All Forum Posts by: Manvir G.

Hi everyone,

I'm looking into small and medium sized apartments in Windsor Ontario and just wondering how common it is for the utilities to paid for my tenants? Most of the properties I see don't cash flow well but I've seen a few with potential. Some of the properties have very high expense ratios (60%+) and I'm wondering how feasible it would be to bill the tenants for those expenses and actually turn a profit.

The buildings in question are older so I'm not even sure if they're capable of separate electricity and water but I'm inquiring into that possibility from the seller's agents. How expensive is it usually to separate the water and electricity? Would it be easier to bill back the tenants than actually separate everything? How common is this practice in Windsor Ontario? What about other places in Southern Ontario?

I'm new to real estate investing and just educating myself at the moment so any input would be appreciated. Thank you.

@Todd Dexheimer Congratulations. I'm looking into apartment buildings as well so it's nice to hear about people succeeding and finding good deals in the current market. What sources were you using for your geographic research?

@Abraham Anderson Yea, I guess asking realtors is probably the best option. Loopnet is not all that helpful in my area, they don't have a lot of properties available here.

@Abraham Anderson Thanks for clarifying your process. Is the 8.65% cap rate the average for that area?

How did you find cap rate averages for different areas? I've come across a wide range of cap rates within a couple hours drive of where I live and I was hoping to get advice on how to properly research market cap rates in different areas.

@Jon Kepler Well that does sound appealing. Do you manage your own properties or do you use a property management company?

@Thomas S. I've seen a few properties listed as "Ontario Public Housing" and I thought that government subsidized housing might be a good idea if the government is guaranteeing the rental checks. But after hearing what you have to say, I think I need to reconsider that train of thought.

@Jon Kepler Hi Jon. How long have you been investing in Owen Sound? I'm from the Toronto area looking to invest outside of my immediate market as well.

Can you tell me what appeals to you about the Owen Sound market? Thank you.

@Lucas F. Thank you for sharing your perspective.

@Thomas S. Wow I didn't think it could be that bad. If a tenant on welfare cancels the direct payment, couldn't a landlord contact the government and complain that they aren't receiving the promised rents? Wouldn't the government then deal with the tenant by either going around them to give the landlord money or by withholding payments to the tenant unless it's for rent?

I don't know much about this subject that's why I have a hard time understanding why it's so disadvantageous for landlords to have tenants on public assistance when the government should be making it appealing to have such guaranteed rents.

@Kellan P.Yes I've heard that is the risk with towns too dependent on one industry. Thank you for that. 

What do you think of the smaller towns around Sault Ste Marie? Like within a 2h drive from there. The towns are small but their real estate seems quite affordable. If the populations are steady with diverse employment opportunities then it might be worth checking out, no?