London Ontario
- Thread starter RELover
- Start date
All of my properties are in London, Ontario. I have student houses at Fanshawe College. In London the cash flow is better than those cities listed above. However, I would say all things considered Hamilton would probably be best out of those choices as far as appreciation is concerned. I am no expert though. I prefer cash flow, but my next move could be Hamilton, but I am also still looking for deals in London.
London is having great appreciation right now as well. So it is a tough choice.
London is having great appreciation right now as well. So it is a tough choice.
How is it dealing with students?
With students there would be a lot of turnover but better cash flow vs doing long-term rentals?
What is your experience?
Also, what kind of appreciation are we seeing in London currently? (Couldn't find online).
Have you seen much rent increase in the last few years in London?
With students there would be a lot of turnover but better cash flow vs doing long-term rentals?
What is your experience?
Also, what kind of appreciation are we seeing in London currently? (Couldn't find online).
Have you seen much rent increase in the last few years in London?
Students are great, but landlords get chewed up by students if you are not on top of your business or do not have the temperament.
I get the best students and I am very nice to them. I let the other guys deal with the bad ones. Yes, the cash flow is good, but again if you are not on top of your game you will get into trouble so for some people regular rentals are better. It's just a matter of figuring out if you can put in the extra effort. I'm not sure what the average is because I bought at a very low period in the last 4 years. Overt 4 years I am at 60% appreciation. That of course won't continue since it was a one time event. The rental increases are slow and steady. Rents per bedroom by the college are between 450 and 500 inclusive. By Western the rents are 600 inclusive, but the competition over there is intense. I hope that helps.
I get the best students and I am very nice to them. I let the other guys deal with the bad ones. Yes, the cash flow is good, but again if you are not on top of your game you will get into trouble so for some people regular rentals are better. It's just a matter of figuring out if you can put in the extra effort. I'm not sure what the average is because I bought at a very low period in the last 4 years. Overt 4 years I am at 60% appreciation. That of course won't continue since it was a one time event. The rental increases are slow and steady. Rents per bedroom by the college are between 450 and 500 inclusive. By Western the rents are 600 inclusive, but the competition over there is intense. I hope that helps.
Hi Dan,
Since you have a lot of experience in London. What are your thoughts on the following project from a cash flow perspective? It's 5 mins drive to the camps.
http://files.constantcontact.com/af94d356601/b605ee70-91e9-4753-9cc1-761a1a18fe64.pdf
I had hoped to get in on a Stoney Creek development ON the RIdge by rosehaven but the prices increased almost 30-50k already in the first couple days. That will be negative cashflow now as the towns (freehold) are not increased to 500+. My appointment for that is tomorrow.
Anyhow please let me know about the London development. Thank you!
I am not sure of the exact location of these, but I imagine they are in the Sarnia road area. Are they 5 minutes to campus or are they closer to hyde park road? The maximum rent you will get out of these is 2,100 a month to students inclusive. So once you pay a manager you will be negative cash flow. The price isn't bad, but I never assume appreciation. Especially when things are getting a little out of hand. I have never bought brand new so I am no expert. The area is better the further away you get from the school over there. That doesn't make it easy to rent to students though. Whitehills to the north west of wonderland and Sarnia is not the best. There is way more money to be had from a cash flow perspective by Fanshawe college, but people love to invest by the university so it is saturated. I prefer making over $1,000 cash flow a month off of a 250K property that will probably have less appreciation. I prefer value over the new homes, but people are buying the new homes like crazy. I never get in line for anything. I buy what others aren't interested in and make more cash flow. Plus you can still get great tenants by the college. Whatever works for you though. Everyone is different.
Thanks for your input.
That is true! It is getting out of hand. People are running to buy new homes EVERYWHERE.
We bought a new home just 6 months ago and we have already seen close to 40-50% appreciation on that development (but that's for a principal residence). So now while we don't want negative cashflow, we are working on a strategy of possibly acquiring new homes but that would bring positive cashflow even if it's just $100-$200/mth.
We are browsing and figuring out what would work best for us that would help meeting our goal of retiring in the next 10 years. I really do also feel that cashflow is the best. But even if for the next three years we can get in on new properties and build wealth through appreciation first and then when the market slows down we can focus on acquiring existing cash flow properties, might help us meet our goals. I'm going to ACRE so let's see what I learn there.
Any suggestions/input is welcome
