About the tenant-buyers:

Rohit and Navdeep are a young, married couple with no kids and want to rent-to-own a new construction home in West Edmonton, Alberta. Prior to meeting, Navdeep bought a property in BC for her family members. Although Rohit and Navdeep have good credit, having that mortgage on her credit is currently impeding Navdeep’s ability to qualify for a purchase with Rohit. In about 18 months, the mortgage on Navdeep’s BC property will be up for renewal, so she will sell it. Until then, Navdeep’s brother and his family will rent that house, which more than covers the mortgage payment. In the meantime, Navdeep and Rohit are eager to rent-to-own because they found a home they love. They have saved $15,000 towards their down payment and will need 4 years to build up a bigger down payment to become mortgage-ready.

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Income

The couple has a total household income of $96,135 . Rohit works for Anderson Last Mile as a Delivery Associate.  He has been in this position since early 2023 and primarily works delivering packages for Amazon.  He earns $43,000.  Navdeep works for the City of Edmonton, for the Edmonton Police Service.  She is a Data Clerk and earns $53,135 annually.  She has been in this role since 2022.

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Credit

Navdeep has decent credit. Her score is 809.  Rohit needs time to pay back a few of collections that he incurred as part of his divorce to his first-wife in 2020.  She stopped paying for bills they had together and that put them both into collections.  Rohit knows he has to pay the collections and has a plan to do so by December of 2023 in order to improve his credit.  On top of this,  selling the property in BC within a year or so will allow their ratios to improve while increasing their down payment in preparation for the end of the rent to own term.   They will be working with a Clover Properties-approved mortgage broker to become mortgage-ready.

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Property

Rohit and Navdeep fell in love with a detached new build located in the desirable Westside of Edmonton called Edgemont. This is a family-friendly community complete with ravines, ponds and walking trails. West end is full of amazing amenities such as West Edmonton Mall, RiverCree Resort and Casino, restaurants, schools and parks. The house has 3-bedrooms and 2.5-bathrooms, upstairs laundry plus a detached garage that will be ready upon sale of the property. This home features a modern exterior is beautifully finished with showhome level upgrades, including: stainless steel appliances, an electric fireplace, ceramic upstairs tile and an upgraded backsplash.

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Next Steps

If you can qualify for a $336,000 mortgage and want to enjoy $827 in cashflow each month without the hassle of paying land transfer tax, please click the button below to indicate your interest in helping Rohit and Navdeep Rent-to-Own their first home.

Deal Summary:

Term: 4 years

Purchase Price:  $420,000

Estimated Investment Required: $85,700

Estimate ROI: 25% (based on 6.24% and a 4-year deal)

Estimate Returns: $85,487

TB Down Payment: $15,000

Numbers Summary:

Monthly Payment: $3,257

Condo Fee: $0 (tenants will pay this)

Monthly Cash Flow: $827

Future Purchase Price: $504,597 (after four-years)