All Forum Posts by: Samson Tse
Samson Tse has started 1 posts and replied 12 times.
Post: Ontario Title Searches are getting $$$$$ - any alternatives?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
I've never used speedysearch before but yes, you can do your own title search at local land registry office thru Teranet. It's not much cheaper though. I believe Teranet also has writ search which is basically an execution search.
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Very true and your assessment is pretty dead on. I think it is best for me to pass unless the price comes down substantially.
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
You are absolutely right on the repair part and that's really one of my biggest concern. There are a lot of things that needs to be fixed including roof, plumbing and mold. At this price, there is no way for me to fix all of them in the near future and I really have no desire to be a slumlord.
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
True, I should ask for more than 1 year
That's a good idea. LOI don't need to be drafted by a lawyer right? I'm trying to find some samples online.
It's pretty amazing that you received feedback after 1.5 years. I never really imagined that will happen. Thanks so much for the tips!
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Originally posted by @Aaron Montague:
I like to be at $125/door with my investments. So for this place they'd have to knock 100k off the price to get me to $750/month.
That's not likely... it's a private sale right now, I think she will just get a realtor and test her luck.
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Originally posted by @Aaron Montague:
Originally posted by @Samson Tse:
Hmm, after the vacancy adjustment, increase in maintenance/repair to 10% and including the management cost of 10%, the monthly CashFlow before tax is only $224.....
Yeah, the primary appeal of this place appears to be price. Everything included for $550/month is rather awesome. Those Hydro/Water (Hydro = sewer?) bills are insane. I figured it might be $400/year.
HOA = Home Owner's Association. Usually just a Condo thing, but once in a while neighborhoods have them attached.
This would be a good investment from a numbers perspective if the tenants each paid about $650 and took care of everything except your Hydro/Water bill.
Given everything I've seen, plus the input from Roy N, I'd pass on this place.
Thanks for all your input!
Hydro/Water is Electricity/Water, for us, the same company service both so the bills are lumped together.
I guess at this point, I'll see if there are more flex in the price, otherwise it's time to move on.
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Originally posted by @Roy N.:
Originally posted by @Samson Tse:
Hmm, after the vacancy adjustment, increase in maintenance/repair to 10% and including the management cost of 10%, the monthly CashFlow before tax is only $224.....
That sounds a little more realistic for the price-point and area.
If you are looking to target students, then your preference is to be within walking distance (<=500m). The further you get from campus, the more you need to look at availability of public transit (folks do not like to walk more than 300m), parking, bundled amenities and, naturally, price to be competitive.
We have several student rentals in two different Cities - all but one are within 4-blocks of campus. The outlier we acquired only because we paid very little for it and it had en-suite laundry (the "draw" amenity).
So the other direction from Peter Street ... not the old Victorian on Campbell?
Thanks for all the feedback. I don't think $224 per month will cut it. It's easier to just go drive for Uber for a few hours. haha
Ya, the other direction not the old Victorian on Campbell.
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Hmm, after the vacancy adjustment, increase in maintenance/repair to 10% and including the management cost of 10%, the monthly CashFlow before tax is only $224.....
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Haha, no it's not on Peter St., although I did look at a house there but couldn't pull the trigger due to the neighborhood. Are you from Windsor?
The property is actually on the opposite side of the university, so it's bad but not that bad. Within the 1km radius, there are a lot of student population.
I'll up the vacancy rate for sure. Thanks so much!
Post: Amazing opportunity or just a silly deal?
- Real Estate Investor
- Windsor, Ontario
- Posts 12
- Votes 0
Yes, they are all 1/1s (I'm assuming 1/1 means 1 bedroom, 1 bathroom)
Each unit brings in from 425-600 but the current owner is showing me 2 of the units with rent $600 and $700 which I brought it back down to $550 to get the adjusted Gross Annual Income.
Monthly mortgage payment is around $700 per month with 25% down for 20 years @ 4%.
Yup, BEFORE TAX means before personal income tax.
Expenses are broken down in my spreadsheet but I just included the whole number for simplicity.
Gas: $2,469
Hydro/Water: $6,212
Landlord Insurance Quote: $3,200
Property Tax: $3,859
Internet: $945
What's HOA?
Maintenance/repair cost: $840 (probably will increase this if you are saying $200/month)
I did not include management fee, I guess I should put that in.
Thanks for the vacancy tip, I'll adjust it to 8.1%