Thursday, December 8, 2016

Carleton University off market student housing opportunity

I have an interesting opportunity for a Carleton student housing opportunity near Sunnyside and Seneca.  There is a property, not on the market yet, asking $800,000 which is currently configured as a side by side semi detached, with 3 bedrooms and 1 bathroom on each side.  Currently, each side is rented at $1800 monthly.  

The basement is high and dry.  I have not seen it, but the owner said the ceiling is high, so you could place 1 bedroom and 1 bathroom in the basement.  There is a fuse box and an electric furnace.  I would suggest each of these will need upgrading.  This would drastically lower the cost of utilities and the additional bedroom and bathroom would add another $600 monthly income to each side (monthly).  This would make each one of the units a 4 bedroom and 2 bathroom; grossing $2400 per month total.  

I have created a ballpark spreadsheet of how this should unfold.  I estimated about a $2000 annual decrease in utilities by switching to gas furnace and approx $40,000 in renovations (general upkeep, two furnaces, two electric panels, two bathrooms and two bedrooms being built).  This would make the complete investment $840,000.  Based upon the new income and expenses, the value should be in the $860,000 range.

There is also a detached garage, which could one day become a secondary dwelling ... see attached package from the City of Ottawa.  The garage can probably be converted into a 2 bedroom and 1 bathroom unit.

The owner has a mortgage through TD Bank.  Their penalty is high, so the buyer would have to get their mortgage through TD, in a blend and extend process.  I have an excellent TD rep who can assist in the process.   

I have some additional photos the seller sent me, if you require them.

Let me know if you have any further questions, by clicking here 

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