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.
Please see the link to an exterior photo - https://www.google.ca/maps/place/454+sunnyside,+ottawa,+email@example.com,-75.6909288,3a,75y,143.12h,90t/data=!3m6!1e1!3m4!1sitXpWBaSSTBeu-QfBCBL6Q!2e0!7i13312!8i6656!4m2!3m1!1s0x0:0xb694b9ba27151350!6m1!1e1
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