Full Duplex appartment, Im attempting to buy it

Buying & Selling Real Estate
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Full Duplex appartment, Im attempting to buy it

Dylan NA
Calgary, Alberta · Member since 2015 · 31 posts · 0 votes

Okay so lots of people have been giving me a ton of advice, and I have been reading like crazy lately on real estate. A big thanks to everyone on this forum. I was looking at half duplexes and single family homes, I now have been looking at full duplexes and I am absolutely blown away, by the amount they are renting for like what the hell hahah, money Is crazy.

Here are a few of the options I am looking at:

Option 1: 415,000 duplex. A total of 10 bedrooms and 5 baths. Currently rents out at 4,330 a month. Now if I put a 115,000 downpayment on it, my monthly mortgage would be 1,450 dollars minus say 500 dollars for bills such as water, gas, power, etc. Minus 7% of gross income for property manager=300 dollars. 300 dollars for house insurance and house taxes. Total expenses= 2,550 dollars. Total profit= 1780 dollars. This seems a little too good to be true, here is a link so you guys can see the property. It is a 1964, not that old in my opinion. Here is a link to the property

https://www.edmontonrealestate.pro/listing/e3437190-5503-5507-134-av-edmonton-alberta/

Option 2: 650,000 duplex. Has a total of 10 bedrooms and 6 baths. This unit has 4 individual suites. It is technically for sale for 688,000 but I would low ball a little bit and I know I could get it for 650,000. It was built in 1997 and is very new, looks amazing.
Suite 1 and 2: 3 bedrooms each, so 6 altogether

Suite 3 and 4: 2 bedrooms each, so 4 altogether


I know for the 3 bedroom suites I could easily charge 1,700 dollars for rent.  For the 2 bedroom suites I can easily charge 1,200 and get that as well. So total rent would be 5,800.

Total mortage would be 520,000 dollars, so 2,400 in mortgage, plus 500 in bills, plus 300 for house insurance and tax, plus 400 for property manager= 3600 dollars. So 2200 dollars in profit a month. This seems way way more realistic. I have no idea why the first duplex is only going for 415,000 but that seems low and generally if something seems to go to be true it usually is. 650,000 for a full duplex seems more realistic in price. What option do you think is better. here is a link to 2nd option

https://www.edmontonrealestate.pro/listing/e3436358-10433-10431-154-st-nw-edmonton-alberta/

Also I know I have made 2 posts already on which is better, if my posts are annoying or bugging anyone just let me know i don't want to upset anyone, but im still a beginner and everyone on here is giving out such good advice, i wanna ask as many questions as possible and learn

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  • Michael Boyer
    Investor · Juneau, AK · Member since 2015 · 980 posts · 741 votes
    10y

    Dylan,

    I have actually enjoyed watching your posts evolve and the learning curve.. You have  advanced from that first post in terms of strategy and I a sure after all the feedback comes in on this one, you will advance even further..

    Before everyone gets into the numbers, properties and details, are you thinking about managing them yourself (I see management mentioned above), especially if you live next door? 

    That is one threshold issue you might look at as it would improve your margin (no mgt fee) and even control your costs more closely (be it maintenance, hustling on turnarounds and vacancies, etc). The fact you are in the trades (electrician/painter) also makes me think you may have a very useful skill set to apply to the property side of landlording and could work on the people side through self study.

    Best of Luck

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  • Dylan NA
    OP
    Calgary, Alberta · Member since 2015 · 31 posts · 0 votes
    10y
    Originally posted by @Michael Boyer:

    Dylan,

    I have actually enjoyed watching your posts evolve and the learning curve.. You have  advanced from that first post in terms of strategy and I a sure after all the feedback comes in on this one, you will advance even further..

    Before everyone gets into the numbers, properties and details, are you thinking about managing them yourself (I see management mentioned above), especially if you live next door? 

    That is one threshold issue you might look at as it would improve your margin (no mgt fee) and even control your costs more closely (be it maintenance, hustling on turnarounds and vacancies, etc). The fact you are in the trades (electrician/painter) also makes me think you may have a very useful skill set to apply to the property side of landlording and could work on the people side through self study.

    Best of Luck

     Thx michael, its people like you who i am learning from so i really appreciate all the help. And yes i was thinking about using a property manager, here is why i want to: Before i was going to buy a single family, with single family property manager charges 10%. With a duplex though they only charge 4-5%:))) So if my gross income is 7,000 from the 4 suites/bedrooms than property manager takes 350 dollars, I am 110% okay with that, they have experience and know what they are doing, they also have the tools to make sure my duplex has all 4 suites filled with renters who are on 2 year lease agreements:) They also know all the legal details and know everything there is too about real estate, i on the other hand and am inexperienced, i am okay with that and willing to learn, but in my opinion 350 dollars is okay to give up for what they offer. As long as i make even 500 dollars in passive capital all be happy, but i have a feeling all make closer to 2,500 dollars to 3,000

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  • Dylan NA
    OP
    Calgary, Alberta · Member since 2015 · 31 posts · 0 votes
    10y

    anyone else?

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