Real Estate

The Way Urban Towns - Erin Mills

  • Last Updated:
  • Jan 18th, 2020 11:57 pm
[OP]
Newbie
Jan 27, 2017
49 posts
29 upvotes

The Way Urban Towns - Erin Mills

Hi all,

Looking at purchasing an investment property and a friend sent me this. The Collegeway and Ridgeway in Mississauga, 1000-1350 sqft stacked towns, occupancy Oct 2022 - Thoughts?

My budget is between 600-650. Looks like similar properties are renting for ~2400.

Anyone familiar with the area? Good prospect for appreciation? Any other recommendations if not this one?

Looking for you real estate investor experts opinion, Any info would help! :)
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2 replies
Deal Addict
Nov 22, 2004
1466 posts
498 upvotes
The location is fine. I think you'd be able to get more for your money in the resale home space. Nevertheless, if you want a pre-con rental property then do the math with a longer-term view and conservative numbers:
  • Will you be cash-flow neutral/positive/negative? You'll have mortgage, condo fees, property taxes, insurance as ongoing outflow
  • If the rent ends up being less than $2400, are you still okay to carry the property? How much less are you okay with?
  • If the expenses creep up year-over-year then what's your comfortable buffer in that? Assuming you can't increase the rent beyond 1.5~2%

Try that as a starting point; all the best
Heatware: 9-0-0
Realtor @ Royal LePage Ignite Realty
Jr. Member
User avatar
Aug 11, 2019
164 posts
175 upvotes
Toronto
Let's just do a quick proforma.

$600K purchase price, you'd have to put down $120K as an investor.
At, $480K the following will take effect:

Mortgage Interest: $14,400 Yearly (3% Interest)
Property Tax: $4,800 Yearly (0.8014% Tax Rate)
Condo Maintenance: $4,200 Yearly (Based on .35cents a sf)
Condo Insurance: $600 Yearly (Higher end of condo insurance, can be as low as $25/monthly, $300 yearly)

Total Cost: $24,000

Total Cash In:

Based on $2,400 Monthly: $28,800
Based on $2,500 Monthly: $30,000
Based on $2,600 Monthly: $31,200


Best to use a super conservative $2,400 monthly in rental income. (I don't think it will be ready until mid 2023 the earliest.

Your estimated profit would be $4,800 annually.

Your cash flow would be different, mortgage would cost you a total of $24,300 yearly.
You would be at a negative cash flow of $5,100 yearly. ----> this includes principle paydown of approx. $10K yearly.
Full Time Realtor
GTA & Surrounding Areas

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