Northern Ontario Apartment Building
Hey there,
I was looking to get the opinions from a few people about a 16 unit apartment building in Nothern Ontario, about 7 hours past Toronto. 10% cap rate, numbers seem to work. 93K/yr from rent roll, 45K/yr expenses.
My only issue is, it's a population of 1200 people, with a 8.5% unemployment rate, and about 50KM east and west from any major city. Old paper mill closed down around 2012, with half of the then population (2400) leaving.
The government is offering incentives for people to move to Northern Ontario with 90% off vacant lots, 100% property tax forgiveness for 2 years. They're making the push to get people up there. Not sure what to think. Any thoughts would be fabulous guys!
I own 2 houses, and my rental has a great amount of equity. Not entirely sure what I should be doing next.
Most Popular Reply
@Kevin Burke First off I'd want a giant premium to invest in something that risky. Then check out what the current renter pool and the rest of the residents are doing for work and money. If there are no local schools and hospitals that might pose problems. That area, North Bay, Sudbury etc gets pretty desolate in the winter especially. Do some extra homework before you get tied up into anything and realize you may not have a viable exit. Do you live in the area and will you self manage? All the best!