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Carmen LombardiGuelph Property

Chapter 04

Analyze Every Property Three Ways

6 min read

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Conservative, expected and optimistic scenarios, plus the acquisition and monthly operating worksheets to run on every serious Guelph property.

A single estimate creates false confidence. Use conservative, expected and optimistic scenarios for every property. Your decision should still be understandable when the outcome is not ideal.

Model each assumption three ways

  • Monthly rent
  • Vacancy allowance
  • Monthly repairs
  • Capital reserve
  • Mortgage payment
  • Property management
  • Monthly cash flow
  • Cash required

Purchase and acquisition worksheet

  • · Purchase price
  • · Down payment
  • · Land transfer tax
  • · Legal and registration costs
  • · Inspection and due diligence
  • · Appraisal and lender costs
  • · Immediate repairs
  • · Renovation or conversion
  • · Initial reserve fund
  • · Total cash required

Monthly operating worksheet

  • · Gross rent, plus parking, storage and laundry income
  • · Less vacancy allowance = effective income
  • · Property tax, insurance, utilities
  • · Repairs and maintenance, capital reserve
  • · Management, condo fees, landscaping and snow
  • · Other operating costs, mortgage payment
  • · Total outflow and estimated cash flow

Run these numbers with the Guelph investment property calculator on this site before you write an offer.

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This guide is educational and reviewed periodically. It is not legal, financial, tax, mortgage, insurance or inspection advice.

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