Real estate investing can be a very rewarding and profitable. Having property in your investment portfolio is a must for anyone looking to build wealth and most of all get cash flow. Like stocks investing in real estate is deciding what type of risk you want to take on. Warren Buffet follows a strategy of buying stocks that normally pay dividends, or cash back on his investment. Good investment properties will do the same. This is a great property for foreign or out-of-town investors.
I asked my friend Benjamin Bach from Keller Williams Golden Triangle Realty to send me a few good sample listings for sale. He sent me one condo (to be discussed in a different post) and 2 student rentals in Waterloo that are next to each other. Each one will be discussed separately. 13 Marshall Street the larger of the two, is a 6 student home that produces great income. 15 Marshall Street is the other building. These properties are very popular in Kitchener/ Waterloo area which is currently flourishing. One of the best places to invest according to the Real Estate Investment Network (REIN) founded by author and investor David R. Campbell.
The Kitchener, Waterloo, Cambridge area or Golden Triangle is very interesting region in Ontario, Canada. The city enjoys a growing economy with a young professional population. Salaries are above the national average, as is the education level. WithResearch in Motion, University of Waterloo, Wilfrid Laurier University and the head quarters for many Canadian insurance companies like SunLife Insurance and the Cooperators. Student demand for rental space has kept rent prices high while property prices are relatively low compared to cities in the area like Oakville, Mississauga, and Toronto.
13 Marshall Street is located just off King Street North, about one block away from Wilfrid Laurier University. It is a 2.5 storey detached home. The property is maintained and in good condition. The selling feature for investors: fully rented, so you collect cash ASAP. The property is listed at $420,000 but a price of $400,000 a 5% decrease will be used to evaluate building. Mortgage Payment Calculator
Rental Income: $35,880 per year or $2990 per month
Purchase Price: $400,000
Down Payment: $80,000
Mortgage Amount: $320,000
Mortgage Payment: $1,548.02 (30 year amortization at 4.04% OAC)
Misc (Prop Mgmt, etc): $100
Total: $2,290 per month
The monthly positive cash flow is $700 a month or $8,400 a year.
Now here is the best part about the mortgage: your interest is tax-deductible and your tenants are paying your mortgage off. As Donald Trump University seminars say consider your property like an ice cream sundae. Your ice cream is the fact you are cash positive on your property payments. The whipped cream is your tax benefits and write-offs. Finally, the cherry on top is the fact your property will appreciate around 4-5% a year for each year your tenants PAY YOU!!!!!
This type of investment is something I highly recommend. To discuss this or any other investment property please email me at firstname.lastname@example.org.
For a full copy of the listing in pdf: 13 Marshall Marketing Package
or to visit Benjamin’s site: Benjamin Bach and view the listing with other properties.