15 Marshall Street: Cash Positive Student Housing for Sale in Waterloo

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.

15 Marshall Street, Waterloo, ON

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.

Local Area

Zoning Map

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.

Property Analysis

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)

Taxes:                                            $183

Utilities:                                        $25

Insurance:                                     $114

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.

Income Statement

To find out more information please contact Benjamin Bach at benjamin@benjaminbach.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 wpianka@mortgagealliance.com.

Websites: Desjardins BankBenjamin BachKeller WilliamsUniversity of WaterlooWilfrid Laurier UniversityMortgage Alliance13 Marshall StreetCMHC


About wojciechpianka

After a few years of studying English and History at the University of Toronto, I decided to transfer to Ryerson University and pursue a Bachelor of Commerce degree. While studying, I worked various jobs where I acquired many skills. Starting as a teller at Scotiabank, I moved on to being a manager of a restaurant, admin staff at a medical clinic, a sales agent for INGDirect and a manager at One King West Hotel. While all these jobs challenged me, I never felt my potential being utilized. Finally in 2008, I completed the Ontario Mortgage Agent Course and signed up with The Mortgage Alliance Company of Canada. This was a great decision, as it allowed me to use the skills I learned working to help people achieve their real estate and financial goals. My passion for real estate and numbers has lead me to becoming a mortgage agent. Growing up in New York City, I always had a fascination of historic buildings and skyscrapers. At 21, I bought my 1st property and have been investing in real estate ever since. I firmly believe thru steady, safe and conservative investing a one can obtain long term financial wealth. One day, I hope to develop the same buildings I help clients purchase.
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