#201, Cloudworks two (5001 forrest Drive)

Clean.  Cashflows.  Professional management.  

A great rental unit with upside.

Price:    214,900

Size: 803 square feet

This clean 2-bedroom unit has a one-year lease in place with good tenants as of June 1st, 2016.  With 24-hour professional property management in place, this condominium unit is a turn-key investment property.

Monthly Cash Flow:  $285 per month.

Expected IRR (Internal Rate of Return):  20.0% per annum over 5-years.

How Did We Get These Numbers & What Do They Mean:

The expected IRR is the annualized return on the cash invested over a set period of time.  This return takes transaction costs and property value growth into account.

What are the details of the calculations?

Condo Fees: $645.98 per month ($457.23 operating plus $218.75 reserve fund)

Per square foot, the condo fees are very competitive. 

Property Taxes: $1,090.04 per year (est.)

Utilities:  Heat, water, garbage, hot water, common area cleaning & maintenance covered by condo fees.  Electricity and internet/cable covered by tenant.

Renovations:

  • Freshly painted throughout entire unit
  • Energy efficient LED lights
  • New washer & dryer

 

If this is such a good deal, why is CloudWorks selling it?

Good question. It boils down to differing financing rules between corporations and personal holdings. Corporations are typically required to make higher down payments (30%+) over shorter amortization terms (10 to 15 years) while paying higher interest rates. To top it off, corporations pay much higher income taxes on real estate rental income (in the 50% range).

Viewings and inquiries:

Contact Rob at (867)-445-3497 or rob@cloudworks.ws