Calgary V.S Niagara Falls

[Yue ChunKit]

Hi BP Canada members,

What do you think?

Found this deal in Calgary. Multi families.

Location: inner city, 5 mins to downtown

Age of building: 1960

Number of rooms: 10 all 1BR

Cap rate: 4.5

Condition: assume existing mortgage (1 to 1.5M range) at 1.75%, 5 yr term, 4 more years to go

Takeaway: lower cap rate with higher appreciation

I wish to compare this deal to:

Location: Niagara Falls

Age: 1970

Number of rooms: 8

Cap rate: 5.8

Cost: roughly 1/3 cost of above

Takeaway: higher cap rate with assumed lower appreciation? am I over optimistic about Calgary inner city?

How would you guys choose?

Thanks,

Wilson