Canada - 3 offer Strategy -

[Cameron Brioux]

Hi Folks,

-Moncton New Brunswick, Canada - 

I am looking for some help with a deal I am looking at.

I am looking at a 6 unit privately with a seller that would like to retire in 5 years ending his 20 year ownership. He has a small amount left on the mortgage and would like to start negotiations around $300k. Average trading price on these units in the area is around $300, if kept up.

This property does need some windows and a new roof ~$22,000 in the next year or so. The seller believes that CAP EX. neglect should not be placed 100% on him! When I rand the number around a $260+ sell it would just break even with a $20k reno considered.

I am looking for some help on strategy. We have talked about:

Straight cash - lowest possible value

Wrap option with 5-7 year terms and interest with small downpayment. - I need help understanding how this would work in Canada

Traditional financing 

Total Expense: $ Including 7% Vac, a PM value and $1,200 R/M

39,151.07

Income:$

44,640.00

Rents are on the low end for the area and could easily be increased.

Any advice and guidance would be appreciated.

Thanks,