Winnipeg rental property analysis

[Denley Thiessen]

Hi folks,

Just getting into rentals here in Winnipeg, I already have one property. I’m looking at a duplex in the North End of Winnipeg. Currently it is a duplex with potential to convert to a triplex. I’m looking for help on the financing side of things. 

Purchase price would be $120,000 and I would like to redo the upper unit and main level unit, apply for variance for the triplex (city planner has said they would support this project) convert all utilities to tenants. Renovations would be $70k-$80k. After repair value is where I get stuck a bit. Convert from a duplex to triplex deems it more of a commercial investment property and it's value should be based on NOI right?

So the units would be upper unit 3 bed 1 bath, main floor 2 bed 1 bath, and basement unit 1-2 bed and 1 bath. 

If rent is $1200, $1100, and $800 respectively for a total of $3100 gross monthly. 

I’m assuming a mortgage of $195k @ 4.25% rate.

With all those numbers and the regular cap ex, tax, insurance, etc my cash flow is just shy of $700 a month. 

So my question is, is there a mortgage product, or commercial loan, or method that would allow me to throw $75k into the mortgage of $120k for a total of $195k over 30 years?

Doing the numbers like this seems to make sense. Feasible? Any insight into this deal is greatly appreciated!

Here are the raw numbers. 

Purchase price		Purchase price	$195000.00
		Down payment	$39000.00
Unit 1	$1200.00	Amortization	30
Unit 2	$1100.00	Annual interest	4.25%
Unit 3	$800.00	Payments per year	12
Unit 4	$0.00	Monthly payment	-959.282787604978
		Yearly
Total rent	$3100.00	$37200.00
Repair (5%)	$155.00	$1860.00
Vacancy (10%)	$310.00	$3720.00
Cap ex (10%)	$310.00	$3720.00
Property management (10%)	$310.00	$3720.00
Insurance	$160.00	$1920.00
Property tax	$200.00	$2400.00
Mortgage	$959.28	$11511.39
Utilities	$0.00	$0.00
Cash flow	$695.72	$8348.61
Partnership split	$347.86
Cash flow without Management	$1005.72	$12068.61
Total revenue	$3100.00	$37200.00
Total expenses	$1319.28	$15831.39
Net revenue	$1780.72	$21368.61