All Forum Posts by: Sean Tait

Hi All,

I'm trying to underwrite a rental townhouse complex (50+ units) in Sault Ste. Marie. Ontario

This market is not exactly data rich though... does anyone have any experience in that market and know what the current comps look like from a cap rate & price per unit perspective? Any recent sales I could be pointed towards as comparables?

Thanks a bunch! 

Sean

Awesome job!

Hi @Hai Loc - I have quite a bit of experience working with developers of new apartment buildings. The economics of it is extremely challenging, frankly, because the unit price of condo's is so high in relation to the unit value of a rental unit valued on its income. It can work though, and when done right can be very profitable. 

Happy to advise on more specifics if this is something you want to explore.

Hi Jacob, thanks for starting this thread (and nice meeting up with you last week). 

I specialize in multi-family (apartment) brokerage in the Greater Toronto and Hamilton Area. Personally, I think apartments can be a fantastic and approachable investment vehicle. You may not find the same returns as in smaller single family investments, but apartments can give an investor scale and stability over the long term. 

The process is complicated, and the dollar figures are large which inherently brings risk. My team views our job as to help investors mitigate these risks and follow a process for acquisitions and dispositions that ensures you make money - but also don't lose it. 

I contacted FRPO asking for how their lobbying is going against bill 144. This was there (somewhat reassuring) response:

"Bill 144 is a private member’s bill by Peter Tabuns of the NDP. It is not a government bill. Recently the government sent a letter that stated their support for vacancy decontrol. Both the Liberals and PCs are on record as keeping vacancy decontrol.

Nevertheless we must be active and involved. This summer we are meeting with MPPs, public servants and those writing the parties platforms for the next provincial election.

Of our key points, the maintenance of vacancy decontrol is at the top."

Nice to have another Hamiltonian join the community!

This is definitely coming down the pipeline from what I have heard. The legislation is passed second reading. 

As negative as this whole program of changes are for landlords (most notably rent control) I do think a standard lease could be a positive thing for the industry. It will at least put us on the same playing field and hopefully smooth the dispute process. 

I'd be interested in hearing the exact date the standard lease is mandated though - I haven't heard one as of yet.  

Neat thoughts Matt. I think your ideas are good - it sounds like this couple do have value to add (some capital, labour, technical skills, and maybe most importantly, time). 

This might be an opportunity where some sort of house hacking could work? Buy say a 4 plex and renovate one unit at a time as they come vacant with one suite (an unrenovated one if you really want to squeeze the value) occupied by the couple as they work on the renovations. 

Hi Everyone,

Pleasure to be joining the forum (via the Podcast!).

My name is Sean Tait - I am from Nova Scotia originally but have settled in Ontario after a stint in Calgary. 

My background in real estate is in Valuation, Consulting, and Transaction Management. Currently, I work on a brokerage team specializing in apartment buildings. I also work on large student housing transactions, distressed sales, storage, modular construction & land lease deals.

My team really focuses on big deals (10-250 million) but we get a lot of smaller stuff come our way that I think are really interesting, but we don't have the time to run with.

If you are a developer, GC - an entrepreneur - someone who would like a "run down building" to turn around - you are the kind of person I like!

Very happy to help whoever I can,

Sean