Investing In Sudbury, Ontario

[Rafal Matlok]

Hi all, anyone here investing in multi family units in Sudbury, some of the deals look good, possibly up to %20 COC return, Fourplex-Sixplex for $200-300k. Some unit need TLC and I don t see appreciation but the yields look good. What am I missing ? I'm from Barrie, anyone from around there looking for a JV on a bigger scale ?

[Dijana Maderic]

Hi all, yes Sudbury has much potential.   It is a CRA head office town (employees = 3,000), has Cambrian College, Laurentian and a French College.  It also has the nickel mines.  There is diversity in employment.   My partner and I visited last month and spent the day with a Sudbury R.E. Agent (very experienced in the multi unit properties).  He took us to lots of different neighbourhoods, buildings and we actually met with lots of tenants and an owner of a building.  We were in impressed and energized by this. 

There are many GTAers who are 'parking' their money in real estate in Sudbury these days so that is driving up the prices and there is a boom right now.   Multis get sold quite quickly. 

Currently we have properties in Timmins (as well as in the GTA).   It was all about diversifying our portfolio.  We don't get that spiked property investment appreciation as our GTA properties BUT the cash flow is the huge attraction.  For example, you buy a multi for a fraction of what you would pay in the GTA, charging good rent and after paying all the bills and Property Management fees there is always money that we can deposit in the reserve or enjoy.  

Fortunately, our properties are now appreciating in Timmins - a spillover from Sudbury.