Hi,
First-time poster here. I am looking for help analyzing a potential deal. I am currently a renter but have been wanting to purchase a duplex for a few years, but haven't seen any nice options come up in my area. If someone is familiar with the real estate in Northern Ontario, or just interested in providing some advice I would be grateful!
General details: All-brick building built in 1960s as a triplex, I believe, but is currently a duplex with 2-2 bedroom units and 3 bathrooms. Upper unit has 2 bedrooms, 1 bath, separate entrance, eat-in kitchen with some updates. May need windows in back of building, but newer windows in front. Main floor unit has 1 bedroom on main floor with kitchen, bathroom, dining room and living room. Dining room was formerly a bedroom. Dining room has exit to backyard deck and large backyard. Newer windows throughout and roof was done 10 yrs ago. Basement has a bedroom, large bathroom with laundry and rec-room. Garage located on site and 3 storage sheds. Main unit has been owner-occupied for 20 yrs or so and has been updated throughout and well-maintained. Owner was carpenter. Owners will do retrofit. My fiance and I would move in to the main unit for the first few years to see how we like being landlords instead of renters. We hope this would be a good investment down the road when we eventually move into a single family home.
Property type: Duplex
Asking price: $299,500
Square footage: 800 sq ft per floor (upper unit 800 sq ft of living space, main unit with basement, 1600 sq ft living space)
Current Income: Upper unit $950 incl utilities, going up to $965 incl. in October and renter intends to stay. I think the lower unit could rent for $1,200 to $1,300 conservatively. All rents would be incl. utilities as there is only one meter.
Expenses:
Property taxes: $3120
Utilities: $6,616 (includes all hydro, heat, furnace rental, water incl. water heater rental)
Heating: gas powered hot water boiler.
This is the nicest duplex I have seen in my area, and it's not currently listed on MLS which could make a cheaper deal possible if we don't use a realtor. My intention is to buy a duplex to live in (with a 5% downpayment) and then eventually move out leaving a cash flowing investment property. I find based on my analyses I never seem to get a good enough cash flow to make things worthwhile without buying way below asking price. I think that's a by-product of me being quite conservative, and prices being generally high in my area.
Any advice would be appreciated!
Thanks,
Dea
