Canada rental property opportunity

[Matthew Davis]

Hey BP,

Wanted to run a potential deal past the community to see if it is something worth considering as my first rental property investment. And is pretty much the max I can afford at this time.

Details: Single family home converted to legal duplex 2 units both have 3 bedroom, 1 full bath, kitchen. 

Cost: $230,000 

Renos reqd: $70,000 

Potential rent when renovated: $2,600 to $3,000 /month Operating expenses/insurance/taxes/property managemnt/cap ex : $1,200/month 

Mortgage: $900/month 

Vacancy assumed at 8% 

Down payment: 20% = $46,000 

Cash for Renos: $70,000 

Would look to refinance after Renos. 

1.5hrs away from where I currently live.

Probably a C property in a C+ neighborhood.

Cashflow looks like about $450/month assuming $2800/month in rent. 

Is this something you would consider? Seems like a good opportunity and appears to cash flow on paper. Needs a lot of Renos so probably vacant for the first couple months.

I've been out of the mindset of real estate investing for the past 1.5 years as I've been focused on saving / investing in stocks to save up on a down-payment so I'm rusty on my real estate knowledge and therefore hesitant to jump into this deal. Would love your take.