My third unit success story

[Maksu Ize]

This forum has given me a lot of things to think about, so I'm looking to share back some of my success.

Purchased my third unit about 6 months ago. SFH in an A area. Out of province purchase. Regina - Canada. MLS.

Purchase of 142k.

2bed-1bath.

1940s build.

Further details:

Spent a few months looking up areas, rents, house prices online. Invested 1000$ in myself for flights, stay, car rental to go and visit the city. Met up with the realtor and viewed a bunch of properties. Had a good feel for the city.

Ended up buying a house that fell through with the previous buyer, price was reduced by about 20k by the time I closed.

House repairs:

Flew out again with a friend for 3 days, did minor repairs and upgrades.

-Stick on kitchen backsplash.

-Coated the entrance steps and basement for a fresh look.

-Patio entrance framing rebuilt, was rotten.

-Painted multiple rooms and touched up all holes.

-New lighting throughout, internal and external.

-New bathroom vanity/sink, shower head, mirror.

-New door handles/locks.

-Water main rebuilt as the house had poor pressure due to the ID of the pipe being 60% clogged.

Totals: about 60hrs in labour and 5k in materials.

-Other work:

Basement was braced by others, 5k.

Unit rented 1 month later for 1650 + tenant pays all utilities.

Property manager had to do some repairs and changes to the property as per their standards, and extra 2k. In the future I will ask to meet them onsite so they can show me what needs to be done so I can DIY. First time using a property manager.

Costs breakdown:

Purchase 154k including repairs. 20% down.

Rent 1600$/mo.

Manager 160/mo

Taxes 140/mo

Insurance 90/mo

Capex at 130/mo

Vacancy at 160/mo

Maintenance at 160/mo

Mortgage locked at 2.4% for the next 3 years, 23 year term. 550/mo

Unseen expenses 100/mo

Cashflow is about 100/mo long term. We will see how this goes after a few years.

I live in a market where cashflow does not exist, appreciation only, so this is a change for me to have a positive cashflow property.

It was a massive learning experience buying out of province.

Next up: personally waiting on the further dip in prices to pick up additional units, hopefully a 4plex or such.

If history shows us anything, it's that the 10-2 bond yield is predicting a thick dip in prices, in the next 4-12 months.