ADVISE NEEDED - 236 Margaret Ave, Kitchener - 10plex
Hi everyone, looking for a professional opinion on purchase of 10plex in Kitchener.
Sold History:
- March 2018 - Listed for $1.4M - property didn't sell, listing was terminated.
- July 17, 2017 - $1.15M
- Aug 03, 2016 - $0.86M
- Listing information is below.
Owner cannot provide lease agreements, instead she gave rental applications (Trying to confirm those numbers);
- Gross income: ~$7000/months
2 commercial units and one residential unit are still vacant.
Expenses: $37000/year. Which I think a bit low for that type of property.
All units in a rough shape and need reno. No structural issues.
My concern is that 3 of 7 tenants are ODSP and they live there for ever. I think the property is selling for the discount price because the landlord has a hard time to evict tenants for non payment which are financially covered under the government program. Also after
My questions are:
- How difficult it would be to evict ODSP tenants for non payment?
- What other due diligence you would do before waiving the condition?
- Is there a way to improve quality of the tenants in short term of 1-2years?
- Is that a common practice to payoff tenants to move out?
- Is anybody considered to purchase this property but decided to stay away? What was your concern?
Thanks