Saving for their Kids’ University Education Delayed Homeownership

Tony and Yolanda are hard-working parents with two older children, a 21 year old son and a 17 year old daughter. Both kids are in University. The youngest is starting her undergraduate studies at York University. The oldest works part-time and is contributing to the household. The family has been cohabitating in a rental with extended family, to save on rent to put their kids through university. Now that their youngest is in university and their oldest is further along in his studies and is more independent, Tony and Yolanda are eager to get their foot in the door of the real estate market to start building their own nest egg. The plan is to start small and move into a GTA condo with their youngest, while their oldest lives with extended family. The couple has decent credit and have saved up $15,000 to rent-to-own, which will give them time to build up a bigger down payment.

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Employment
The couple has a total household income of $104,100. Tony has very stable employment. He has worked with the City of Toronto as a Heavy Duty Cleaner since 1999. He earns $54,000 annually. Yolanda is an Environmental Services Attendant with Markham-Stouffville Hospital. She has been in this position since 2019 and earns $50,100. Their eldest has started working in his field part-time, as a Clinical Extern at Markham-Stouffville Hospital. He earns approximately $20,000 a year in his current role and is helping his parent out with $500 a month towards condo fees.

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Credit
The couple have good credit and a good payment history in terms of their bills and credit cards. Tony has a car payment of $24,000 that will be paid down over the term while Yolanda has a smaller car payment and a little credit card debt. In addition to paying down a little debt, they will also be building up a bigger down payment to be mortgage-ready by 2024. They will be monitored by the Clover Properties-approved mortgage team to ensure their credit and mortgage qualification is on track.

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Property
The couple found a great house in Thornill, Ontario. This 1-bedroom, 1-bathroom property suits their needs as they will occupy the property with their youngest. This property is a great starter home for the couple who need a little more space than their current rental (with family). Convenience is everywhere – grocery, shopping and retail just outside the door, public transit while being 10 minutes from the 407 and 404. This is the perfect location as it allow Yolly to be close to work.

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Next Steps
If you can qualify for a $376,000 mortgage (based on a 20% down payment), and would like to earn about $1,354+ in monthly cashflow to help Tony and Yolly Rent to Own, please call or text Rachel at 416-450-1940.

Investment Property Highlights

  • Your investment is $99,400
  • Estimated annual return on investment is 30% (based on a mortgage rate of 2.50 and 30 yr amortization –approximated)
  • Your estimated NET profit $89,456
  • Your NET monthly cash flow is approx. $1,354+ a month
  • Tenant-buyers have $15,000 for the down payment
  • Tenant-buyers has household income of $104,100

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About the Property

  • Purchase price is $470,000 (offer presentation is tomorrow Sept 14, 2021)
  • Target closing date is 30 days
  • Tenant-buyer agrees to pay $3,100 monthly (they will pay condo fees separate)
  • Monthly carrying costs $1,900 (or less)
  • Tenant-buyer will buy this house in 2024 for $544,433

Next Steps

  • Yes, I want to proceed with this opportunity
  • Meet realtor and sign conditional offer
  • Confirm your financing
  • Review inspection report
  • Review contracts
  • Go firm on the deal
  • Tenant-buyer’s $15,000 down will be used as the deposit on the property with accepted offer
Rachel and Neil Oliver
Rachel and Neil OliverCo-Founders, Managing Partners
Need a Mortgage Partner for Your Next RTO?
If you’re craving cashflow but have only cash to invest, let’s explore a Joint Venture.
Contact rachel@rethinkrentals.com

Contact me for more information or if you have any questions: rachel@rethinkrentals.com