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Landlord
The two obvious options are to pursue the apparent 8.9% gross yield or walk away until the local costs are clearer, and neither feels comfortable without better numbers. This is a 5-bed country home in Montreal at C$546,800, with expected rent of C$4,076 a month.
I have budgeted separately for empty periods, management, repairs and changing tenants, and I am testing the financing at several costs. What remains uncertain is the effect of Montreal property tax, insurance, purchase costs and any recurring expense that is easy for a new landlord to miss.
Which figures should I verify locally before going further? When comparing this type of property, do you set a minimum net yield before financing or judge it by cash flow after debt payments?
I have budgeted separately for empty periods, management, repairs and changing tenants, and I am testing the financing at several costs. What remains uncertain is the effect of Montreal property tax, insurance, purchase costs and any recurring expense that is easy for a new landlord to miss.
Which figures should I verify locally before going further? When comparing this type of property, do you set a minimum net yield before financing or judge it by cash flow after debt payments?