My first property acquisition

[Trizzy]

I recently purchased a home in KW.

It is a legal duplex, about 30-40 years of age. The only deficiency the inspector found is the roof. Has roughly 2-3 years life expectancy. I am looking at rougly $3000+ for 25 year asphalt shingles + labour.

Currently it has no tenants.

Now understand that this essentially is not a cashflow property. This will be my primary residence(temporarily), as I intend on taking the downstairs unit. The rent that I intend on getting is based on at the very least paying off my mortgage + expenditures.

Sale Price: $324,000
Property Tax: $3,100/year or $258/month
Mortgage: (5% down + $3,000 deposit) - LTT($3,335) = $308,135 @ 3.79 over 35 years = $1,320/month
Utilities+Hydro: Estimated Approximation of $250/month for both units(Both units have never been rented, previous owner used as a SFH /w family inlaw suite)
Maintenance & Repairs: Roof in the near future of $3000+, and due to this being my primary residence, I will be doing/paying for maintenance/repairs.

So I need around $1700-$1,800 rent in order to break even. Now that may seem like alot, but the unit i`m offering has alot to give.

Upper unit is a 4+1 bedrooms /w master bedroom, 2 3-peice bathrooms, fully finished kitchen, china cabinet-furnished dining room, hardwood floors throughout, finished foyer, spacious living room, large deck with child playground. Parking for 2 cars. Their rent includes both utilities/hydro.

Lower unit(my unit) is a 1 bedroom, 1 bath, extremely spacious unit. The master is 12x18ft!, with a walk in closet. Has a gas fireplace, with quaint-sized kitchen. Fair sized, beautifully sun-lit living room. When it is time to move out, I figure I could rent this unit for $750-800/month. This property with no work at all could quite easily become a cashflowing property. It is only my current situation(lacking 20% down) that stops this property from doing so.

I think without seeing pictures, this description does not do this property justice. This property is in a great area in the KW, has great prospect for appreciation in the long term, and will give me a roof over my head, mortgage free! Lots of work to be done however, and it`s not mine yet. I get it on the 28th of June.

 

[housingrental]

Congratulations on your first home! There was a place on Westvale recently like this... Is this the one?

For an upper unit in a duplex worth $320K, $1700 rent is likely on the higher end of what you could expect unless a student rental. With utilities included and if it shows great it might be doable. What`s the address of the property?


Is the basement unit legal? Has it been registered as a duplex or accessory apartment? Do you have recent ESA and Fire department no visual deficiency letters?

 

[Trizzy]

QUOTE (housingrental @ May 31 2010, 07:39 AM) Congratulations on your first home! There was a place on Westvale recently like this... Is this the one?

For an upper unit in a duplex worth $320K, $1700 rent is likely on the higher end of what you could expect unless a student rental. With utilities included and if it shows great it might be doable. What`s the address of the property?


Is the basement unit legal? Has it been registered as a duplex or accessory apartment? Do you have recent ESA and Fire department no visual deficiency letters?

It is on 1454 Queen`s Blvd. Your from Waterloo, where are some of your properties so I can take a look, if you don`t mind?

Hydro and Utilities are included, something they don`t have to pay. What the unit has to offer plus this key selling feature, I don`t see being too difficult to get the rents I see as fair.

It is a legal Duplex, and both units are legal. It also has appropriate zoning. I have the documents showing it conforms to the ESA and Fire Department`s standard.

 

[housingrental]

Sounds like you got yourself setup well. Hopefully it works out well for you.

Without more info on the property its tough to say but from your description its likely the upper unit should rent around $1300 plus utilities. $1700 inclusive might be doable but is likely on the higher end of what you can expect.

The properties I manage or rent out are throughout Kitchener and Waterloo, some a few streets over from yours.

My investment ones are mostly near the universities. I have one for sale currently - 465 Hazel - I purchased it awhile ago for $285,0000 - You can get its info / financial info / pictures here:

http://www.teammilovick.com/real_estate_fo...p?listing_id=33

 

[Trizzy]

QUOTE (housingrental @ Jun 1 2010, 11:04 AM) Sounds like you got yourself setup well. Hopefully it works out well for you.

Without more info on the property its tough to say but from your description its likely the upper unit should rent around $1300 plus utilities. $1700 inclusive might be doable but is likely on the higher end of what you can expect.

The properties I manage or rent out are throughout Kitchener and Waterloo, some a few streets over from yours.

My investment ones are mostly near the universities. I have one for sale currently - 465 Hazel - I purchased it awhile ago for $285,0000 - You can get its info / financial info / pictures here:

http://www.teammilovick.com/real_estate_fo...p?listing_id=33

Yeah, pics would, I think, allow you the justification to see why it can and hopefully will get those kind of rents. It shows VERY well. I also did pre-meditated advertising with a similar make-believe unit. I had several people in the span of a day interested in viewing the unit, asap.

 

[housingrental]

Good luck!
Let us know how the rental works out in a few months

 

[Trizzy]

Will do, thanks for the support. I will be asking for advice sooner than later.

 

[frdm35]

QUOTE (housingrental @ Jun 1 2010, 10:04 AM) Sounds like you got yourself setup well. Hopefully it works out well for you.

Without more info on the property its tough to say but from your description its likely the upper unit should rent around $1300 plus utilities. $1700 inclusive might be doable but is likely on the higher end of what you can expect.

The properties I manage or rent out are throughout Kitchener and Waterloo, some a few streets over from yours.

My investment ones are mostly near the universities. I have one for sale currently - 465 Hazel - I purchased it awhile ago for $285,0000 - You can get its info / financial info / pictures here:

http://www.teammilovick.com/real_estate_fo...p?listing_id=33

Adam,

Why are you selling this property? Do you own other student rentals or multi-family units in KWC?

 

[lilbuffet]

awesome work!!! its pretty anti-climatic, at least that is what i found when signing the papers!

 

[housingrental]

frdm35: To answer your questions:

Why are you selling this property? Looking for larger places

Do you own other student rentals or multi-family units in KWC? Yes a number. Last purchase of a student property was 5 months ago.

 

[Trizzy]

QUOTE (housingrental @ Jun 4 2010, 08:30 AM) frdm35: To answer your questions:

Why are you selling this property? Looking for larger places

Do you own other student rentals or multi-family units in KWC? Yes a number. Last purchase of a student property was 5 months ago.

Is it a pre-conceived notion to suggest that University students are generally more difficult to deal than a SF on a day to day basis?

I am already looking down the road towards a second property, and I was just wondering if it is worth the stereotypical headache`s of dealing with students?

Do you rent to students in groups(pre-determined compatibility) or rent rooms individually?

 

[housingrental]

Is it a pre-conceived notion to suggest that University students are generally more difficult to deal than a SF on a day to day basis?
Yes. I`d still take 99% of student properties over non-student in KWC.


I am already looking down the road towards a second property, and I was just wondering if it is worth the stereotypical headache`s of dealing with students? Absolutely. Rent to purchase price, stability of revenue source, is tough to beat. This might be very far down the road for you if you`ve just bought your personal residence with high LTV. Ideally you`ll be looking for something above $500K (lower priced properties are heated currently and often selling at a premium per bed) have 35% down payment and other liquid assets.


Do you rent to students in groups(pre-determined compatibility) or rent rooms individually?
Both - generally prefer groups but this will depend on the particular property / it`s setup / it`s current tenant situation / the owner`s preference that I work for