Where to park 200k; Residential or Apartment shares?

Caleb West

Multi Family Commercial|Collaborative Office|
REIN Member
Feb 7, 2017
117
54
28
#1
Buying and Legally Suiting a home usually requires about $200k , at least is does here in Alberta.
You want to be getting $1000 for the basement and and $1500 per month for the main floor plus utilities to get anywhere close to cash flow.

On average it works out to $225k/door to purchase a suited home , maybe a little more when it’s all said and done.

It’s complicated , it’s takes time , it’s very risky when compared to commercial real estate, highly competitive (i mean look at haw many members Keyspire has that are doing this in just 4 years of existence) and I don’t think it’s worth it long term. For a few years sure , but for 10 plus even 6..is it the best option you have with the same $200k?

Purchase costs , closing costs, carrying costs , renovation costs.

It takes from 4-6 months to get done and tenanted and for the rest of your life your subject to government rule changes , bank changes.

Short term maybe or long term, there better , safer more boring options.

You’ll get a return if things go right but the economy of scale is just not not on your side with two units.

200k in an apartment as a shareholder or a limited partner…

200k in the apartment field will get you between 20-35% ownership in in a 12-40 unit apartment.

An apartment is less than 140k a door , close to 100k per door in some scenarios with certain asset classes.

It isn’t subject to your income , it isn’t subject qualifying rule changes or high government control and regulation. You don’t even need to have job to get in on an investment like this

Maybe I’m wrong but I don’t think residential is a great long term play, if you’re thinking the same then we should talk. IMG_3511.jpg IMG_0473.jpg


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