I’m assessing a 1-bed country home in Vancouver priced at C$1,215,000, with expected rent of C$9,016 per month. That produces a headline gross yield of roughly 8.9%, which looks attractive, but vacancy could change the result materially.
My conservative model already includes a vacancy allowance, management fees, routine maintenance and a reserve for one larger repair. The building appears sound, but I may still be underestimating insurance, property tax, financing sensitivity or the cost of tenant turnover.
Which local expense would you stress-test most heavily, and what net yield would you require to justify the risk? I’d especially value a sanity check on whether C$9,016 monthly rent is sustainable for this property type rather than just an optimistic asking figure.
My conservative model already includes a vacancy allowance, management fees, routine maintenance and a reserve for one larger repair. The building appears sound, but I may still be underestimating insurance, property tax, financing sensitivity or the cost of tenant turnover.
Which local expense would you stress-test most heavily, and what net yield would you require to justify the risk? I’d especially value a sanity check on whether C$9,016 monthly rent is sustainable for this property type rather than just an optimistic asking figure.