All Forum Posts by: Michael Sifontes

Hello Bigger Pockets team, I am looking for a formula to help me gauge what price I should purchase a multi unit property for. I am looking for a 4-5 plex, I live in Burlington, Ontario. I don’t want to over pay for a property so I would like a guideline or template to follow. I’m looking for something based on the raw numbers of income and expenses that gives me what a property is worth. Property 1 RENTS TAXES UTIL Total 3,073 208.14 817.07 Apt 1 548 Apt 2 575 Apt 3 600 Apt 4 625 Apt 5 725 Property 2 RENTS TAXES UTIL Total 2,165 137.41 460.71 Apt 1 595 Apt 2 795 Apt 3 775 Property 3 RENTS TAXES UTIL Total. 1,695 133.25 327.86 Apt 1 550 Apt 2 550 Apt 3 595 Property 5 RENTS TAXES UTIL Total 2,310 141.23 456.33 Apt 1 750 Apt 2 835 Apt 3. 725 Property 6 RENTS TAXES UTIL Total 2,875 136.67 156.54 Apt 1 725 Apt 2 825 Apt 3 800 Apt 4 525 Property 7 RENTS TAXES UTIL Total 2,200 165.43 478.75 Apt 1 950 Apt 2 550 Apt 3 700 Property 8 RENTS TAXES UTIL Total 3,575 413.27 286.21 Apt 1 800 Apt 2 725 BSMNT 250 Comm 1,800 Property 9 RENTS TAXES UTIL Total 2,238 152 471.23 A 625 B 575 C 600 D 438 Any help is appreciated. I have some examples of deals on the table I am considering.

No Daryl.

Hey guys, Let me give you some more information on this property...... While I did already purchase it I am still learning so identifying if I made and mistakes is stubs valuable lesson for me. Asking price- 385k Purchase price - 340k Estimated Reno’s - 40k My investment -76 k Expenses (annual) Insurance-2200 Hydro-750 Taxes-3500 Misc-1000 Income monthly Unit 1-750 plus hydro and 1/5 gas Unit 2-750 plus hydro and 1/5 gas Unit 3-750 plus hydro and 1/5 gas Unit 4-650 plus hydro and 1/5 gas Unit 5-650 plus hydro and 1/5 gas My Reno’s include: New laminate in all units Refurbished stainless steel appliances Ikea kitchen and vanity Stackable laundry in each unit All new plumbing fixtures New Furnace/Ac and water heater Side note I own an hvac and plumbing company so I get that stuff dirt cheap and will get my guys to install them. Another question I have is it too ambitious of me to put a card operated system for each laundry machine? All units will have smart locks on them and I will include WiFi to my tenants. If I were to renovate the basement I estimate it would cast 30-35k and get me 2 units for about 500$ per month inclusive per unit. I’m just not sure I can get the permits. Thinking about it..... it would make more sense for me to put that money towards another multi unit purchase..... please share your thoughts guys.

Brett do you have a formula I could reference to determine a fair purchase price for a rental property?

Also to be clear. The the renovation numbers does not include the two units I would want to put in the basement (pending zoning approval) I estimate 30K to net me an extra 850 in rent.

I’ll be getting finance on 380K-20%=76k initial investment.

Hello guys,

So I was wondering if any of you can share any templates or rules of thumb you have when deciding if a property is worth the investment. For example, I recently purchased a 5-plex (3-1 bed and 2-Bach) in London Ontario (1.3% vacancy)for 340,000$ I estimate 40,000$ needed to bring the building to tip top shape. I can get around 42,000$ per year in rental income once I renovate. Annual expenses will be about 6500$ total. So my question is..... did I pay too much for this building? From my numbers I cash flow about 20,000$ a year pre-tax. Is there a formula you have that can let me know how much I should pay for a property based of the historic numbers?

Secondly I was also thinking to turn the basement into 2 more bachelor units. How hard will it be for me to get the property rezoned? Can I apply before I am the actual owner? Any help will be greatly appreciated.

My initial investment for this will be about 76,000$

Hello guys, So I was wondering if any of you can share any templates or rules of thumb you have when deciding if a property is worth the investment. For example, I recently purchased a 5-plex (3-1 bed and 2-Bach) in London Ontario (1.3% vacancy)for 340,000$ I estimate 40,000$ needed to bring the building to tip top shape. I can get around 42,000$ per year in rental income once I renovate. Annual expenses will be about 6500$ total. So my question is..... did I pay too much for this building? From my numbers I cash flow about 20,000$ a year pre-tax. Is there a formula you have that can let me know how much I should pay for a property based of the historic numbers? Secondly I was also thinking to turn the basement into 2 more bachelor units. How hard will it be for me to get the property rezoned? Can I apply before I am the actual owner? Any help will be greatly appreciated. My initial investment for this will be about 76,000$

Hello guys, So I was wondering if any of you can share any templates or rules of thumb you have when deciding if a property is worth the investment. For example, I recently purchased a 5-plex (3-1 bed and 2-Bach) in London Ontario (1.3% vacancy)for 340,000$ I estimate 40,000$ needed to bring the building to tip top shape. I can get around 42,000$ per year in rental income once I renovate. Annual expenses will be about 6500$ total. So my question is..... did I pay too much for this building? From my numbers I cash flow about 20,000$ a year pre-tax. Is there a formula you have that can let me know how much I should pay for a property based of the historic numbers? Secondly I was also thinking to turn the basement into 2 more bachelor units. How hard will it be for me to get the property rezoned? Can I apply before I am the actual owner? Any help will be greatly appreciated. My initial investment for this will be about 76,000$