All Forum Posts by: Owen Lennox

We have a 7- Plex in Kitchener that we are putting up for sale.

The property is 5 - One bedroom units & 2 - Studio units

5/7 units are completely renovated and currently vacant. The other 2 are currently occupied.

Here is a link to the property photos: https://www.myvisuallistings.com/cvtnb/343250

Here is the 3D tour link: https://my.matterport.com/show/?m=NL2gzoDw2h1&brand=0

Here are the property financials: https://drive.google.com/file/d/1elA_YpyzNfDR3aiN5VCwGm0l_8C...

Property is offer for sale for $1,650,000

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,225,000
Cash invested: $30,000

Purchased a 7 unit multi-family property using a $350,000 VTB. This property was only registered as a legal 6 plex. I converted the 7th unit into a legal unit and have since turned 4 of the 7 units over and renovated the units and increased rent.

What made you interested in investing in this type of deal?

There was large upside to the property with potential to turn the units over and generate higher rent. Also the VTB made it easier to get into the deal with only $30,000 out of my pocket on closing.

How did you find this deal and how did you negotiate it?

I found the deal from a expired listing that was getting passed over.

How did you finance this deal?

I negotiated a VTB with the seller for $350,000 at 5% interest only and the remaining was financed through private funds.

How did you add value to the deal?

Legalize the 7th unit and turned over 4 of the 7 units.

What was the outcome?

We have turned the property from being a cashflow negative property to positive cashflow and increased the building value.

Lessons learned? Challenges?

Getting tenants out of a building and renovating it is not an easy or straightforward process. So have a plan and keep pushing through as issues will come up.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the realtor and worked with the seller and other private lenders for financing.

Thanks @Brandon Sturgill we do have an accountant and they will be setting us up on quickbook. I just like to have my own spreadsheets. As all of my other properties I own have something that I can quickly look at and see how things are looking.

Does anyone out here have a spreadsheet that they use to track income and expenses for Joint Venture properties. Something that can keep track of who has put in what expenses and the income coming into the property. I have looked through the forums and can't find what I am looking for. Hopefully someone has something that will work for us.

Thanks in advance.

What is your budget and what is your ideal investment? Single Family, Mulit-family, Short term rental, Vacation rental There is something available in every market. Just depends on budget and what you are looking to get for return and work put into the properties.

I am from Kitchener/ Waterloo area and our region hasn’t dropped in price at all. Demand is still high for purchase and rentals. I feel like there are more rental available currently but the tenants are choosing the updated ones when they can. Let me know if you have a specific questions about the market in this area. 

@Jake Alsemgeest Do you have any investors that would partner with you if you are able to do the management, of the property and finding the right properties? I have worked with other investors that put down some initial investments. As far as the refi yes I know what our after repair value should be before we purchase the property and do any renovations. That is part of the reason we do the investment we have multiple exit strategies in place before we make the offer. Let me know if you have any other questions.

@Account Closed I agree, hard to find a good cashflowing turnkey sfh in this area. I have found it beneficial if you can convert those properties into duplex or triplex. Then the value is there to take the funds back on on refi and still cashflow well.

I am an investor that mainly invests in KW. Our only property outside of KW is our Waterfront cottage in Parry Sound we rent out when we are not there. We just purchased a single family home on 1/2 acre in Bloomingdale we are converting into a duplex. Will be cashflow positive over $1,000/ month after refi. Everyone else is correct. Turnkey cashflow properties are hard to come by. But still do exist. Let me know if you have any other questions.