- Joined
- Jun 24, 2014
- Messages
- 1,578
Rep Bank
$2,785
$2,785
User Power: 274%
Hey guys.
I'm 20 years old and looking to get into real estate investing.
There's a new condo establishment under construction in downtown toronto (excellent location).
Condo is going for , 1 bed room 1 bath $364,000 (about 594 sq feet).
The rent will go for $3-3.5 per sq ft (so about $1782-2079 a month).
I can get a down payment from my uncle, 20% of purchase price = $72800.
That will leave me to get a mortgage of $291,200 at 3% for 5 years variable closed (amortization = 30 years).
Mortgage payment per year is about $1100-1200.
I am planning on renting out the property as soon as I purchase it leaving me with a return of about $682-879 per month (subtract $250 for misc. expenses) = $432-629 per month. The property will rise in value each year, I am planning on selling it in 5-7 years with a projected profit of about $150-200k (based on location, job market, businesses around area).
I'm not sure if I got everything here. This will be my first time getting into something like this. Cap rate is 3%. Can you guys please give me some advice, is this a fair investment? Is there anything else I need to watch for or add to my expenses? I don't really care how much the return is per month as all I need to make sure is the mortgage alongside the expenses is being paid by the renter (I don't want to pay even a penny each month). My motive for investing in this property is to exit in year 5-7 with a 6 digit profit (I've seen similar units in similar locations appreciate in value giving profits of $100k+ if bought on construction date).
Appreciation rate of even 1% after 5 years should leave me with $141k in profits after 5 years (normal appreciate rate for condos in toronto is about 2-5%)
Please give me some advice and what you guys think!
Thanks!
I'm 20 years old and looking to get into real estate investing.
There's a new condo establishment under construction in downtown toronto (excellent location).
Condo is going for , 1 bed room 1 bath $364,000 (about 594 sq feet).
The rent will go for $3-3.5 per sq ft (so about $1782-2079 a month).
I can get a down payment from my uncle, 20% of purchase price = $72800.
That will leave me to get a mortgage of $291,200 at 3% for 5 years variable closed (amortization = 30 years).
Mortgage payment per year is about $1100-1200.
I am planning on renting out the property as soon as I purchase it leaving me with a return of about $682-879 per month (subtract $250 for misc. expenses) = $432-629 per month. The property will rise in value each year, I am planning on selling it in 5-7 years with a projected profit of about $150-200k (based on location, job market, businesses around area).
I'm not sure if I got everything here. This will be my first time getting into something like this. Cap rate is 3%. Can you guys please give me some advice, is this a fair investment? Is there anything else I need to watch for or add to my expenses? I don't really care how much the return is per month as all I need to make sure is the mortgage alongside the expenses is being paid by the renter (I don't want to pay even a penny each month). My motive for investing in this property is to exit in year 5-7 with a 6 digit profit (I've seen similar units in similar locations appreciate in value giving profits of $100k+ if bought on construction date).
Appreciation rate of even 1% after 5 years should leave me with $141k in profits after 5 years (normal appreciate rate for condos in toronto is about 2-5%)
Please give me some advice and what you guys think!
Thanks!
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
