Does this sound like a good investment?

[Weapon_R]

There is a small building for sale in a small town close to Calgary that I have just looked at. The building has 4 residential suites and 4 larger commercial ones.

Commercial tenants are currently locked into 5 year leases.

At full capacity, the building generates $51,000/year income

The cost of the building is ~$375,000.

If we were to put $50k down, and mortgage the other $325k, how large would the mortgage payments be? Does this sound like a decent investment?

[pr0]

You are looking at around 2500.00 a month. For my house, I put down close to 25% and the payments are close to 1800.00.

[69cougar]

Just hit up a mortgage calculator and punch in the #'s. Try www.tdcanadatrust.com

[350]

that a pimp investment people pay ur mortgage for you lol

[max_boost]

You can do the math here

http://www.dinkytown.net/java/PaymentOptions.html

$325K at 6.5% amortized over 25 years is $2200/month

It sounds like a great investment but you should get an accountant to look over the financials and yourself do some market research into this community to see if it has any potential for future growth.

$375K can't even buy an innercity infill, let alone generate income of $51K/year!:eek:

[Weapon_R]

Keep in mind that this is not in Calgary. It's in a town about 40 mins away.

[Xtrema]

I thought you need 1/3 down on commerical? No?