Buying Revenue Properties; Not as Easy as You'd Think...
Along with my Staging biz: Fluff My House! Home Staging Inc., I have (with my hubby Dave) decided to start a rental property biz; Rent Property Edmonton.
We have been searching since before Xmas for one or two income suites/homes that we can have positive cash flow on.
We had made an offer on a foreclosure that had been on the market for around 4 months with no action & then voila as soon as we made an offer ($24K unde
r asking, hey there had been no action for more than 3 months on a foreclosure...) someone else came along, offering far more ($9K under asking) than we did, so we were left high & dry...
Since then we have found some bachelor apartments right across from one of the Big colleges in our city, with 4 suites up for grabs. They had been on the market & their listing had expired,
but not before I had seen one of the listings. We asked if we bought 3 or 4 could we get a discount... =D Their agent said we'd have to write up an offer to see what the owner thought...
Now our mortgage lady says the lenders don't like lending on anything under 600 sq ft...
These are bachelor suites one room that encompasses kitchen/living/bedroom! Of course they are under 600 sq ft!
And they are in really good shape, the building is clean, well kept AND they are already tenanted!
What's not to like!?!
Apparently, there has been a rash of rehabbed condos being fraudulent. (Not sure if it's title or what that would be fraudulent, but my REA is checking out how we can prove these are legit...)
We could buy 3 of these units, all on the 3rd floor, & have positive cash flow of over $800/m.
If this is lenders attitude this owner will never be able to sell his suites unless someone has a few hundred K in cash lying around.
We'll see what happens...
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