I have been interested in owner a rental property for a while now and have been casually looking but now I've stumbled on something that looks interesting...
One owner is selling 2 condos. (Located about 45 mins outside the GTA)
1st Condo = $120,000 CAD 2nd Condo = $130,000 CAD
Rent paid = 1000 1000
Condo Fees = 290 290
Property Tax= 100 109
Mortgage = 540 590
Total = 930 990
This is a basic cash flow for the 2 properties I put together quickly and I believe rent could be increased as basement apartments in the area go for 850-1100 and condo's go for around 1100-1400.
My question is... What are some alternative ways to finance ?
I have a stable job making around 70,000 with good credit. Been working the same job since 2014 BUT my problem is I left the job this summer to take a dream job contract but am back now. (They wouldn't approve a leave but were more than happy to have me back and my boss literally told me not to pass up the opportunity but for corporate reasons would not be able to accept the leave)
So question is do you think a bank would lend to me and if not what sort of deals do private lenders offer ?
Anyone have experience with private lenders in the GTA area and have any recommendations ?
Realtor also mentioned if both were bought they would cut me a deal. Currently only able to afford the down payment on one condo but was thinking of asking to see if they would be open to owner financing for the second.
Thanks for reading and would appreciate any feedback.
I’m also running numbers for my first property so can’t help much with the financing piece, as I’m learning as well. However - what caught my eye was the quick p&l shown above. I’m sure you already know this, but don’t forget to take into account vacancy, repairs, capex, maintenance, utilities, etc etc. Also - I’d look into the history of the condo fees - do they raise the fees periodically and what do these fees cover? I looked into some turnkey properties as I’m investing out of state (the Boston market is a tough one) and some of the tk providers gave me numbers that looked fantastic and were similar to the ones your showed...but as soon as I plugged in the other expenses, I was looking at a cash return of 3%! Hardly enticing. Anyway - hope I was able to help you and best of luck!