In my last post, I compared a house in Arbutus to a house in Killarney. I mumbled about moving 40 blocks west, and the price doubling...how about moving 4,000 kilometres east? For less?
I was just fiddling around, looking for some info. for a post that I was thinking of, and serendipited (I think I made a word up) onto this place in Kitchener, Ont.
It's a 20 unit walk-up apartment building, that appears to be fully rented, for sale @ $1.075 million. That is a bit cheaper than the Arbutus shack featured @ $1.089 million, though it does not have the prestige of that W. 16th Ave. address (snort!) The thing is, the Arbutus address is in serious need of a wrecker's ball, and another $300 - 400K to build a swish place that befits it's neighbourhood, and it would have no revenue to off-set your $8100/month mortgage (plus taxes, etc. - and don't forget the new construction...).
Here are the numbers - in case you are interested.
Now, I know that this is not apples to apples, and you would still be augmenting the payments by ~$25K/year, but if you lived in one of the apartments, you could eliminate the superintendent's and management's salaries, and you would only be down about $12K/year. You could probably make that back in appreciation (or is the place way past it's best before date?), and jack the rents up a bit, and you are on the road to riches. You would not need an income of $303 G's a year to qualify either - hell, just about anyone with a minimum-wage job could qualify.
I know that these are very different prospects, but if I was going to dump over a million bucks into a dump, it would be a dump with some income.