here is how my (admittedly conservative) calculator breaks this deal down:capex 5%vacancy 8%management 10%maintenance 5%insurance 1000taxes 1039debt service - 286 (60K @4% x 30)cash flow $115CoC = 9.18%OR 45% rule= (to be optimistic)9913 * .5 = 5452(NOI) - 3437(Debt) = 2015 cashflowCoC = 13.43%Maybe you can beat 50%, and get 45% expense ratio, that leaves you with 13% ROI.

That keeps me optimistic but at the same time there are lot of new condos flooding the market which would continue to pressure the rental prices. 

I'm not sure what that percentage would be in Kelowna but it sounds optimistic to me for an airbnb style rental.

{Ultimately, if the business is a good price, in a descent area and the assets are in good condition, you may not really care what the market average is}.Now, when underwriting this business make certain you capture the correct rents (and compare them to market averages); make an allowance for economic vacancy; add any ancillary revenue streams (I typically do not) to get your effective gross revenue.On the operating costs side, be certain to capture all the costs and whenever possible obtain your own estimates independent of the vendor supplied information (after all, you are interested in what it will cost you to operate the building).In my experience, a 25% CoC is somewhat optimistic for a building that is stabilized in a solid neighbourhood and, in your shoes, I would assume something was missed and revisit my analysis.

-an excited, scared, optimistic, realistic investor.G

Utilities: $1,800/year (owner pays W/S/T and averages $150/month).Total yearly expenses: $14,600Income: $2,600/month - $31,200/year (plan on increasing average rent from $480/unit to $520 - pretty comparable with other complex in town but might be optimistic)Summary:Initial investment: $85,000Yearly income: $31,200Yearly expenses: $14,600Yearly profit: $16,600So what is your feedback?

The condo has a cap rate of about 5% ( originally thought it would be 6%, but was too optimistic) and increase in condo value is between 2%-3%/year.My question to you is what to do now to maximize asset build-up?

First, you won’t be in the rehab/flip business if you can’t accurately calculate all your costs to determine your optimistic and pessimistic profit projections.

I am very optimistic about the prospect of real estate and am looking froward to interfacing with as many person as possible.Thank you

I will say I am optimistic regarding where the city as a whole is headed...lots of development and money being pumped in.