Looking for Investment/Rental Property

[2.2vtec]

Hello,

Looking to pick up a rental unit for the 350k and under mark. Looks like with that price range I'm only left with condos but they do scare me due to the risk of special assessments etc.

In addition to the chance of some positive cash flow I would also like to have a property that could be better positioned to get some capital appreciation.

Any advice on what area, 1 or 2 bedroom, and what I should be looking for. I wouldn't mind being paired up with a real estate agent who just doesn't put my parameters in a database and send me listings that meet them.

thanks

[ercchry]

jordan is the way to go... yes he has a system like you dont like... but that more so for those that are just browsing... once you get serious he is great.


i'd say you should look for a place in the SW, around cedarbrie/woodbine area. you could get a detached home that needs updating. rent in the area is pretty damn high too.

i know i personally did pretty well with that combo

[Ven]

I hear a lot of people are scared off about condo rentals because of special assessments. I've had two on different units I own. The first was a complete replacement of the incoming water infrastructure to the building from the main, then everything greater than 2" inside the building. That cost me $750.

The second was a failing parkade wall that was leaking severely and became structurally questionable. I paid $1500 for that one.

If I had owned rental houses, rather than condos, I would have paid $10,000 to $15,000 for the water infrastructure replacement. And about the same for the basement wall repair. So ya, I'm not too worried about special assessments, I budget accordingly.

There's a pile of other reasons why I wouldn't rent a house but to each their own.

[pheoxs]

Originally posted by Ven
I hear a lot of people are scared off about condo rentals because of special assessments. I've had two on different units I own. The first was a complete replacement of the incoming water infrastructure to the building from the main, then everything greater than 2" inside the building. That cost me $750.

The second was a failing parkade wall that was leaking severely and became structurally questionable. I paid $1500 for that one.

If I had owned rental houses, rather than condos, I would have paid $10,000 to $15,000 for the water infrastructure replacement. And about the same for the basement wall repair. So ya, I'm not too worried about special assessments, I budget accordingly.

There's a pile of other reasons why I wouldn't rent a house but to each their own.

That is one thing I've noticed that people always seems to bring up. Condos suck because special assessments, people getting hit with a few thousand dollar bill because of needing to redo the roof or the siding etc.

Thing they forget is, how much is it to redo the roof on that house you bought because something leaks a couple years down the road. 10k$ repair to replace the roof? Not all that unrealistic. Or the furnance, hot water tank needing replacement, etc.

Condos aren't that much more risky if you do proper homework.

With a house you need a good inspection.

With a condo you need a good review of the condo board / reserve fund / building study.

[2.2vtec]

I've already went to the bank and been preapproved. What is Jordans contact information?

The special assessements I'm worried about are ones that are in the 5k and over range but I guess a study of the reserve fund and the condo documents will have red flags on there.

[SkiBum5.0]

He's a supporter on here - look at the top of the Real Estate section you posted in - good luck with the purchase

[JLau]

dont buy a older condo, find out about their reserve funds?

[ExtraSlow]

A study of the reserve fund should be a part of any condo purchase. Jordan can recommend someone. Ten years ago I used Condo-check and I was happy with them.

[ercchry]

Originally posted by 2.2vtec
I've already went to the bank and been preapproved. What is Jordans contact information?

The special assessements I'm worried about are ones that are in the 5k and over range but I guess a study of the reserve fund and the condo documents will have red flags on there.

his cell is the best way (middle right of page)

http://www.jordanlotoski.com/contact-merefer.asp

[BigMass]

can someone show me the math on how you're going to cash flow positive renting a 350k condo?

[ercchry]

Originally posted by BigMass
can someone show me the math on how you're going to cash flow positive renting a 350k condo?

big down payment? getting a $400k condo for $350k?

EDIT: okay, i looked into it. i'd say very possible with 20% down


so keynote building... 8th floor vs 26th... but still close i guess?

$1950 with parking

http://www.rentfaster.ca/calgary-con...NUSU5HOTI0NDM=

$345k...

http://beta.realtor.ca/propertyDetai...rtyId=13780346

so 3.1%, 25 yr, 20% down=$1322/month

plus $285 condo fees, $80 insurance, $200 taxes=$1887

so $63 positive.... which isnt bad

over a 5 year term thats $40k onto the principle... lets call it a stagnant market

so... $44k profit over 5 years with $70k down is an average yearly return of $12.5%

[BigMass]

Originally posted by ercchry


big down payment? getting a $400k condo for $350k?

EDIT: okay, i looked into it. i'd say very possible with 20% down


so keynote building... 8th floor vs 26th... but still close i guess?

$1950 with parking

http://www.rentfaster.ca/calgary-con...NUSU5HOTI0NDM=

$345k...

http://beta.realtor.ca/propertyDetai...rtyId=13780346

so 3.1%, 25 yr, 20% down=$1322/month

plus $285 condo fees, $80 insurance, $200 taxes=$1887

so $63 positive.... which isnt bad

over a 5 year term thats $40k onto the principle... lets call it a stagnant market

so... $44k profit over 5 years with $70k down is an average yearly return of $12.5%

seems very optimistic. 5 year fixed is around %3.4 , plus the cost of the unit on the 26th floor with north views vs south is going to run closer to 400k than the 350 you see listed. On top of that 6 floors down you can get the same thing with parking included for $300 less. You can't really bank on floodfrenzy pricing forever

http://calgary.kijiji.ca/c-real-esta...AdIdZ541137265

more realistically you're looking at 1500/month for a 350k place. My numbers I feel are more realistic

mortgage 1400
condo fee 300
taxes 200
insurance 80
maintenance 100
opportunity cost of 70k downpayment at %5/year = 300

expenses 2380
rent 1680
total loss of 700/month

also dont forget closing costs when buying / selling

[ercchry]

meh, there is a reason i suggested detached in the SW... i guess it really depends on how long you choose to hold the place for

[max_boost]

Buy one of those older bi-level homes or bungalows with separate entrances upper and lower.

Easily 1600+ upper and 1000+ lower. $350k range.

we have a couple in Riverbend, they are great.

[lint]

Originally posted by max_boost
Buy one of those older bi-level homes or bungalows with separate entrances upper and lower.

Easily 1600+ upper and 1000+ lower. $350k range.

Where can you find one for $350k?

[Feruk]

Taking mortgage, taxes, maintainance, insurance, condo fees, and opportunity cost into account, I doubt you'll find any "gems" in Calgary. I'll be shocked if you can be cash flow positive. I think in Calgary right now, you can either (a) invest to lose money, or (b) invest elsewhere.

[max_boost]

Originally posted by lint


Where can you find one for $350k?

There was one listed in September 48 Rivervalley crescent se. No garage, but separate entrance upper/lower. $359K I believe 1200sq.ft 1.5bath main and 3br.

Those are the best for revenue. heck if things ever got bad I would liquidate live in the basement and rent the upper so I can keep my 911 vroom vroom budget baller haha

[Disoblige]

You can get a 1 bedroom condo in downtown for < 350k. It will be small, but it's a rental, not like you're living in it. Downtown IMO is safest bet.

[lint]

Originally posted by max_boost
There was one listed in September 48 Rivervalley crescent se. No garage, but separate entrance upper/lower. $359K I believe 1200sq.ft 1.5bath main and 3br.

Those are the best for revenue. heck if things ever got bad I would liquidate live in the basement and rent the upper so I can keep my 911 vroom vroom budget baller haha

R2 Zoned? That's a great price, west side of Crowchild and that place is $500K+ easily

[ercchry]

Originally posted by lint


Where can you find one for $350k?

SW... around here:

http://goo.gl/maps/E5Apa

Originally posted by Feruk
Taking mortgage, taxes, maintainance, insurance, condo fees, and opportunity cost into account, I doubt you'll find any &quot;gems&quot; in Calgary. I'll be shocked if you can be cash flow positive. I think in Calgary right now, you can either (a) invest to lose money, or (b) invest elsewhere.

you think, i do... and i can tell you... its been great