APARTMENT BUILDING/RENTAL PROPERTY INVESTMENT
Sherbrooke House, YORKTON, SASKATCHEWAN
Area Description: Yorkton, SK: located south and west of the downtown core of Yorkton, a small city of approximately 17,000 in east-central Saskatchewan near the Manitoba border. Yorkton is a major retail, agricultural service, financial, medical, distribution, educational centre and transportation hub. The total trading area within a 100 mile radius is estimated to include 110,000 people.
Building Description: Sherbrooke House is a 25 unit low rise apartment building constructed in 1966. Variety of floorplans ranging from 380 sq ft bachelors to two bedrooms over 840 sq ft. New roof installed in 2007 and ALL exterior doors and windows replaced in 2007.
The Opportunity/Upside: Current rents below market. 1 bedroom units currently rented for $450/month and 2 bedroom units rented for $500/month. 1 bedroom rents could be increased to $485/month and 2 bedroom rents could be increased to $535/month. Possible condo conversion at ~$50,000 per unit in 2-3 years or high leverage re-finance with long term hold. UPDATE: APPRAISED AT $1,342,000 IN MAY 2009 (53% HIGHER THAN THE PRICE WE PAID FOR IT).
ROI Analysis: Click image below to enlarge.
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