I have an offer on a condo that has just received engineering reports (after I made the offer) with major work to be done to the complex. The assessment is going to be between $35-45K for this particular unit; however, due to the current owner`s circumstances, I believe that the unit could actually be purchased for substantially lower than I initially offered, if financing were not a condition of the offer (has already had at least one offer fall through on financing). I will not be removing subjects on my current offer (which is below tax assessed value), but am interested in submitting a new offer based on the information contained in the engineering reports.
The condo will not be eligible for CMHC insurance, and will require 25-50% down in order to obtain financing. I am seeking a JV partner who would like to go in on this 50/50, as I do not want to tie up that much cash right now.
The condo is in a high demand rental area, and could easily be rented out for $1000/month with some minor cosmetic upgrades (paint, kitchen/hallway flooring). I have spent a good deal of time reviewing the strata documents and engineering reports, and I truly believe this will be a solid building once the remediation work is done. Rentals are completely unrestricted, and there has already been an inquiry from an interested tenant who contacted the owner asking if the new owner would consider renting.
The unit would have cash flowed at my current offer price, but the numbers do not work once you account for the upcoming assessment. With a lower offer price, it could work. I am primarily looking for cash flow, but would consider selling in 2-3 yrs if the value jumps due to completion of the recommended work.
If you think you might be interested and would like more information, please contact me no later than this Sunday, June 8 at 604-431-5527.
The condo will not be eligible for CMHC insurance, and will require 25-50% down in order to obtain financing. I am seeking a JV partner who would like to go in on this 50/50, as I do not want to tie up that much cash right now.
The condo is in a high demand rental area, and could easily be rented out for $1000/month with some minor cosmetic upgrades (paint, kitchen/hallway flooring). I have spent a good deal of time reviewing the strata documents and engineering reports, and I truly believe this will be a solid building once the remediation work is done. Rentals are completely unrestricted, and there has already been an inquiry from an interested tenant who contacted the owner asking if the new owner would consider renting.
The unit would have cash flowed at my current offer price, but the numbers do not work once you account for the upcoming assessment. With a lower offer price, it could work. I am primarily looking for cash flow, but would consider selling in 2-3 yrs if the value jumps due to completion of the recommended work.
If you think you might be interested and would like more information, please contact me no later than this Sunday, June 8 at 604-431-5527.