Return on Investment: 110%

Purchase Price: $1,070,000
Current Market Value: $1,300,000
Total Investment: $210,000
Cash Flow: $1,800 per month
Mortgage Paydown: $1,750 per month

The Opportunity: This property was ideally situated in prime North Oshawa which is one of the fastest growing communities in Ontario. This property required alot of work during the conditional period as a Phase II environmental discovered an underground oil tank. It took a few months but the tank was eventually removed, the soil remediated and the deal closed. The building itself had a good tenant profile but the rents were significantly undermarket. Although each apartment had a separate hydro meter, the previous landlord included hyrdo in many of the rents. Within 12 months 6 tenants moved out or were evicted and each unit was renovated. Rents were raised significantly and the hydro was added on top of the rent. Cash flow increased by $700/month and expenses decreased by $300/month. CMHC insured the first mortgage at 2.58%. The seller provided a 2nd mortgage secured against another property in the portfolio. As a result only $210,000 was required for downpayment, closing costs and remidiation costs.

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5 Units - Toronto, ON