I would be interested to hear how you have build, rent and profit at $700/month.
I need the land for free (City or crown property). I need development cost charges waived.
Then I will build 4-floor apartment walk-up (no elevator) blocks with just studio suites. 32 per floor (30 on the ground level), for a total of 126 suites. They actually each have a bathroom with toilet and sink and stand-up shower (no tub). They are all between 195 and 250 sq. ft. with no balcony.
I might need an annual property tax break, not sure yet, I'm not a numbers expert.
Revenue per suite at $700/mo. is $88,200. Or $1,058,400 per year.
So I think I can spend about $12M to build the building to get just an OK cap rate, and at about $400 sq. ft. for materials and labour I think that's where I'd be. $95,000/unit. It should not cost that much.
I'd also be interested in an amendment to the residential tenancy act that would permit me to either A) collect a separate maintenance fee monthly from tenants ($50 or so), or B) have them volunteer some maintenance duties each month, like 3 hours of work. So now I have 378 hours a month of labour for common area cleaning, security, painting etc. I have a warm body for 12 hours each day, and I encourage more carefor the collective home. Here's the extra kicker, the tenant also gets $25 back each month, to take with them when they vacate. Ya, it's only $300/yr., but it's there as a thank-you at the end of tenancy, for taking care of the place. They can earn even more money (up to $500) by painting and cleaning VERY THOROUGHLY as they leave. A board will determine the amount of reward based on real examples in the building. A video will show you what is expected.
Edited by VicHockeyFan, 11 May 2018 - 10:51 AM.