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.

[Maksu Ize]

@Adah N.

HVAC is 10 years old, HWT is leased on a monthly basis, plumbing has been upgraded to copper, roof is 10 years old.

The electrical was upgraded 20 years ago, it's out of date, but that does not mean it needs replacing in my scenario.

The upcoming repair is the sewer main, it has multiple cracks, and needs annual snaking. Apparently it can be back billed to the city, so we will see how that goes. Worst case I put in 5-7k for a replacement.

Otherwise I don't see any major repairs coming up. Ask me again in a few years when I have emptied the bank account in unforeseen issues 💰