Edmonton - Would you invest here?

[Systems]

Hello REIN members,



After attending the ACRE weekend with Don i feel confident in my decision to invest in Real Estate, however I am already stuck on rung 2 of the Cash Flow Property Ladder` and i would really appreciate some feedback.



I have narrowed down my search to Skyrattler, however i cannot ignore the persistence i have received from other REIN members about the North West area of the city.



Pros of Skyrattler:

Established access to Century Park LRT, and Anthony Henday.

Walkscore of 52(From property of interest)

Relatively low crime rate in comparison to other areas of the city of the same income makeup.

Close to more expensive neighborhoods and developments.

South Edmonton Common is easily accessible.



The reason im tentative about the north side of the city is the crime, and class of tenant.

If anyone could shoot some holes in my barrell id really appreciate your time,



Thank you.

 

[wgraham]

This has nothing to do with whether I would, or Thomas would or Don would....it has everything to do with you! Does this area fit YOUR system, risk tolerances, tenant profile etc!

 

[brentdavies]

As an active investor and realtor, I think I can speak with some knowledge. The Rein Team does great work, and provides all REIN members with great insight and knowledge, but this still requires YOU to think for yourself and look carefully before leaping.



The northeast was the area used for the townhouse example. The problem with the northeast, is prices are still falling in some neighborhoods. Rents are off from the high of a few years ago and have stabilized. But if you bought 2 years ago in the northeast, you may still be underwater. This is why cash flow is critical, because if the resale market dips, so what! Just wait it out. Ask anyone who bought is Parkridge Estates in Beverly or RiverRidge in Abbottsfield Road about not buying in quality neighborhoods.



Pros of Skyratller

As listed above plus:

Has great neighborhoods such as Blue Quill, and Blue Quill Estates next door. Or travel south across the Anthony Henday to Rutherford.

Rents are 10-20% higher than northeast.

Tenant profile is better

Higher % of white collar workers in the neighborhoods of South West Edmonton



Cons of Skyrattler

$30,000 purchase price above the northeast

Only 1 of the 7 properties currently listed in Skyrattler are "legal" for use for rentals. the other 6 are carriage homes which all have bedroom windows that do not meet "Miniumium Housing Standards". The Alberta paradox, home owners are allowed live there, but if it is a rental property, your are in big trouble. Go figure.



The real goal of every investor is to find quality cash flow properties. So don't limit yourself to one neighborhood. You lose out in the long run. And avoid the Black Triangle of East Edmonton!