What do you think is a good deal in Windsor Ontario?

[James Allen]

Hello BP!

Newbie here wanting some opinions. What do you look for in a property regarding cashflow per unit, cash on cash return, etc? As well as, what are some of your rules of thumb for analyzing expenses?

Heres what I have been using to analyze deals (mostly duplexes) and it seems like nothing is working. Keep in mind my goal is to create cashflow for the long term not to flip.

Cashflow: $150/month/unit+

Cash on Cash return: 10%+

Annual Cashflow Minimum: $3600+

Management: $75/door

CapEx: 8% minimum if I put some work into it upon purchase

Insurance: Roughly $125/month for a duplex

Maintenance: $75/month/door

Vacancy: 5%

Tenants pay electricity

I pay gas and water

When I run these numbers I can't usually get above $100/month/unit and around a 8% cash on cash return. 

Am I unrealistic in my expectations? To get my goals I have to put in offers that are significantly lower than asking. (example: listing price of 129K and offer of 70K)

Do you have any examples of properties that you have purchased?

Thanks in advance!

[Aditya Soma]

Hey @James Allen

95% of deals out there are not really making cash flow because the condition of the market(super hot), look for properties which need some TLC and currently rented for below market rents.

Tip from my experience: if the numbers makes sense, have to act very very quick(may be make a conditional offer right away) then do your due diligence

My Agent @Cassidy Logsdon Helped me a lot by giving me clear analysis on Location/Current rents.