6Plex in Thunder Bay Ont???

[JROC]

Hi,

I have an opportunity to invest in a 6plex in Thunder Bay Ont. The numbers look decent but not too sure about the area.
Has anyone on this forum invested in Thunder Bay? Not too sure about the economic fundamentals of investing in real estate. Especially REINs Real Estate Success Formula.
Love to hear some comments.

Take care,

 

[Thomas Beyer]

A tough tough market. What is positive about Thunder Bay's future ? It is in the middle of nowhere and bitterly cold and humid in the winter.

It is cheap for a reason and highly fluctuating. Sudbury is far better or GTA or KWC or Hamilton, of course.

What is the asking price ? What rent and vacancy and R&M assumptions are used to make it a worthwhile deal in your opinion ?

 

[Rickson9]

What is the price and rents? Economics are irrelevant if those suck.

 

[SVS]

Thunder bay would be tough, the tenants up there need good screening and there's barely any work, run the risk of tenants with government income in a fridgid harsh environment. You would have a difficult time with eviction. If you can attract the university kids you might find opportunity.

If you just want cheap try Welland or chatham, duplexes there go for in and around 100-150 and cash flow. Atleast you won't freeze if you visit.

 

[JROC]

Appreciate the advice thank you.

 

[Carleton]

Hi,

I have an opportunity to invest in a 6plex in Thunder Bay Ont. The numbers look decent but not too sure about the area.
Has anyone on this forum invested in Thunder Bay? Not too sure about the economic fundamentals of investing in real estate. Especially REINs Real Estate Success Formula.
Love to hear some comments.

Take care,

 

[RE123RE]

Appreciate the advice thank you.

Hi,
If you appreciate the advice, which also means you will probably not proceed with the deal, do you mind answering the members questions please - what is the asking price and total monthly rent?
Thanks

 

[JROC]

This was a possible JV deal brought on by a friend. I passed on it.
Ask price $259,000
Projected rents $5479 minus expenses (i never did dig deeper). Property also needed a lot of work. Wasn't a big fan of the area but wanted to see if anyone on this forum has invested in Thunder Bay.

 

[Rickson9]

yeah I wouldn't have dug deeper either. crap numbers.

 

[RE123RE]

yeah I wouldn't have dug deeper either. crap numbers.

Hi,
I have seen your posts saying 5 x rent. this one is better than rent x 4.
Are we not contradicting ourselves here a little?
Thanks

 

[Rickson9]

Is reading or arithmetic harder? I find both equally difficult.

 

[RE123RE]

Is reading or arithmetic harder?

Is this proper English/logical grammer ? or is it just me
Re-read incl. do some math and I hope the question will be more clear to you.
ps. not sure why it confuses you that where asking price is 4 times the annual rent, CAP is higher than when it is 5 times the rent (all else being equal). and then if it's because the north is crap, wouldn't a more educated answer elaborate?
Hint: comparing high CAP ON to US is very different than AVG ON to US.

 

[Rickson9]

I'm not good at reading or arithmetic.

 

[RE123RE]

I'm not good at reading or arithmetic.

Hi,
Perhaps best if you do not invest too much outside of the bank then. RE is a numbers game my friend.
Thanks

 

[Rickson9]

I agree

 

[stephenjones]

Some say the economic impact of mining chromite around the Ring of Fire will be similar to that of the AB Oil sands. T Bay is the closest international airport. At this point purely speculative but it has potential for a great future...way in the future.