Why is Edmonton the #1 top ten town?

[seanverret]

We`re not seeing $500 cash flow, but we`re getting investors to put 25% down, taking 35 year mortgages and cash flowing close to $200/month with average rent and managing the property ourselves. An example of the types of properties we`re finding and cash flowing all day can be seen on the opportunities section of our website:

http://www.ipinvestments.ca/index.php?page=opportunities

 

[MonteDobson]

QUOTE (invst4profit @ Nov 25 2008, 07:34 AM) I am also in agreement with Neil.C2Ventures: I would like to see some examples of your deals showing real world numbers supporting $500 per door monthly positive cash flow. Unless you are buying at fire sale prices the numbers do not add up.

Hi Greg,

Here you go, I`m looking at 2 deals right now:

Example 1:
Purchase Price - $330,000 (newer up/down duplex in Alberta top 10 town)
Rental Income - $2500
Debt Service - $1407 (20% down, 35 yr amort, 5.5% interest)
Vacancy/Reserve Fund Allowance - $125 (5% of gross rents plus $5,000 upfront)
Taxes - $208 (prepaid in year 1 to further help initial cashflow)
Prop Mgt - $250 (10% of gross rents)
Insurance - $50

Net Positive Cashflow = $460/month

Example 2:
Purchase Price - $418,000 (1983 built 4-plex in Regina, SK, 4 x 3 bedroom suites, fully rented)
Rental Income - $4000
Debt Service - $1782 (10% down+10% VTB, 35 yr amort, 5.5% interest)
Debt Service #2 - $209 (10% VTB at 6%, interest only payments)
Vacancy/Reserve Fund Allowance - $200 (5% of gross rents plus $10,000 upfront)
Taxes - $250 (prepaid in year 1 to further help initial cashflow)
Prop Mgt - $400 (10% of gross rents)
Insurance - $83

Net Positive Cashflow = $1076/month

 

[nepoez]

Hi thanks everyone for the great feedback/discussion. I`ve yet again picked a few useful tips from everyone`s contribution, be it explicit or totally off topic responses. I am now able to find suited properties that have cash flowing Numbers. Nothing of good quality yet but at least now I know it`s possible.

Nepoez

 

[seeu22]

QUOTE (C2Ventures @ Nov 25 2008, 09:30 AM) Hi Greg,Here you go, I`m looking at 2 deals right now:Example 1:
Purchase Price - $330,000 (newer up/down duplex in Alberta top 10 town)
Rental Income - $2500
Debt Service - $1407 (20% down, 35 yr amort, 5.5% interest)
Vacancy/Reserve Fund Allowance - $125 (5% of gross rents plus $5,000 upfront)
Taxes - $208 (prepaid in year 1 to further help initial cashflow)
Prop Mgt - $250 (10% of gross rents)
Insurance - $50

Net Positive Cashflow = $460/month

Example 2:
Purchase Price - $418,000 (1983 built 4-plex in Regina, SK, 4 x 3 bedroom suites, fully rented)
Rental Income - $4000
Debt Service - $1782 (10% down+10% VTB, 35 yr amort, 5.5% interest)
Debt Service #2 - $209 (10% VTB at 6%, interest only payments)
Vacancy/Reserve Fund Allowance - $200 (5% of gross rents plus $10,000 upfront)
Taxes - $250 (prepaid in year 1 to further help initial cashflow)
Prop Mgt - $400 (10% of gross rents)
Insurance - $83

Net Positive Cashflow = $1076/month

Hey Monte,

Thats what I`m talking about. Those are good deals that follow the REIN system. It`s nice to see someone supporting their claims with real numbers.

Neil

 

[invst4profit]

Monte


I use different calculations to arrive at cash flow so do not see the same numbers as you.
My calculations show a negative cash flow on property #1. Property #2 shows a positive $102 per door.
In both cases I used 40% as the expected long term expenses. I would normally use 50% to calculate expenses so in reality I have not really used my own formula either.