By January 21st, 2022
Realtors bring your clients, just add your commission to the purchase price!

Purchase this Property Today for $100K BELOW Market Value!
Closing Date: February 25th, 2022
Buyer to assume all tenants

**Due to COVID-19 restrictions sight unseen offers are preferred.**

Robert Street, Penetanguishene, Ontario

About the Property

This legal 6-plex consists of four 1 bedroom apartments and two 2 bedroom apartments. The foundation is solid and there are no issues regarding the brick or siding. The driveway is paved and parking for eight cars is located at the back of the building with one parking located at the front of the house. There is no garage but there is a small shed in the back for storage. The roof was redone 5 years ago and is in great condition. There are 2 flat roofs above the middle unit that were redone in 2020. Half of the windows were redone 5 years ago and the other half are all original. The property is suited for a beginner or experienced investor looking for a fantastic multifamily BRRR Opportunity in the growing city of Penetanguishene.

About the Neighbourhood 

The subject property is situated in a good neighbourhood in Penetanguishene. The property is located down the street from downtown and is close to the Georgian Bay General Hospital. This property is situated near the Georgian Sand Beach and is close to countless amenities such as restaurants, shops on the downtown strip, Foodland, Scotiabank, LCBO, Shoppers Drug Mart, and schools. Penetanguishene is also conveniently located about 1.5 hours from the GTA.

Property Features

• Legal Sixplex
• Four 1 bedrooms
• Two 2 bedrooms
• Paved driveway, nine parking spots
• Waterfront view
• 3799 sqft above grade
• 1502 sqft below grade
• Roof was redone 5 years ago
• There are 2 flat roofs above the middle unit that were redone in 2020
• Half of the windows were replaced 5 years ago and the other half are the original
• Copper wiring, each unit has their own fuse panel
• All plumbing in the basement is PVC no sign of cast iron or galvanized pipes
• Furnace is boiler, put in 5 years ago
• Water tank owned and replaced 5 years ago
• No A/C
• Built in 1900
• Solid foundation, no issues with leaks or moisture
• Backs onto a park and has a waterfront view
• R2 zoning

How to Win with this property 

• Purchase as an as-is rental and cashflow
• Offer cash for keys and renovate units to bring rents up to market rent

We are selling our assignable purchase contract for this excellent Rental opportunity.

• Wholesale Price: $630,000 or Best Offer
• We believe that this property is worth $730,000 as-is on the MLS
• We believe that after a full cosmetic renovation this property should be worth at least $1,100,000 on the MLS.
• Purchase today for 100k BELOW MARKET VALUE

Unit Breakdown 

• Unit 1A: 1 bed, 1 bath, $804.51/month
• Unit 1B: 2 bed, 1 bath, $1100/month
• Unit 2: 1 bed, 1 bath, $1000/month
• Unit 3: 2 bed, 1 bath, $843/month
• Unit 4: 1 bed, 1 bath, $804/month
• Unit 5: 1+1 bed, 1 bath, $793/month

Cap Rate Analysis As-Is

• Annual Revenue: $64,134
• Annual Expenses: $15,391
  • Gas, Water & Hydro – $5,160
  • Insurance – $3,600
  • Property Tax – $5,131
  • Landscaping and Snow Removal – $1,500
• 5% Maintenace: $3206
• 2% Vacancy: $1282
• NOI: 44,255
• Purchase Price:
• @ 5.5% = $804,636
• @ 6% = $737,583
• @ 6.5% = $680,846

Unit Breakdown Potential

• Unit 1A: 1 bed, 1 bath, $1100/month
• Unit 1B: 2 bed, 1 bath, $1400/month
• Unit 2: 1 bed, 1 bath, $1100/month
• Unit 3: 2 bed, 1 bath, $1400/month
• Unit 4: 1 bed, 1 bath, $1100/month
• Unit 5: 1+1 bed, 1 bath $1150/month

Cap Rate Analysis After Renovations

• Annual Revenue: $87,000
• Annual Expenses: $15,391
  • Gas, Water & Hydro – $5,160
  • Insurance – $3,600
  • Property Tax – $5,131
  • Landscaping and Snow Removal – $1,500
• 5% Maintenace: $4,350
• 2% Vacancy: $1740
• NOI: 65,519
• Purchase Price:
• @ 5.5% = $1,191,255
• @ 6% = $1,091,983
• @ 6.5% = $1,007,985

Comparable Analysis

• 695 DOMINION Avenue, Midland sold in February of 2021 for $780,000. This comparable is a 5-unit multiplex making it $156,000 per door, however, Midland is a superior market. This property is more outdated than a couple of the units of the subject property. This property is similar in size and has parking for 8 vehichles (one less than ours). The comparable property is outdated and needs a full cosmetic renovation. Based on this comparable we believe our property would sell at excess of $730,000 given the market appreciation and our subject property has one more unit.
• 182 Main Street, Penetanguishene sold in July of 2021 for $590,000. This comparable is a 3-unit multiplex making it $196,667 per door. This comparable is relatively updated but is smaller in size on a per unit basis. This property is located 3 mins away from the subject property. After adjustments and a full cosmetic renovation on the subject property we believe our property would sell at excess of $1.1M or $183,333 per door.