table.plain
Property investor
I’m 119 days into looking for a Toronto rental property and could use a reality check. I’ve modelled several properties around C$276,800, but they all turn cash-flow negative once I include vacancy, management, maintenance reserves, insurance, property tax and financing at 5.50%.
Are buyers currently accepting weak cash flow, contributing more equity, or waiting for either prices or borrowing costs to improve? Tenant turnover is another variable I may be underestimating.
If anyone is still finding workable deals, I’d be interested in the actual assumptions you use: down payment, achievable rent, vacancy allowance, management percentage, annual maintenance reserve, insurance, property tax and financing sensitivity. I’m less interested in headline gross yield than in what changed your decision once you modelled the full operating costs.
Are buyers currently accepting weak cash flow, contributing more equity, or waiting for either prices or borrowing costs to improve? Tenant turnover is another variable I may be underestimating.
If anyone is still finding workable deals, I’d be interested in the actual assumptions you use: down payment, achievable rent, vacancy allowance, management percentage, annual maintenance reserve, insurance, property tax and financing sensitivity. I’m less interested in headline gross yield than in what changed your decision once you modelled the full operating costs.