Looking for Advice, First Deal Wrinkle

[Kieran A Kilgour]

Hi BP community,

I want some experienced real estate investors opinions on this deal since my prospective down payment has doubled from $20k to $40k.  This is due to the fact I am moving (back) to the area to buy and while I have a job locked in, I have not started the job yet.  Mortgage broker says I now need $40k down to be accepted due to this.  As a first time home buyer in BC, Canada, I could potentially put down as little as 5%.  If I wait and get my first paycheck, which will be one or two months away, I could find another place and put 5% down instead.  So this raises the question, since I need to sink an extra $20k equity into the house, I am better off walking away and finding another place.  I really do like the deal overall, the extra $20k stretches me thinner than I had hoped, but my family can help me out with it, if I decide I want this place.

What I am looking for specifically is advice working through the returns calculation logic. With $40k down, my monthly cashflow increases (less mortgage) but my annualized return diminishes (more equity invested). Given the numbers, the fact I CAN afford it if I decide I really want it, but if I wait a month or two would be in a position to access more leverage, what do you think??

Rental report:https://www.biggerpockets.com/...

-I valued the top floor at $1500/month, plus a $200/month share of utilities and the basement at $800/month which is what I pay in rent currently.

Things I like about the place:

-fits my needs

-fits my price range

-on one acre of land within city limits (good appreciation, potentially sub dividable)

-property assessment appreciated 18% from last year

-structurally in good shape

Things I don't like

-old furnace

-1000 squ. ft. 3 bd 1 bth top floor feels a little cramped, small bedrooms, low on closets, no ensuite

-basement, while livable, needs large reno to optimize (weird layout, utilization of space)

Questions, comments appreciated.  Many thanks,

-K