Sudbury,Ontario REIN members

[Brandon Larose]

I am in Sudbury, Ontario and looking at purchasing a first rental property. I'd like to connect with others in the area if they are on this forum. I've been reading, and researching for a few months and have made a few good contacts.

Any help is appreciated, and I'm a big believer in helping when I can.

Here is an example of 1 property I am currently looking at:
Duplex
218,000
taxes: 2150
water+hydro: 2940
Gas: 1080
Insurance: 1000
Rental eqpuipment: 220
Repairs 2%: 4000
Total expenses: 7400
Mortgage: 12000
Current rent for both untits: 24000

600 Gross Revenue?

What are some other things I should be looking at?
Do these numbers make sense to look at?

 

[Thomas Beyer]

Makes sense to buy IF rents are sustainable and values of houses do not go down. Is Sudbury a place where people move to or do they leave ? How is the job situation ?

Btw: utilities should be paid by tenant not you. Switch that when tenant turns over.

 

[Brandon Larose]

Overall I would say Sudbury, in my opinion, will remain a city with a good job market and a steady population. It is definitely not somewhere that will see huge growth over the years but has diversified over the years from being a "mining" only town. Mining is still the business that brings the most money into the city, and I think that we will see that industry stay for may more years.

Rental wise, we have low vacancies and high demand for rentals from what I've seen. Appreciation will probably not be very great over the long term, but for myself I would like to own a few properties I can personally oversee.

I have looked at the possibility of only investing in REIT's or other options that give me some access to real estate long term, but like the idea of also OWNING something, and also doing rental investing as a second job/hobby.

 

[Brandon Larose]

Makes sense to buy IF rents are sustainable and values of houses do not go down. Is Sudbury a place where people move to or do they leave ? How is the job situation ?

Btw: utilities should be paid by tenant not you. Switch that when tenant turns over.

Thank you for the tip. I have been trying to find that arrangement as several people now have said the same thing.
Is this something that can only be changed when tenants leave? Not if purchased by new owner?

 

[Thomas Beyer]

You can't unilaterally change a lease.

You could ask tenant to amend lease by offering him a $125 reduction in the base lease if they now also pay hydro and water.