Cash flow property Options

[Runman]

Hey all,

I was wondering everyone's opinion on what a average to good 7- plex should produce in monthy cashflow?
Obviously, it's based on region and other multiple factors, but let's say in the Saskatchewan, Alberta, and Manitoba Regions.

Thanks

Josh

[ThomasBeyer]

Hey all,

I was wondering everyone's opinion on what a average to good 7- plex should produce in monthy cashflow?
Obviously, it's based on region and other multiple factors, but let's say in the Saskatchewan, Alberta, and Manitoba Regions.

Thanks

Josh

cash-flow is a function of MORTGAGE !

More cash-flow with lower mortgage !

NOI = gross rent - vacancies - operating expenses (management fees, utilities, insurance, R&M, property taxes, advertising ..)

rents can be anywhere from $400 to $1400 per unit depending on suite size, location, quality
Op expenses run from about $3000 to $4000 per unit per year

Example:
so using $800 for rent times 7 * 12 = $67,200 in rent
10% vacancy and non-collection = $60,000
expenses of $3500 times 7 = 24,500
= cash flow of 35,000 before mortgage and major repairs/upgrades like: new carpets, new fridges, new roof, new boiler ..

mortgage of say 400,000 @ 6% using a 25 year amortization = $32,000 roughly

thus: a slightly positive property @ 6% interest rate .. but with a CMHC insured 4% mortgage a cash-flow of about $10,000 ..


Related posts worthwhile a read related to getting started .... and multi-family especially !

5 ways to make money http://www.myreinspace.com/forums/index.php?showtopic=3281

How to get started http://www.myreinspace.com/forums/index.php?showtopic=4381

Multi-Family Primer in May 2009 Issue of Canadian RE Magazine:
http://www.myreinspace.com/forums/index.php?showtopic=11459

Equity Gain not the only way to make money in RE: http://www.myreinspace.com/forums/index.php?showtopic=1224