Investment Condo
I have just listed another condo in south Edmonton. This is a great condo, as it is the second cheapest 2 bedroom condo in the zone. I really like the long term potential of this building as it is in a great spot (located right next to southgate mall, and the new LRT) station and it is recently under new management which is much more dedicated and committed to improving the condition of the building.
Conveniently, I also personally own 2 condos in this same building and currently sit on the condo board. They have a very healthy reserve fund, have some of the lowest condo fees in the south end, and have already done some major improvements in the roofs and windows. This particular unit is special, because not only does it have a dishwasher (majority of units in this building dont) it also has a properly vented insuite washer and drier (I believe it to be the only one out of the forty some units). In addition to that it has brand new flooring, paint, kitchen and bath so it is move in ready.
Not only is this unit bound to increase substantially in the short-term (with the new management) and long-term (with the expanding lrt and appeal/proximity to the university) but the numbers work as a rental. With %20 down and a current 3.5% interest rate, payments are $600/month. Add condo fees of $263, and property taxes of $77/month a potential investor is looking at $940/month of expenses. Rental income for a 2 bedroom in this building is between $1200-1300/month. That would leave you with a $260/month cash flow as well as a debt service ratio of 1.28 which is better than most lenders are looking for.
