Newmarket Real Estate Realtor for Busy People™

Friday Harbour For Investors


Friday Harbour for Investors

CAUTION: These data are for illustrative purposes only. You must verify for your specific needs. 

SAMPLE : Shows 5-year results.  I work with my clients to customize their projections. Call me, Dennis Paradis, Realtor, about this at 416-399-5832

See My YouTube Video

See Reports .

See Reports for a 1-Bed on a 6-month Rental Plan.

2Bed, 2Wash , 800SF  Priced at $650K - 6 Month Rental Plan

 

Year 1

Year 2

Year 3

Year 4

Year 5

Rental Income (based on 6 months of rental)  For a 1-Bed 6-month rental plan - See reports

18,800

19,552

20,334

21,147

21993

Less Vacancy/Bad Debt

3,760

3,910

4,067

4,229

4,399

Gross Operating Income

15,040

15,642

16,267

16,918

17,595

Expenses

         

Property Taxes
(0.50% of Purchase Price)

3252

3317

3383

3451

3520

Condo Fees - $.60 per SF

5,760

5,875

5,993

6,113

6,235

Resort Association Fees

1,200

1,224

1,248

1,273

1,299

Lake Club Fee (suspended for rental period) - 6 mths

846

863

880

898

916

Utilities (metered and paid by tenant during tenancy)

750

765

780

796

812

Insurance 480 490 499 509 520

Internet & Sec Monitor - incl in Codo Fees

 

 

 

 

 

Property Management Fee (not used)

 

 

 

 

 

Repairs, Supplies

1,200

1,224

1,248

1,273

1,299

Total Expenses

13,488

12,534

12,784

13,040

13,301

           

Net Operating Income (NOI)

1552

3108

3,483

3,878

4,294

less Mortgage Payments

30% Down, 2.00% , 25 Years

23,142

23,142

23,142

23,142

23,142

Cash Flow (CF) - This Year

(21,590)

(20,035)

(19,660)

(19,265)

(18,849)

Cash Flow (CF) - Accumulated

(21,590) (41,625) (61,285) (80,550) (99,399)

Annual Appreciation 10%

65,000

71,500

78,650

86,515

95,167

CF (this Yr) + Appreciation

43,410

51,465

58,990

67,250

76,318

Estimated Market Value - 10%/yr

715,000

786,500

865,150

951,665

1,046,832

 

Mortgage Paydown (MPD)

14,172

14,458

14,750

15,047

15,351

 

Accumulated Mortgage Paydown

14,172 28,630 43,380 58,427 73,778

Net Proceeds if Sold (Mkt Appreciation + MPD + Cash Flow (todate) before Selling Costs  at about 5.25% of Market Value ffor extit year

57,581

65,923

73,740

82,298

891,669

Plus Get Downpayment Back 195,000 195,000 195,000 195,000 195,000

Return to Friday Harbour Made Easy page 

What Does All This Data Suggest?

  • You could enjoy the use of  a 2-Bed condo at Friday Harbour for 6-Months per year for 5 years and pay $21,000 - 24,000 per year in Cash Out per year or about $120,000 over 5 years. Assumes you use in Peak season, eg;  May-Oct and Rent during rest of Year. 

  • At the end of 5 years, your Mortgage Paydown (MPD) of $74.000 and 10% Market Value Appreciation ($397,000)  totalling $471,000 would pay for this Cash Out and After Selling Expenses of about $55,000 , you would still be ahead over $400,000. If Market Appreciation averaged only 5% per year, you would have a total of $179,000 + MPD of $74,000 for a Total of $250,000 and still be ahead after Selling Expenses of about $46,000 by about $120,000 if you sold in 5 years. 

 

  • Use this data as a guide but remember results are not guaranteed. You must do your own calculations based on your best judgement. Key variables are Market Appreciation and Rental Rates and Vacancies

 

Call Dennis Paradis at 416-399-5832, if you are interested in learning more ...