15 Marshall Street is the second property my friend Benjamin Bach from Keller Williams sent me an investment home listing for sale. This unit is located next door to 13 Marshall Street, which is a very similar property. This building houses only 5 rooms but is zoned MR-12 for boarding use. Since the building is smaller, it takes in a little bit less in rent, but is still cash positive.
Kitchener/ Waterloo/ Cambridge region is growing very fast. New home construction, Light Rail Transit, Walmart, the two universities Wilfird Laurier University and University of Waterloo expanding are all behind the Golden Triangle’s growth. The tri-city area has a large student population, as well as young professionals. With only 45 minutes away from Toronto, it is a great place for out-of-town investors who are looking for more bang for their buck. With the average home in Toronto now over $450,000 many investors are looking to sprawling urban hubs for income properties.
My favorite part about Kitchener/ Waterloo is City Council. Their approach to growth and building a sustainable city is wonderful. New construction projects and condo towers are starting to go up. A large trend is re zoning and converting factories into lofts. A trendy/ hipster community is growing that is actually involved. People are friendly and engaging. Small businesses thrive on personal interaction. With Oktoberfest and St. Jacob’s Farmer’s Market the area has a Ontario Greenbelt designation.
Lets take a look at the subject property. The house is a 2 story, 5 room structure. It is in excellent condition with approximately $20,000 in upgrades like flooring, windows, painting and new appliances. The home is fully rented so you can get cash flow immediately. Another great feature is its campus and highway 401 proximity. At $350,000, 15 Marshall Street is a steal.
Since both 13 and 15 Marshall are zoned MR-12 I did not include any analysis for live in use, only as a rental as the property would need to be re zoned. Lenders like Desjardins Bank will loan mortgages on boarding homes. I use a 30 year amortization, although 35 year and 40 year are still available thru non CMHC insured lenders. Also, a by law required 20% is used for down payment (does not have to be from own sources). I used a purchase price of $338,000 which is 96% of listing price. Mortgage Payment Calculator
Rental Income: $26,280 per year or $2190 per month
Purchase Price: $338,000
Down Payment: $67,600
Mortgage Amount: $270,400
Mortgage Payment: $1,308.08 (30 year amortization at 4.04% OAC)
Misc (Prop Mgmt, etc): $100
Total: $1,730 per month
The monthly positive cash flow is $560 a month or $6,720 a year. Now, who couldn’t use an extra $6,700 a year? You can save for down payment, take a vacation, upgrade your homes, or finally pay off those bills and become mortgage free!!!!!! On top of that you get someone paying off your mortgage and your property will appreciate an average of 4-5% per year if not more. This is a great investment for anyone overseas, especially Asia and Middle East regions especially as Canada’s economy has been out performing almost all other countries except China and a few.
To find out more information please contact Benjamin Bach at email@example.com or see the listings on his website www.benjaminbach.com
For a complete pdf version of the listing see 15 Marshall Marketing Package
To find out how you qualify for an income property please call me at 416 909 5044 or email at firstname.lastname@example.org.