3 Unit Duplex Rental Property in Coldstream, BC, Canada

[Saskia Dover]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Coldstream.

Purchase price: $564,375
Cash invested: $123,887

This home is a duplex with an extra suite in the building so 3 units in total and has a monthly cashflow of $1,250/mo (this does not include vacancy, repairs and maintenance which are all very minimal on this property). The neighbourhood has a very low number of rentals so any vacancies are filled quickly as it is a sought after place to live. I bought the property as a buy and hold in order to save the monthly cashflow for my next investment and for the long term equity as the mortgage is paid down.

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

I wanted a property with 3 or more suites to increase the cashflow and if a unit is vacant for a month, I would always have two other tenants rents coming in. Compared to owning a single unit rental, this is less riskier.

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

I found the deal on the MLS after 5 months of waiting for a 3+ unit property to come up in the Vernon/Coldstream area and priced under $600K. I am a realtor so I negotiated it myself.

How did you finance this deal?

I have a conventional mortgage on the property with 20% down.

How did you add value to the deal?

We built a storage shed for the tenants and have done minor upkeep and repairs since purchasing.

What was the outcome?

I plan to hold this property for the long term as it continues to have great cashflow.

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

Yes, I am a realtor with RE/MAX Kelowna so I was able to represent myself in the deal.