Investment Condo in Edmonton - Thoughts on Return Calcs
I'm looking at purchasing a second 2 BR/2Bath unit in my building for the purpose of renting it out. I've owned a unit in this building for 10 years, and know the Condo is in good shape (financially and structurally). I also know that demand for rentals is decent in the building.
Here are the numbers I'm coming up with:
Based on purchasing the unit for $190k cash - no mortgage
Income
Monthly Rental ($1300) less 10% Vacancy = $14,040 Gross Income
Expenses (Annual)
Condo Fees = $4,300
Property Tax = $1,600
Repairs/Maintenance = $500
net Annual Income in the $7600 range for a 4% Annual Return on investment before tax.
The unit can usually be sold in the low $200ks during high season.
I'm already maxed out on TFSA and RRSP investments. The idea is to diversify my investments.
What are your thoughts on this opportunity?
Here are the numbers I'm coming up with:
Based on purchasing the unit for $190k cash - no mortgage
Income
Monthly Rental ($1300) less 10% Vacancy = $14,040 Gross Income
Expenses (Annual)
Condo Fees = $4,300
Property Tax = $1,600
Repairs/Maintenance = $500
net Annual Income in the $7600 range for a 4% Annual Return on investment before tax.
The unit can usually be sold in the low $200ks during high season.
I'm already maxed out on TFSA and RRSP investments. The idea is to diversify my investments.
What are your thoughts on this opportunity?