Just the facts... Home converted to duplex, just outside the Greater Toronto Area. Do these numbers make sense to the pros on here? NOTE: Canadian Case! Not sure if that makes a difference.
Buying price: $215,000
Down Payment: $43,000 <----- HELOC
Immediate repair budget: $5,000 <---- Contingency, all appears well.
Home inspection: $500
Land Transfer Tax: $1970
Legal Fees: $600
Cash for closing = $46,070
Required Investment = $61,000
Income Side:
Unit A - $1050/mo
Unit B - $1100/mo
Annual total less 10% = $23,220
Cashflow = 11% Annual, 1.1% monthly
Annual Expenses
Mortgage (5% at 5 year term, 25 yr amort. - conservative, rounded up)- $15,000/yr
Taxes (estimate) - $2200
Insurance (estimate) - $1500
Maintenance/Repairs (estimate) - $1500
Utilities - $2400
Total Annual Expenses = $22,485.00
Annual Cashflow = $735.00
Projections
Cash flow - Yr 1 = $734.96, Yr 2 = $734.96, Yr 3 = $734.96
Loan repay- Yr 1 = $4362.00, Yr 2 = $4583.00, Yr 3 = $4815.00
Capital Appreciation @ 3% Yr 1 = $6450, Yr 2 = $6,643, Yr 3 = $6842
Total ROI - Yr 1 = $11,550, Yr 2 = $11960, Yr 3 = $12,390
Rate of Return = about 20% for first three years.