The Ross Report

Fourplex > Little York St, Orangeville

admin — Fri, 27 Mar 2009 18:12:48 +0000

11 Little York St. Orangeville. $450,000

I had the pleasure of visiting this beautiful building. Being a “Heritage Orangeville” member, I found this property to be very well maintained. This Victorian (actually, I think is Italianate) building has so much character inside. There are 2 large units (apartment 1 and 3) that boast the high ceilings, large baseboards, and trim. The other 2 uints are an addition on the back side of the building.

The building is fire code compliant, the lot is very large with a frontage of 45.32 feet X a depth of 280 feet. There is a laundry room for all the tenants to use, as well as ample parking. Right next door, there is a 5 plex for sale ($475,000). If you acquired both buildings, there is a great development opportunity for a condo, or larger apartment building. Lots of potential!

On the financial sheet below, please note that I feel you may get a better insurance rate then shown. I feel the number of $3,064 is very high. For a similar building I know of in town, the insurance is around $2100. Your insurance agent would give you a better idea.

Here are the numbers: (these numbers are just a guideline. Please consult your accountant before investing.) These numbers have been supplied by the seller and the sellers agent.

11 Little York st		$450,000.00
4 plex	80% Mort	$360,000.00
	20% Down	$90,000.00
	CMHC	$0.00
	Mort amount	$360,000.00

Expense	Annually	Monthly

Property Tax	($5,002.00)	($416.83)
Insurance	($3,064.00)	($255.33)
Mortgage (80%)*	($20,418.00)	($1,701.50)
Utilities	($6,360.00)	($530.00)
Maint

Total	($34,844.00)	($2,903.67)

Income	Annually	Monthly

Rent 1 (3 bed)	$14,244.00	$1,187.00
Rent 2 (2 bed)	$12,168.00	$1,014.00
Rent 3 (1 bed)	$10,320.00	$860.00
Rent 4 (Bach)	$5,520.00	$460.00


Total	$42,252.00	$3,521.00

Cash Flow	$7,408.00	$617.33

	ROI *	8.23%
	*based on annual Cash Flow/Down Payment

* Mortgage based on 4.49% amortized over 35 years

For more information, or to view this property, please call me at 519-938-2225. Â I would be happy to set up an appointment to meet with you, and go overÂ these numbers. Â Please note: For this property, we will need to give at least 48 hours notice to the tenants.

2 Unit Rental Building on Mill Street in Orangeville

admin — Mon, 16 Mar 2009 20:57:00 +0000

101 Mill St. Orangeville. $229,900

This building is a little different. I like to refer to it as the “Sugar Cube”. Its set up as a 2 apartment building, with 3 bedrooms on both the upper and lower levels. Each unit features their very own laundry, and parking. It’s located walking distance to Princess Margaret Public School, and has 2 separate hydro meters. Its a perfect building to start your real estate investment portfolio. It’s economic, and a great layout for tenants.

The building is in good shape, but needs a new flat roof (quotes range from $5,500 to $10,000). It is not retrofit, meaning it would need an inspection from a hydro authority and fire inspection.

Here are the numbers: (these numbers are just a guideline. Please consult your accountant before investing.)

101 Mill St		$229,900.00
3+3 Bedrooms	95% Mort	$218,405.00
	5% Down	$11,495.00
Â	CMHC	$17,587.35
Â	Mort amount	$235,992.35
Â	Â	Â
Expense	Annually	Monthly
Â	Â	Â
Property Tax	($2,308.74)	($192.40)
Insurance	($750.00)	($62.50)
Mortgage (95%)*	($13,384.68)	($1,115.39)
Utilities	($5,296.00)	($441.33)
Maint	Â	Â
Â	Â	Â
Total	($21,739.42)	($1,811.62)
* Mortgage based on 4.49% amortized overÂ 35 years
Â	Â	Â
Income	Annually	Monthly
Â	Â	Â
Rent 1 (3 bed)	$13,800.00	$1,150.00
Rent 2 (3 bed)	$11,520.00	$960.00
Â	Â	Â
Total	$25,320.00	$2,110.00
Â	Â	Â
Cash Flow	$3,580.58	$298.38
Â	Â	Â
Â	ROI *	31.15%
Â	*based on annual Cash Flow/Down Payment

For more information, or to view this property, please call me at 519-938-2225. Â I would be happy to set up an appointment to meet with you, and go overÂ these numbers.

UPDATE March 27/2009:

A client of mine managed to purchase this property for a great price. Â He looks forward to starting with this investment, and buying further buildings in the near future.

Make Money While You Sleep

admin — Thu, 15 Jan 2009 22:14:31 +0000

Making money while I sleep has always been appealing to me. Â When I began reading self-help books a few years ago, I started to see that I could really make money without working so hard for it. Â The Best part is, with the right property, you can make money three different ways. Â Actually, I may even prefer the fact that I only do around 3 weeks of work a year to run the properties I currently own.

Making Money 3 Ways
When you purchase rental properties you are potentially buying an investment that can pay you in 3 different ways.

1. Tenants Pay Your Mortgage
To create a good investment you must make sure your expenses are being covered by the monthly rent you charge your tenant. Â Every month you make a payment towards your mortgage, it comes closer to being paid off completely. Â

2. Property Value Appreciates
Ok, ok I know what youâ€™re thinking… the market is down right now, so how can the property go up in value? Â Well, there are no guaranrtees, but on average the property value in the Orangeville area has generally gone up over the past few years. Â If you were to purchase property now, you will likely get it for less then a year ago, allowing for higher increases over time.

3. Make Monthly Cash Flow
If you find the right property and manage to attract the right balance of rental income to cover all your properties expenses, and have some left over, you will be receiving positive â€œCash Flowâ€. Â The extra money left over each month can be used to pay for your groceries, save for a vacation, or better yet, another rental property!