Found cashflow in Kelowna

[CraigSmith]

I found a great cashflowing property in Kelowna since prices have come down so much lately. It has a great location to attract college tenants but there is a staggering amount of rentals on the market right now due to the state of the economy. Is this a good or a bad idea? If I am confident I can probably get renters, is cashflow cashflow even in a rough economic blip. It has 7 bedrooms and if rented by the room it has the potential to generate $1000 positive cashflow per month. If rented by the suite it could generate about $300 positive cashflow. At the moment I would be only renting out the 3 bed suite and living in the other suite for the next 8 - 10 months and then making it a full rental after that.

Any advice?

Craig

 

[invst4profit]

Do you have other rental properties. How confident are you on the cash flow. What are the real numbers on the property. Price, insurance, taxes, vacancy rate, market rents etc.
Having experience in the area can be a big deciding factor as many underestimate the real cash flow and are often overly optimistic on rental income possibilities. Due diligence is imperative. Others investing in the area may assist.

 

[GarthChapman]

Kelowna is a pretty tough market now. If you buy, then be sure you can handle high vacancies and low rents until the market improves, as it will.

 

[ChrisDavies]

I`m also hearing from friends in Kelowna (I live here too) that they`re having a tough time finding places to rent. There`s some definite market confusion going on.