Hello all,
This is an interesting exercise since it is not my property at play yet I am looking to get into real estate so I'm enjoying this opportunity to look into things.
An organization that I am a part of has 10 properties in a small northern alberta town. They are all older 4 mobile homes and 6 bungalows most if not all with unfinished basements. The rents range from 200 (haven't looked into that yet) to 1000$ a month and total 7570$ a month. After manager fees and all other expenses the cashflow or whatever this number would be called varies a lot month to month. In 2016 one month was 1300$ and one was 6200$ and all others in between. The last two years one total income was a little over 50k and the other was 27k.
A few questions. With older assets like these is the variance experienced typical? Looking at the property management invoices the additional expenses some months seem to be legit. Roofing, hardware, etc.
Also, what is the likely future for these assets: appreciation? Or the need to rebuild completely and then reevaluate?
I am looking at the possibility of selling and reinvesting but not sure if it's a great time to do that. Just trying to find the optimal play, or get a few options or ideas.
Also, even more helpful would be what kinds of things should I be calculating to make these type of decisions. What key factors and how to arrive at them, etc. Thanks.
This is an interesting exercise since it is not my property at play yet I am looking to get into real estate so I'm enjoying this opportunity to look into things.
An organization that I am a part of has 10 properties in a small northern alberta town. They are all older 4 mobile homes and 6 bungalows most if not all with unfinished basements. The rents range from 200 (haven't looked into that yet) to 1000$ a month and total 7570$ a month. After manager fees and all other expenses the cashflow or whatever this number would be called varies a lot month to month. In 2016 one month was 1300$ and one was 6200$ and all others in between. The last two years one total income was a little over 50k and the other was 27k.
A few questions. With older assets like these is the variance experienced typical? Looking at the property management invoices the additional expenses some months seem to be legit. Roofing, hardware, etc.
Also, what is the likely future for these assets: appreciation? Or the need to rebuild completely and then reevaluate?
I am looking at the possibility of selling and reinvesting but not sure if it's a great time to do that. Just trying to find the optimal play, or get a few options or ideas.
Also, even more helpful would be what kinds of things should I be calculating to make these type of decisions. What key factors and how to arrive at them, etc. Thanks.
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