All Forum Posts by: Laura Morlock
Laura Morlock has started 1 posts and replied 2 times.
Post: Very Cool Property - What To Do With It?!
- Real Estate Agent
- Stratford, ON Canada
- Posts 2
- Votes 0
Quote from @Bill B.:
You’ll have to adjust my US numbers to figure out how it works in Canada. But it looks like a horrible deal.
Here it would be 25% down ($275k)
A balance of $825k at 7% (or higher) $5,490/mo, figure $250/mo insurance, $500/mo property taxes $6,250/mo.
That means if you could get $6,250/mo, have zero repairs, zero maintenance, zero capex, zero vacancy, provide zero lawn/snow/landscaping, pay zero utilities, and pay zero management. You’d earn 0% on your $275k.
That don’t sound too good. You’d need all those zero and $7,250/mo just to earn a 4% return on that $275k when you could earn more guaranteed in the bank. Maybe it’s only worth $900k. Or maybe it’s too expensive for what you want to use it for. Here you would sell to someone that can run their business form the home or the garage/workshop if that’s allowed by local code.
Thanks for your thoughts Bill! The numbers are a little different ($50k down, 5% interest, property taxes $5k/yr) but the result is essentially the same. I guess that's why I'm hoping someone has a super lucrative creative idea, lol. Because (while I know emotions aren't supposed to lead the day on this!) I just *love* this property. I know the equity growth on it longterm will be excellent for what and where it is, but I can't buy just for equity right now, it needs to at least carry itself.
Post: Very Cool Property - What To Do With It?!
- Real Estate Agent
- Stratford, ON Canada
- Posts 2
- Votes 0
I have an opportunity to purchase a very beautiful and unique property - striking century manor house directly on the river, 1.5 acres, huge detached garage/workshop, in a quaint little town 15 mins to two major cities and a little under an hour west of Toronto.
I know the property inside and out, it's turnkey, and I would love to own it, but I don't know what to do with it. It would be $1.1m, and according to AirDNA it would run -$40k/yr as an STR, and while local rent rates are high it would still run about -$2500k/m.
It is such a cool and unique property I hate to let it go and would love to find a creative use for it that could at least carry itself (approx $6k/m+). I've wondered about some sort of artists'/musicians' retreat space, but not sure about the numbers of that.
I would love to hear your ideas! How would you get creative here?