Let’s start 2010 off with a bang. For you investors reading this I have two properties I need to sell. One is a traditional rental with an upper suite and a non-conforming lower suite along with a detached garage. It is located over in Marlborough Park and currently has tenants in the upper unit and for the garage.
The upper suite has three bedrooms and one bath, while the lower is a single bedroom with bath. There is a shared laundry setup and along with the street parking, there are two gravelled spots in the back beside the garage.
The fence between the properties should be replaced in the spring or summer and it will need a new roof within the next couple of years. Those are the only major expenditures coming up. There is some work to be completed in the basement, apparently a couple hours worth of painting and sanding. Pricing is still being confirmed, but currently I believe it will be around the $325,000 mark which puts it as the second lowest priced property in the neighbourhood which would give someone a heck of a deal. If this interests you, contact me right away.
The second property is all about the cash flow. It is our biggest rooming house. Now this property has been a source of pain and suffering for me over the last six months, but it has also been our largest source of pure cash flow. With the ability to generate over $2,000 cash flow per month with vacancies or almost $4,000 when completely full, you can see why it is attractive and so lucrative.
This property is located in Ogden, has eleven furnished rooms and will include not only all of the furnishings, but we will also provide all of our systems to the lucky purchaser. We originally bought this property from another person running it as a rooming house and had to bring all of our systems in to make it work. You will be able to skip this step.
It is a full duplex with six rooms on one side and five rooms on the other. All rooms are furnished with beds, dressers, TV’s and linens. The two full kitchens and two partial kitchens are all complete with everything one needs to prepare meals, cook meals and serve meals. Also, the living rooms come complete with furniture and TV’s. To supply just the furnishings for the property would run close to $15,000 without taking into account the time and energy required to acquire and install them.
The property also is one title and is not currently subdivided. This will allow the owner to have a secondary exit plan of building a couple of infills or potentially a newer fourplex which they can sell off once they decide to sell, or they can pass on the building as a rooming house to the next individual.
We are looking at a purchase price of $525,000 currently on this. It was appraised at $500,000 for the building only, a year ago and you are aware prices have managed to crawl upwards from then, plus we are including furniture and our unique systems to streamline your operation. Once again, if this is of interest, please contact me as soon as possible. We will also have a couple smaller rooming properties coming up as we move forward this quarter so this could be the door to having your own fleet of shared accommodations and the accompanying cash flow.
I can be reached via email at bill@housez.ca or via phone at 403-870-4663, I look forward to hearing from you!
Hi Bill, does the house with 2 suites meet the 10% rule?
—-Vaughn—-
Hi Vaughn,
Currently the upper unit is rented out for $1,350 with utilities in and the garage is at $200 per month. The lower unit we previously had rented at $900 per month. This works out to a 9% solution, albeit with utilities included which confuses the issue. With the current economic situation the upper rent would need to come down if you put new tenants in place, but the garage rent could go up.
With interest rates as low as they are it fits into the correct model, although you may want to consider switching the tenants to pay their own utilities which would help your bottom line. I will be obtaining some pictures of it tomorrow I could forward to you? Or I could arrange to walk you through it at some point as well, which works for you for now?