Welland Investors and PMs

[REInvestors888]

Hey all,

We are doing a due diligence on a 10-bed property in Central Welland, ON previously used as group home for mentally challenged individuals. Although income is excellent and collection is not a problem, we think managing these type of individuals plus potential liabilities and headaches of running the business far outweighs the income. By the way, we talked to a local PM and indicated that he is not interested in managing a group home rentals simply because of the same above mentioned reasons.

Having said that, we are thinking of renting it, per zoning by-laws, as board and lodging, rooming house, duplex or triplex or student rentals (the property is a few minute commute/drive to Niagara College and Brock University). Based on CMHC 201 6 Rental Market Report and experiences of said local PM, vacancy rate in the area is one of the lowest in Ontario.

Now my question is: Which one is the best use of this property that will generate excellent cash flow/ROIs? Which one would you choose?

Has anybody here invested or planning to invest in Welland, ON? What's your take in this southern part of Ontario? Which one is worth investing - Welland or St. Catherines or Niagara Falls, ON?

Your insights will be highly appreciated. Thanks in advance.

 

[Thomas Beyer]

Are you legally allowed to evict mentally unstable tenants as per the very tenant friendly ON rent control laws ?

Best cash flow would be renting by the hour.

Or furnished to students.

 

[REInvestors888]

It is now vacant.

Best cash flow would be renting by the hour.

I agree. But, which one? A B&B? I have to check the zoning by-laws on this.

Was thinking of student rentals. The local PM that I talked to is managing mostly student rentals.

Thanks Thomas

 

[Thomas Beyer]

Running a B&B is not real estate. It is a business with high operational costs. Are you looking for a job, or an investment ?

 

[REInvestors888]

Are you looking for a job, or an investment ?

Not interested in running a business. Simply looking for the right business operators who can afford and sustain higher long-term rent. Student rentals is good but rent is capped to a certain level due to competition and mostly short-term (8-10 mos.) lease.

 

[Thomas Beyer]

.. rent is capped to a certain level due to competition ...

So, what is your question ?

Rent is always capped.

 

[REInvestors888]

So, what is your question ?

These are my questions:

Which one is the best use of this property that will generate excellent cash flow/ROIs? Which one would you choose?

Has anybody here invested or planning to invest in Welland, ON? What's your take in this southern part of Ontario? Which one is worth investing - Welland or St. Catherines or Niagara Falls, ON?

Rent is always capped.

I agree in part. However, $$$wise, I believe you can ask higher rent from tenants/owners of profitable business versus students.

What do you think?

 

[Thomas Beyer]

These are my questions:




I agree in part. However, $$$wise, I believe you can ask higher rent from tenants/owners of profitable business versus students.

What do you think?

Is it zoned commercial ? If so, then yes the rent MAY BE higher .. or not. Depends on area, layout, traffic, curb appeal .. but not necessarily !

 

[REInvestors888]

Allowed uses are single detached, semi-detached, duplex, group home, B&B, boarding or lodging house. The property is in good location, the layout, traffic and curb appeal are also good if not excellent.

 

[Thomas Beyer]

The more tenants the better, usually .. but not always !

 

[REInvestors888]

The more tenants the better, usually .. but not always !

.
Exactly.

Many thanks Thomas

 

[REInvestors888]

Has anybody here invested or planning to invest in Welland, ON? What's your take in this southern part of Ontario? Which one is worth investing - Welland or St. Catherines or Niagara Falls, ON?

I' m still debating myself on this one. Any insights from investors, PMs, realtors from these areas?
Thank you in advance for sharing.