2/2 Apartment Unit in the Napa of the North

[Tyson Head]

Investment Info:

Other buy & hold investment in Kelowna.

Purchase price: $145,000
Cash invested: $30,000

2/2 Apartment unit with 900sq'. Not entirely my investment but my now wife had her own place that she purchased some time back. We got together and she moved in with me and started to rent out her place. We now own the unit out right and property in Kelowna has recently skyrocketed. Unit is now appraised at $330 000 and rents out for $1500 per month. Positive cash flow of $1100 after strata (Canadian HOA), insurance and other expenses.

What made you interested in investing in this type of deal?

The deal came with the girl and we saw the value in renting it out rather then selling.

How did you find this deal and how did you negotiate it?

I found the girl sitting by the fountain by the lake and there was not too much negotiations to have her join me on a date, ha ha.

How did you finance this deal?

Now wife took care of it all before we met. Did manage to pay off the remainder of the mortgage from some cash we had left over from a live in flip we did together.

How did you add value to the deal?

No add value on our end. The unit is located in an amazing part of the word. Location, location, location. My wife did however do a major upgrade as the unit above flooded and nearly everything had to be replaced, under insurance might I add.

What was the outcome?

Positive cash flow and we hope to open a HELOC in the future and use the equity to purchase a small multi-family. Because of the location we always have high paying good quality tenants that seem to stay for 3-5 years on average.

Lessons learned? Challenges?

The location makes our life easier. Should have bought more when we had the chance.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

It was a foreclosure that my wife had to fix up. Used a traditional real estate agent.