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Updated about 4 years ago, 11/18/2020
Rate my duplex deal and give me some feedback (Canada)
Hey everyone, I'm looking at some expert/experienced feedback from fellow Canadian investors, or investors in general are all welcomed.
I purchased an over-under Duplex in Dartmouth, Nova Scotia for $358,000 recently. Most duplex in the area (5 KM vicinity) have sold around $275,000 to $330,000. An older downtown duplex goes for 400,000K + and my duplex is 10 min drive to downtown anyways.
Why did I offer this much? The property was completely renovated top to bottom. New floors, new roof and sides, electrical rewiring, sewer pipes, foundation repairs, water heaters, new walls, doors, electric panels, kitchen, bathrooms..etc you name it. Almost new built basically. It was very hard finding comps. It was bought as a very rough looking over-beaten single family home bungalow for $156,000K pre-covid. Seller made a killing.
In terms of cash flow, the property was empty when I bought it. I rented it to professionals out bringing in $1,400 cash flow positive a month after all expenses and mortgage paid. Cash on cash (downpayment + other expenses) I bring in about 20% annual return not including principle. So I would say around 26-30% return a year with principle.
As an FYI: All properties in this city have appreciated 15% to 20% since Covid started and rent for a two bedroom experienced the highest increase in North America according to many reports due to low supply and vacancy rate sits at 0.9%
The appraisal came in at $395,000 when I initially had 390K offered on it and went down after due to no electric setup in the garage.
The area itself is close to downtown and major attractions within just 10 minutes.. but it isn't one that will experience development as it is surrounded by mostly empty industrial zoned land for years and years and mostly older homes that are ready to be renovated and bought for cheap.
My question to all is.. I'm troubled... it has been a month since I bought and I always think about cash flow is killer VS the fact that I may have overpaid.
What do you guys think? GOOD DEAL? BAD DEAL?