Ottawa Real Estate Investors Organization

In November I announced at the meeting that I had made my largest real estate offer ever. I could not give details because we had just started the negotiations. I was making a $1,000,000.00 offer on all the properties in an estate. It has been quite exciting. Negotiations took much longer than anticipated, but we finally reached agreement and completed the building inspections in January.

After doing the inspections with OREIO's very own Steve Ott, I decided to decline on two properties. I must add that I was very happy with the work Steve did. He was very thorough and even lent me his spare flashlight, binocculars and camera. He was so prepared, he must have been a boyscout in a previous life!

After doing the inspections I decided to decline on two of the properties. These two units require a lot of work and I lack the experience in working with Quebec contractors. Overall comments about the properties is that wherever he replaced a window or door, he did not properly cap it and left the foam exposed. Neither unit has eavestroughing, which has resulted in land near the building getting water and some water damage.

There is very good profit potential in the buildings, if you are prepared to make the intial outlays and fix the buildings up initially. As far as I know these are still private and have not yet been listed on MLS.

As a fellow OREIO member, I am passing on high-level details to you for FREE in the event you want to pursue this potential opportunity. WHY am I doing this? As I am sharing information with you, I am hoping that you share information (CDs, books, leads, whatever) with me in the future.

AAddress 391 Du Vigneau

Nb of appts 3

Rental income 19,500.00
avg /unit 541.67

Expenses
Municial taxes 2,814.00
School taxes 370.00
Electricity & Heating
Insurance 631.00
Snow removal and lawn maintenance
Other general maintenance ($1000 per appt.) 3,000.00

Total expenses 6,815.00

Net rental income 12,685.00

Asking Price 169,900.00 **
** if all units purchased price $131,800 (this is $43,933/door !!)

Address 233 Cedar

Nb of appts 3

Rental income 19,500.00
avg /unit 541.67

Expenses
Municial taxes 2,798.00
School taxes 365.00
Electricity & Heating
Insurance 755.00
Snow removal and lawn maintenance
Other general maintenance ($1000 per appt.) 3,000.00

Total expenses 6,918.00

Net rental income 12,582.00

Asking Price 179,900.00 ***
*** if all units purchased price $143,200 (this is 47,733/door !!)

By ** and ***, I meant that is the bulk purchase price I would have gotten if I had bought then as part of the package price. THey have a lot of good potential.

** 391 Du Vigneau requies new support beams in basement. It has galvanized pipes which means potential for future leaking. It also needs soffits and new facia on part of it. Cinder blocks in back corner of addition should be fixed at some point. Garage either needs new roof or to come down, currently not safe.

*** 233 Cedar needs new roof and not just shingles, the sheathing must be replaced and you will need electrician to come in for 2 days to clean up the spiders nests of wires hanging all over in basement. It is a nice sized lot at the end of a dead street so has single family home potential.

Like I said, good profit potential but a lot of up front work to bring properties up to date. I already have building inspections if you want them as I do not need them.

I am working through final details on financing on the other 3 properties in the estate and may be looking for a joint venture partner. I will let you know. They need minimal work to bring up to date ( basically capping window frames, fix dryer vents, paint and eavestroughs). Stay tuned for details.

Happy Investing
- Babette