ADVISE NEEDED - 236 Margaret Ave, Kitchener - 10plex

[Andrei Opal]

Hi everyone, looking for a professional opinion on purchase of 10plex in Kitchener. 

Sold History:

- March 2018 - Listed for $1.4M - property didn't sell, listing was terminated. 

- July 17, 2017 - $1.15M

- Aug 03, 2016 - $0.86M

- Listing information is below.

Owner cannot provide lease agreements, instead she gave rental applications (Trying to confirm those numbers);

- Gross income: ~$7000/months

2 commercial units and one residential unit are still vacant. 

Expenses: $37000/year. Which I think a bit low for that type of property. 

All units in a rough shape and need reno. No structural issues. 

My concern is that 3 of 7 tenants are ODSP and they live there for ever. I think the property is selling for the discount price because the landlord has a hard time to evict tenants for non payment which are financially covered under the government program. Also after 

My questions are:

- How difficult it would be to evict ODSP tenants for non payment?

- What other due diligence you would do before waiving the condition? 

- Is there a way to improve quality of the tenants in short term of 1-2years? 

- Is that a common practice to payoff tenants to move out? 

- Is anybody considered to purchase this property but decided to stay away? What was your concern? 

Thanks