- Joined
- Jan 14, 2011
- Messages
- 97
Hey Investors! Whether you are struggling to find local cash flowing deals or perhaps you are looking for the next BRRRR project, it's worth looking into this hidden GEM in a market you've never heard of. Summary:
BRRRR purchase in Esterhazy SK : $285,000 (appraised $315,000) private sale
Duplex with 3rd suite generating $2,500/m. Either buy & hold for $750+/m CF or BRRRR it by adding a 4th suite. The lack of comparables in a small market is actually this deal's strength! Why? Because of the lack of comps, the price is determined INSTEAD by a rent multiplier which is 10.5x gross rents. In this case, the appraised value was determined using this method from a local appraiser ($2,500x12x10.5=$315,000). This means for an extra $800/m after the 4th suite is built, the appraisal is used on a mathematical formula instead of leaving it to risky ARV values that come up short. $3,200 x 12 x 10.5 = $403,200. This would provide $320,000 back to cover 90% of expenses and creating a cash flow of $1300+/m.
Well maintained! Upgrades to windows + roof + kitchens, already have a separate entrance, undeveloped basement, no demo needed.
Esterhazy has high incomes, Edmonton style rents, VERY low vacancies, and low entry prices. Due to this, it is an ideal rental market for cash flow.
Another Buy-and-Hold investment: For comparables for a typical Bungalow with basement suite built-in 2015: Upper rents for $1450, Lower for $1150 (Edmonton style rents). Price is $270,000 firm (Down from $330,000) Creating cash flows of $850/m+ tenants included. TRUE TURN KEY!
The cash flow in this one deal is worth 2 of a typical Edmonton property.
Management and contractors in place for a GREEN LIGHT start.
Contact Ryan for details! Verbally negotiated with sellers for all prices listed.
BRRRR purchase in Esterhazy SK : $285,000 (appraised $315,000) private sale
Duplex with 3rd suite generating $2,500/m. Either buy & hold for $750+/m CF or BRRRR it by adding a 4th suite. The lack of comparables in a small market is actually this deal's strength! Why? Because of the lack of comps, the price is determined INSTEAD by a rent multiplier which is 10.5x gross rents. In this case, the appraised value was determined using this method from a local appraiser ($2,500x12x10.5=$315,000). This means for an extra $800/m after the 4th suite is built, the appraisal is used on a mathematical formula instead of leaving it to risky ARV values that come up short. $3,200 x 12 x 10.5 = $403,200. This would provide $320,000 back to cover 90% of expenses and creating a cash flow of $1300+/m.
Well maintained! Upgrades to windows + roof + kitchens, already have a separate entrance, undeveloped basement, no demo needed.
Esterhazy has high incomes, Edmonton style rents, VERY low vacancies, and low entry prices. Due to this, it is an ideal rental market for cash flow.
Another Buy-and-Hold investment: For comparables for a typical Bungalow with basement suite built-in 2015: Upper rents for $1450, Lower for $1150 (Edmonton style rents). Price is $270,000 firm (Down from $330,000) Creating cash flows of $850/m+ tenants included. TRUE TURN KEY!
The cash flow in this one deal is worth 2 of a typical Edmonton property.
Management and contractors in place for a GREEN LIGHT start.
Contact Ryan for details! Verbally negotiated with sellers for all prices listed.
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