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High Rental Demand in The Toronto Beaches

AndreiAngelkovski

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Hello REIN Investors,



I wanted to share with you the "after video" of a duplex renovation in The Toronto Beaches...If you want to view the "before video" and post then click here: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-23686-Upper_Beach_Duplex_Renovation.html



Here is the "after post":



We are in the Upper Beaches in Toronto and this is a continuation from Episode #61 ` Upper Beach Duplex Renovation. The owner Nawar Naji has completed his $100,000 renovation in creating this high end executive style duplex. This episode will show the finished product and Episode #61 will show you the before picture. This renovation project is truly a `role model example` of what many of my investor clients aim to do.


The purchase Price of this house was $525,000. Nawar stayed on budget of $100,000 in his renovation. It took exactly 3 months to complete this renovation. Furthermore, Nawar was able to rent the upstairs apartment for $2545 / month plus utilities and $1225 / month plus utilities for the basement apartment. For a total gross income of $3770 / month. The rental demand was incredible! He was able to rent the upstairs within 2 days of advertising it and 10 days for the basement apartment to qualified young professionals. After all expenses, Nawar will be cash flowing close to $1000 / month! Many people wonder who in the world would pay this much for rent when they could simply buy a place? The rental market in the Toronto Beaches and its surrounding area is in very high demand and has been for quite some time. There are always people looking to rent quality suites`especially the young executive professionals who need a couple more years until they buy their own home, but need a place to rent in the mean time.


Well done Nawar! Thank you for sharing your renovation project details with our viewers`I know this will educate and inspire others to do similar things.



Here is the video: High Rental Demand in The Toronto Beaches
 

Rickson9

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[quote user=AndreiAngelkovski]I know this will educate and inspire others to do similar things.




This definitely inspires me to be a tenant. Good job to the tenant for landing such a sweet deal at the expense of the landlord.



The worst return on investment I've seen so far. Toronto is brutal.



There is no way an investor is cash flowing $1k a month on this. Income statement or it didn't happen.
 

reinvestors88

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[quote user=Rickson9]There is no way an investor is cash flowing $1k a month on this. Income statement or it didn't happen.


IMHO: With that rental income, positive cash flow is doubtful...maybe few bucks...
 

AndreiAngelkovski

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I guess everyone has their own way of analyzing properties and their own opinions on where they wish to invest. I am not here to argue that.



Here are the facts:



Rental Income: $3,770

Mortgage: $2,183 (amortized 30 years at 3.3%)

Taxes: $263

Insurance: $100

Repairs/Maintenance: $347



Cash Flow: $875



The landlord manages the property himself and the utillities are paid by the tenants. If you wish to add any other expenses to this equation that is your decision.



I hope this clarifies things.
 

reinvestors88

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IMHO: Good but not so great...low cash return is not my cup of tea...it is just me...others may be okey with it...so be it...Thanks for sharing.
 

Rickson9

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[quote user=AndreiAngelkovski]If you wish to add any other expenses to this equation that is your decision.





Now why would I want to do anything silly like that?



Thanks for sharing.
 

invst4profit

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For the sake of non REIN members out there, vacancies, utilities while vacant, evictions, legal, advertising, accounting, etc. are all missing from the expenses. It also seemes unrealistic that taxes in the Beaches is only $3156 per year. Something strange there.



Obviously with expenses at $710 (19%) that is unrealistically low but if it has only been rented for a few months the numbers may be exact but certainly not accurate over the long term. 30% expenses are more realistic on a recently renovated property.



Also necessary to point out the mortgage payment is only on $500,000, where is the owner calculating in his return on the other $125,000 investment. At 3.3% that should be another $350 per month deducted from the cash flow.
 

Rickson9

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I find it amusing when an individual tries to convince me that a gross of $3.7k a month can have sustainable operating profits of $3k a month. I guess they assume that everybody is a green noob. I can see it being insulting actually. Another reason I don't take investment advice from salespeople.
 

invst4profit

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I don't think the Beaches caters to your run of the mill income property investor. Probably more appealing to the young, over paid professional, deep pocket/cash to burn speculators.
 

AndreiAngelkovski

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[quote user=Rickson9]I find it amusing when an individual tries to convince me that a gross of $3.7k a month can have sustainable operating profits of $3k a month. I guess they assume that everybody is a green noob. I can see it being insulting actually. Another reason I don't take investment advice from salespeople.





Clearly this is getting personal. All I know is that my clients are very happy. Good luck with your investments.
 

invst4profit

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[quote user=housingrental]This is a harsh, but entertaining thread

Why the hate to Andrei's post?




This has nothing to do with Andrei. He is simply a real estate agent that has reported a clients investment property activities. Likely in an attempt to generate more business. Kudos to him for his success. We are discussing the details of this property and the general area known as the "Beaches", at least I am.

Andrei I believe specializes in that area of Toronto and probably does very well in doing so. He knows the financial reality of his specialty market and most likely targets appropriate customers.

As for being harsh obviously if someone is prepared to post numbers on a forum of this nature those numbers are fair game. This is after all a business/investment forum, not exactly a pajama party. Andrei knows this and is intelligent enough to know what he is marketing.

The numbers shown do not indicate a positive cash flowing property and that is what I have pointed out.



The Beaches, as far as being a good area for investment income properties, is over priced in relation to the market rents in regards to realising positive cash flow but likely above average for those speculators concentrating on appreciation. For those individuals the prestige of having a investment in the Beaches area of Toronto and being able to attract high quality trust worthy tenants that will not place demands on them as landlords is probably all they require till they cash out. They are a "special" type of investor not necessarily typical of most on this forum. For them having positive cash flow is probably a low priority. For me positive cash flow is required to put food on my table.
 

Rickson9

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[quote user=invst4profit]This has nothing to do with Andrei...We are discussing the details of this property and the general area known as the "Beaches"


This.



[quote user=invst4profit]This is after all a business/investment forum, not exactly a pajama party. Andrei knows this and is intelligent enough to know what he is marketing.The numbers shown do not indicate a positive cash flowing property and that is what I have pointed out.


And this.
 

liamryderd

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I am looking to buy a house either condo apt. or town home condo. Although i have gone through the basic difference between both, I would like to take the suggestions from all those who live / lived in those. And is corporate housing toronto costly.
 
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