$24,000 Rent

Less
$3,600 Strata (I haven't found any strata fees that are sub $300 in 2023, $300 - 450 is reasonable unless studio)
$2,000 Property Tax
$1,000 Unit Repairs & Maintenance
$2,000 Vacancy (1month average per 12 month rental)

$15,400 Profit
Less $2,200 - 3,880 trimmed off the profits with PPT management Property management costs roughly 5 - 12% = half month's rent for placement =

Total $13,200 / $500K + Tax = $510K Total Investment



Looking at 3.01% Return without ppt management, better lock in those 5% GICs if you don't think you'll get some capital gains or use leverage! Historically our capital gains over 20 - 30 years is like 3% YOY, so looking at 6.01% which is decent. Tax mans will probably skim 30 - 50% depending on your marginal income.

manage it yourself, don't pay taxes = more profit!!

If I had 500k cash, I would buy a 20 Plex in Regina for 2mil and print money like the fed in 2021

The economics don't work that great for this kind of stuff in Vancouver so I'd suggest looking elsewhere like Nanaimo or further out of town like Maple Ridge etc. I wouldn't do this kind of thing unless I could get 6-8% return plus property appreciation and the latter just ain't happening right now.

Putting your optimistic number crunching aside. Ask yourself these questions

Are you ready to deal with shit tenants?
Are you ready to deal with the bad (high rates/dropping value, etc) for the first mortgage term?
Do you have a lump sum for emergencies such as replacing appliances or tenant damage or levies that get voted in?
Do you have enough free time to drop what you're doing and deal with potential problems? (assuming you're not hiring a project manager)

Ask yourself is it worth the 4% cap rate you hope to achieve. Then ask yourself if you can carry this mortgage if the tenant leaves and you can't find a new tenant or if you lose your job? Don't think renting out is easy, cause it's not. I ran 2 rentals for clients from Sept till Dec. Both in easily rentable areas, 1 being UBC, 5 min walk to the bus loop. The UBC one took 4 months to find a tenant. Don't think it's easy money.

if i were you, id dump 500k into stonks right now. Recession is a good time to buy in and create a good stable portfolio of choice stocks.

The headache of being a landlord is way overblown. I own a Condo in maple Ridge and have a property management company look and I do dick all except reply to a few emails every year. The company can also just find you a tenant for half months rent.

You can get 4% in a GIC but in 20 years are you going to have condo that that someone else paid for?

in 20 years you'll be either dead or half dead. no point of doing something that safe.

No risk, no reward.

Only way to truly get ahead is taking some chances on stuff. If he already got a roof over his head, and has 500k to play with, i wouldnt buy a lame condo and sit on that. way too conservative.

Is the commission a half months rent to find a tenant from property management companies? Any recommendations? In the past, I usually find tenants myself but might need some help this time.

Generally, yes. 1/2 - 1 months rent. Then there's monthly fee as they'll manage for you, and the owner is usually hands off. You can also use a realtor as some are willing to do it. Some will help manage, and some won't after finding a tenant for you.

if you want them to just find you a tenant it's 1/2 a months rent. You do everything after that.

This is the company we use: Top Vision Group | ????

You have to be diversified. I own 2 properties and They have both gone up 2x.
After mortgage and strata I am pulling in 2k plus a month.

Also having some income generating property when you retire is not a bad thing.

Throw $500k in bank stonks and get an easy 4-5% div + capital appreciation. You can get higher div in more specialized companies etfs

Thanks all, very helpful especially those of you who are landlords. Consensus seems to point that it's not worth it.

Exactly, get 20 doors in Regina @ $800 - 1,300 a door:ahwow:

If you're comparing $300 - 500K homes pre 2017, I don't think that's a fair claim lol.

My calculation was before mortgage interest too! His rent would likely need to be $3 - 3.5K for a 1BR in MR before he can net 1k per unit!

You'll make money, maybe not the best ROI for the risk taken but the average person doesn't have time to seek that!

How long have you owned them dawg?

yeah if you want to be a slumlord, for sure a 20 unit plot in regina. but good luck collecting that rent unless you got some "wise guys" to help out. Seems like a challenge to do these things remotely.

that pemmican and dreamcatchers classes might come in handy

Condo about 16 years house about 7 years. Condo is fully paid off.

10 to 15 years from now do you think the condo is going to be worth less or more? Real estate is the easiest way for a person to save and grow money.

That gets really dangerous. It's reminds me of my rich cousins all boasting they can rent all 4 suites of their houses for $8,500/month and her house costed almost $1.3M in 2014! Why are you buying a 15 year old $500K 1BR that barely rents for $2k/month. Buy a house today instead so you can cash flow in the future. Spent an hour explaining to my mom and cousins that I don't make $240 - 350K/year so I don't qualify, DP no issue though :alone:

Prices of Condos + Houses today doesn't make sense considering our current and forward rent prices + housing prices. Looking back at cap rates in 2014 - 2015, they are shitty, but they're still 1 - 3% better than they are today and that's before the 2015 - 2017 giga appreciation.

Your Maple Ridge Condo that you bought 16 years ago probably costed $200k-$250k. Far cry from whitev70r looking to spend $500k with current interest rates.

yeah exactly. Mainc arent you also like 20 something? i forgot how old jooo are

the dude comes from money, his parents own a bunch of things (gas station, lumber mill, taxi stand, berry farm, whatever) so i would take richy rich's advice here with a grain of salt.

Buy the 1 bed condo and rent it to manics 10 cousins at $500 each, ??? Profit:accepted:

It was $199K. We are still looking to buy property. With all this talk about a housing crash we are looking for more property.

20 something I wish.
Join Date: Apr 2004

We where not always rich. Took a ton of hard work.

I'm not this guy.
https://www.youtube.com/shorts/ZTCJyEkbV00

People should really get into commercial real estate. None of these craps.