I was scouring listings and ran across this one. With interest rates so low I just recently purchased an investment property (my first) so I'm always on the look out. As I read through the fact sheet on this property the numbers looked so good I just had to investigate further.
This property is a Cash Cow. If you can make 100 or 200 dollars positive cash flow per month after principal, interest and taxes...that's considered good on an investment property. I ran a number of scenarios on this property and arrived at a positive monthly cash flow range of an unbelievable $890.00 p/month to $1,277 p/month.
Not only does it provide positive cash flow, it provides a monthly income!
Here's a partial run-down:
The main level apt. is rented at $1,350 monthly. The basement is rented at $950 per month. Total monthly income = $2,300.00
Let's assume you paid full list price of $220,000 rounded (which you wouldn't) and put 5% down. With CMHC insurance fees added in you would be financing $215,000 on the purchase assuming you bought it a full list price. I make conservative assumptions because this builds in a safety net to your calculations.
Assuming a 5 year mortgage at 4.09% amortized over 25 years your monthly payments with property taxes comes to $1,409, leaving a net profit monthly of $891.00.
At a variable interest rate of 2.85% (and you can do better than this with good credit) with a 35 year amortization the monthly payments with property taxes comes to $1,074, leaving a net profit monthly of $1,226.
Or...you could live in the basement and continue to rent the main floor. You would be living for FREE while someone else pays your mortgage!
I'm surprised this one's still on the market and if I hadn't just purchased a rental I would be making an offer myself.
If you prefer Whitby, a semi-detached unit was just listed at 234,900. It also contains two apartments however it has a legal retrofit certificate.This is worth alot of money as all the conversion costs have already been done to make this both legal and fire safe. Again, the double income makes this a cash cow as well.
If you're thinking of an real estate as an investment just give me a call. We're always on the lookout for good value properties.