Fredericton NB rental investing

[Andy Pembleton]

What's up BP!

I'm currently an Ontario resident looking to move to Fredericton and have my eyes on a particular property to house hack. Upper floor has 3 bedrooms and a bath and lower has a separate entrance with suitable space to make into a 1 bed apartment.

Upstairs doesn't seem to need any work to be tenant ready. However the basement needs a kitchenette installed, 5/8" drywall on the ceiling, and a bathroom expansion to accommodate a shower stall.

All in to make the basement a self sustainable apartment, I estimated roughly $32,000 in rehab costs. While living there and renting the upper unit, I'd also be making ongoing renos to the basement to add to the cosmetic value.

Is that estimate accurate? I wasn't counting for paint or small things of that sort.

Besides that, I ran the numbers and found cashflow to be positive and, if my estimate is accurate, about a 12% ROI.

Does anyone currently invest in NB that can shed some light on the markets there?

Thanks for reading my long-winded post!

[Jordan Perry]

@Steve Kolbuc

Hey Steve, I am relatively new to New Brunswick Investing, but have been doing a lot of research for the past few years such as yourself. A few years ago me and a good friend flew down to New Brunswick to check things out and get a feel for the area and the people. Since then I have been putting together my team to make investing there possible. 

The tide is definitely rising in New Brunswick (That's a pun directed at the Bay of Fundy) but it is still possible to find good deals. I have always been of the mindset that if the numbers work, it doesn't matter if the prices seem "inflated". If you are a cashflow investor such as myself, and many others who invest in New Brunswick, your return is based off of the rental income and not what is happening to the market and real estate prices. Do good analysis and due diligence before buying a property. If the numbers work, the potential is there for a good investment.

As far as supply goes, the deals that hit MLS are definitely getting more few and far between, which is why it is more important than ever to keep good relationships with your team members to help you find properties. The ones that don't hit MLS are harder to find, but usually are better deals.

As far as investing out of province goes, A good team is the backbone of a successful investment. I would be happy to share with you, and anyone else who is interested, how I chose who to work with and how they make real estate investing much more enjoyable. 

P.M me and lets chat!