Investment apartment property
Small apartment buildings are probably the most suitable investment properties for small-scale investors or rookies. The do not require large initial capital, and operation costs are affordable as well. You just have to keep a tight grip on your vacancy rate – a sudden drop of two or three tenants can seriously damage your cashflow.
Luckily, this Investment Tip Of The Week is an extremely popular building with tenants. Its vacancy rate has been 0% in the last three years. This well maintained, nine-suite apartment building with six one bedrooms and three bachelors has a new roof reconstructed in 2006, a new boiler installed in 2007, and a newer hot water tank. The building has balconies, two storage compartments, nine energized parking spots, and upgraded hallways. It is marketed for $795,000.
Inhabited by mostly long-term tenants, its current rent is below the market average at $4800 a month. With current market rent, the cap rate is 7 per cent.
For more information, call David Tsegai at 403-383-0416.