All Forum Posts by: Chris Preone

 Just working on buying it for the $75k. Everything is looking good, Just wanted to double check the projected was the correct formula.. still learning. 

So just curious if my number formula is correct 

$15k down plus $15k Reno = $30k 

rental income/year  $14500 

vacancy rate 2% 

operating expensive 35% ( to cover condo fees maintenance insurance ect) 

$5500 a year mortgage 

so roughly a 12.25% cash on cash return ?  Does seem fairly reasonable 🤔 

went high on the Reno estimate and maintenance costs ect and low on the rental amounts.. so hopefully it will work out better.. 

 What areas did you invest in?    I currently bought in another province and got cash flow but still 20% down is a large number. And going to eat up the rest of the savings pretty quickly buying in that area again. 

Couple of my thoughts 

Also have to consider how are you going to move the machine? Do you need a bigger truck and a trailer, extra insurance storage..

can you rent your machine out when your not using it? Extra income 

if you live in a Snowy climate can you use it for snow removal?  Extra income 

a new mini excavator is $50k plus pretty easily can rent alot of machines for that much. 

Coming from a excavation background.. instead of calling a plumber for a quote. Call a local residential excavation company, a plumber is going to call them anyways and a good one should be able to replace it as well as do digging.  

Should be a simple half day job unless trees gas lines ect are in the way..