashflow about 100/mth if I buy with existing tenants and rates and only source new tenants to replace the owner occupied. However if I can get the other two units to be paying market rents than I am looking at a positive cashflow of about 300/mth. I must say I am also concerned that these tenants will never leave and I will be left with an impossible place to sell with rents that will remain far below market rents.
Has anyone had experience with this before? All your comments are much appreciated!
Regards...Randy Dalton