Attention investors! London is a a great option if you are looking for investment opportunities. A vacancy rate of 2.1%, several hospitals, and a large student population between Western University and Fanshawe College make London an attractive market for real estate rental investments.
With an average Cap Rate of between 5-8% there are many affordable investments that generate a positive Cash Flow while allowing you to pay down the mortgage and realize the appreciation value.
Call Kristina Bradley today for a list of real estate investment opportunities in London Ontario. 519.872.3578
Real Estate Rental Case Study #1 Prosperity Court
*based on real life example, not including home maintenance and incidental fees incurred
5 bedroom single detached home within walking distance of Fanshawe College.
Purchase price $250,000
Rental Income $28,500
Gross Rent Multiplier (GRM) = 8.77
Expenses
Management Fees 5% of monthly rental income = $1425
Rental Fees = 50% of 1 month’s rent = $1188
Misc Admin Fees = $400
Utilities = $4400
Property Taxes = $3475
Insurance = $800
Net Income: $16,878/
Purchase Price: $250,000
Cap Rate=6.75%