Need info on Edmonton neighborhood

[JimWhitelaw]

Hi,
I`m looking at a potential quick turn opportunity in Edmonton, but I don`t know the neighborhood well. I can`t tell if it`s a decent location for re-gentrification or a potential war zone.

The location is in Parkdale, 115 ave & 85 st, just north of Fort Road.

Anyone familiar with this area? What do I need to know about Parkdale?

Thx.

 

[PaulPoulsen]

QUOTE (JimWhitelaw @ Jan 11 2010, 02:11 PM) Hi,

I`m looking at a potential quick turn opportunity in Edmonton, but I don`t know the neighborhood well. I can`t tell if it`s a decent location for re-gentrification or a potential war zone.

The location is in Parkdale, 115 st & 85 Ave, just north of Fort Road.

Anyone familiar with this area? What do I need to know about Parkdale?

Thx.

We live in Delton which is north of 118th ave and west of 82nd street. We also own a number of condos along 82nd street and one in Montrose (118th east of Wayne Gretzky Drive/Fort Road).

Despite its rough edges, we really like the neighbourhood and for the most part, we`ve been very happy with our condos.

That said, you don`t choose to live in that neck of the woods: you just end up there. When my then-girlfriend (now my wife) was looking to buy for the first time, Delton was what she could afford. I`m sure given her dithers, she`d have chosen a location that`s a little more refined.

We`ve been very happy with our tenant profile but it`s a lot of work. I`m on three condo boards to ensure that the complexes are kept up and maintained and that we do everything in our power to keep out undesirable elements. Our suites have been renovated and we need to keep on top of any little repair so that the properties show exceptionally well. We go out of our way to be friendly and cordial so that tenants realize they`re not just getting one of our beautiful suites, but that they`re also getting awesome landlords. They need to see the value of living in a less desirable neighbourhood.

I`m more of a long-term guy so I don`t know how much weight you want to give my flipping advice but I think the key to a successful flip in that neck of the woods will depend on you presenting the property in such a light that buyers are willing to sacrifice the location.

It`ll have to be priced exceptionally well and it`ll also need to show exceptionally well. I also think you`ll really need to be able to justify it to buyers. What does this property deliver that justifies buying in an undesirable neighbourhood?

I think it`s possible to make money short-term down there but you`ll need to get it at the right price, have a clear, reasonable plan that you`re able to follow, and then market the hell out of it.

Best of luck.

 

[Thomas Beyer]

QUOTE (JimWhitelaw @ Jan 11 2010, 02:11 PM) Hi,

I`m looking at a potential quick turn opportunity in Edmonton, but I don`t know the neighborhood well. I can`t tell if it`s a decent location for re-gentrification or a potential war zone.

The location is in Parkdale, 115 st & 85 Ave, just north of Fort Road.

Anyone familiar with this area? What do I need to know about Parkdale?

Thx.

115 St and 85 Ave is near UofA !!!

you mean 118 Ave and 85 Street ?

too many pawnshops along 118 Ave for my taste just W of 82 Street !!

quick turn might be OK due to no tenant concerns .. so Ok if price is right !!

not great for long term hold !!

 

[JimWhitelaw]

QUOTE (ThomasBeyer @ Jan 12 2010, 09:44 PM) 115 St and 85 Ave is near UofA !!!D`oh! I meant 115 Ave & 85 St.

It`s small 1.5 storey bungalow w/ no basement. I have the opportunity to pick up this property for nothing down by taking over the financing. Current owners bought it to do a flip in July of 2007 (oops) and have lost a lot of value on it. They never wanted to be landlords, hated it and so they hired a property manager and that`s only made things worse... They just want out. It`s nicely renovated inside, looks clean. New Kitchen, bathroom, paint.

It should cashflow nicely, I`m thinking to add it to our buy & hold portfolio or put in a LTO tenant and cash out in a couple years.

Thanks for the info Paul, you managed to figure out what I meant even though I wrote it out incorrectly.

 

[tonypeters]

Jim,
I agree with Thomas and Paul. This is a "sketchy" area. Unless you can flip the property "REAL QUICK" I would not touch it!

QUOTE (JimWhitelaw @ Jan 11 2010, 02:11 PM) Hi,

I`m looking at a potential quick turn opportunity in Edmonton, but I don`t know the neighborhood well. I can`t tell if it`s a decent location for re-gentrification or a potential war zone.

The location is in Parkdale, 115 ave & 85 st, just north of Fort Road.

Anyone familiar with this area? What do I need to know about Parkdale?

Thx.

 

[ChrisDavies]

QUOTE (JimWhitelaw @ Jan 12 2010, 11:48 PM) D`oh! I meant 115 Ave & 85 St.

It`s small 1.5 storey bungalow w/ no basement. I have the opportunity to pick up this property for nothing down by taking over the financing. Current owners bought it to do a flip in July of 2007 (oops) and have lost a lot of value on it. They never wanted to be landlords, hated it and so they hired a property manager and that`s only made things worse... They just want out. It`s nicely renovated inside, looks clean. New Kitchen, bathroom, paint.

It should cashflow nicely, I`m thinking to add it to our buy & hold portfolio or put in a LTO tenant and cash out in a couple years.

Thanks for the info Paul, you managed to figure out what I meant even though I wrote it out incorrectly.

I`d be wary if it`s underwater on the LTV, but it can be a good area for rentals. I agree with the previous comments that it`s an area requiring a lot of work and focused attention. 118th Ave has a bad rap between 97th and 75th Streets, some of it deserved. Lots of hookers etc., but also some revitalization. They also turned an old movie theater into a kids skate park, which I think is pretty cool.