Anyone own a 6plex in Alberta?

[Martin1968]

Learning, exercising, relationship building and losing weight are 4 of a few things that cannot be delegated ! What else ?

Let me think.......uhm........gaining weight????
Baking, sailing and knitting can all be delegated.

 

[Thomas Beyer]

Why would you want to build when you could purchase a multi family project at a fraction of the cost?

It is indeed worth asking if the rents are that much higher with newly built vs old and renovated. In many cases buying old, and fixing it up is the better business model, especially if one counts cash on cash ROI and ROI on time invested.

Of course in older buildings utilities especially hot water and heat are not sub-metered and that may make a substantial difference.

One also ought to understand what the refi value is when occupied.

 

[Cory Sperle]

Especially on a building so small, if you buy at 80/door and even if you go nuts and spend 20 a door, you should have a nicely renovated project in a mature area still well below build prices. Plus tenants will wear out the newness as well. I know they went loco in Saskatoon with many builds but at the time they were fetching sky high rents, more than older buildings were getting so it made sense for a short period of time. These buildings are now half empty and offering massive incentives to fill up. Vacancy is still high in Alberta with no sign of rents going up quickly so I would be looking at what I could buy and improve vs. build.

 

[Courtney Hammond]

The recent sold comps, and those listed are of buildings from the 70’s... and sold for about $100,000 less than we can build it for. There are a few reasons we are looking to build:

1) in house building- means that our cost to build as a great margin.

2) gives us the opportunity to keep and rent, or sell individual units at a price that is still selling- aka it is still affordable.

3) two of our money backers only are interested in building

There are other reasons but these are the more important ones. That being said- all of your comments are valid. At the moment we are still in the exploring the options and seeing if it works. We are a few weeks away before we will have all the numbers back and plans. I’ll be sure to come back for opinions on the real numbers if we move forward!

Thanks! I love hearing everyone’s thoughts!


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[David8043]

".common utilities? . . . I’m guessing the cost is significantly less if it was a common system."

Absolutely not less cost - much higher cost. When the utilities are common, windows will be open at -20 degrees and block heaters will be plugged in at -5. The tenant will insist that they cannot sleep without fresh air or that the car won't start unless it is plugged in. If they are paying the utilities themselves, magically they can sleep fine with the windows closed at -20, and the cars start fine at any temperature. (I have 14 doors in 4 buildings and every one has separate meters for everything. There is no aggravation about utilities for me, and no arguments about the split)