There are a number of ways to profit in Winnipeg‘s ‘slow and steady’ real estate market. One is to buy and flip houses, and another is buying rental properties. In a slower market, this second method works well for those who are willing to take a longer position in their portfolio. Not quick money, but steady income and an eventual windfall when you sell 5-10 yrs. down the road.
Buying Rental Properties: The long view
The idea is that initially, the investor is able to collect enough money to cover his expenses. Hopefully with a small profit at the end of each year. As the value of the home or condo increases, and rental rates increase along with it, the return improves over time. Then, a number of years down the road, the home should have increased by 15-25% in value. If the owner decides to sell, he will realize a nice profit at that time.
Lets take a look at some ways to calculate expenses of an investment condo, for example
The return is approx. 113% on their monthly investment of $1,100. (not counting the potential sudden expenses just mentioned above)
So how about buying a house and using it as a rental property:
A client of mine owns a similar home and collects $1,500 per month in rent, plus the tenant pays for their own utilities. Now we are looking at approx. $500 per month profit, or a return of approx. 150% on their $980 expense.
Rental Properties that are not pretty
If you can see past the rougher neighbourhoods, and are willing to settle for a ‘not-so-pretty’ house, your bank account might thank you for it! Here are some actual numbers for a property coming to market soon:
For the investor, these numbers are very encouraging. Basically it amounts to 214% return on their low monthly investment. Low outlay up front, and a great return in monthly rental income. These lower-priced homes are excellent potential rental properties.
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Bo Kauffmann is a residential real estate agent with over 18 yrs experience in helping buyers and sellers achieve their goals. Inducted into the REMAX Hall of Fame in 2010 and receiving the REMAX Lifetime Achievement Award in 2019, Bo has sold over 500 houses and condos in the Greater Winnipeg market. He is an accredited buyer representative (A.B.R.) and a Luxury Home Marketing Specialist. Bo provides exceptional service to First-Time Home-Buyers, Seniors looking to downsize and Home Sellers of all ages. He can be reached easily By E-Mail or call/text him Call/Text Here 
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