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Steeltown: What's the best bang for my buck? Triplex or Condo

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InvestJ | 17 Nov 2014, 02:22 PM Agree 0
I’m a new investor looking to make some money on a triplex apartment in Hamilton. I also hear that a house or a condo could be just as, or more, profitable. What’s the best choice for an investor looking to rent?
  • retrackers | 25 Nov 2014, 09:40 AM Agree 0
    Triplex! Spread your risk. Think about it like this:

    If you buy a condo for say $150,000.00 thats rented for $1,000.00/month. Your mortgage, taxes, maintenance fees, etc are say $750.00/month. If you lose a tenant for 2 months; you are out $500.00 in cash flow plus you have spent $1,500.00 out of your own pocket to maintain the property. That $1,500.00 loss would mean that it would take 6 months of cash flow just to break back even.

    If you purchase a (legal) triplex for say $300,000.00, and you're collecting 3x $850.00/month in rent = $2,550.00. If you're mortgage, taxes, insurance, utilities are sitting around $1,850.00/month and your cash flow is around 700.00/month. If you lose 1 tenant; your out of pocket expenses are cut down to about $150.00/month and you're paying down the principal of the mortgage worth more than that. You are spreading your risk over multiple tenants.

    Condo's are great if you are in the right market place but I would recommend owning some dirt in Hamilton - it's growing well and you will reap benefits of land value.

    These are just example numbers and are not a specific property... Hope that helps!
  • InvestJ | 02 Dec 2014, 03:20 PM Agree 0
    I see your point about owning dirt in Hamilton. Now that I look into it, the triplexes and houses are cheap enough to make a quicker return and make more on renting the place to a family or young couple. I’m wondering you know some of the best areas in Hamilton to make this kind of investment. I don’t know the area all that well, but looking for the hotspots. Any clues?
  • | 23 Dec 2014, 07:20 AM Agree 0
    I would be happy to help. Please let me know. Realtor
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