My deal of the week last week was a townhouse that is very similar to a deal I just completed.  I did a tour two weeks ago prior to the renos being complete, so here is a video tour now that it is done.



And here are the numbers in case you are curious:
208,500 cash purchase(private financing).

$5000 for paint, counters, fixtures, install dishwasher, paint.

$215,000 appraisal.

New mortgage at 2.88% for 30yrs for $161250, payments are ~$650

2nd mortgage $400. P&I

Taxes $70

Utilities $200

Insurance $27

Strata $151

Prop Manage $187

Internet: $40


Lease agreement signed for $1877. DD and 1st mo already paid= $2815.50.

Cashflow is about ~$150/mo on a fully leveraged property!

The trouble with fully leveraged property is that the ROI is infinite, so suppose 25% downpayment were here($53,750), cashflow would be about $550/mo($6600/yr), mortgage repayment is $~3000/yr.

That is $9600/ $53,750 = 17.9% ROI/yr . Not bad, but if you factor in appreciation(these places will be $250,000 within 5 years) ROI gets closer to 30%.

These are great little deals, pick one up before prices rise too much(previously bought for $187K, now selling for $208K!!)


Until next time,