Knowledge centre
Decide how the property could be held, refinanced or sold if rent falls, expenses rise, financing changes or life interrupts the plan. An exit strategy is a tested set of options, not the assumption that prices will increase.
Only after confirming municipal licensing, principal-residence rules, condo restrictions, insurance, lender acceptance, seasonal demand and a workable long-term-rental fallback. Online nightly rates are not dependable annual income.
Confirm the legal number of units, leases, lawful rents, utilities, meters, fire compliance, insurance, condition and operating expenses. The lender’s treatment can also change by unit count, owner occupancy and documentation.
Verify zoning, building permits, fire and safety requirements, access, parking and actual condition. A listing description or existing tenant does not prove that the suite is lawful or acceptable to an insurer or lender.
A vacant property may offer control over tenant selection and current market rent, while a tenant-occupied property may provide immediate income. Existing tenancy terms, lawful rent, deposits, payment history and possession plans can outweigh the apparent convenience.
Review the declaration, bylaws, rules, status certificate, reserve fund, fees, insurance, special assessments and rental restrictions. Expected rent does not protect you from a building rule or future cost that changes the investment.
Cap rate measures property income before mortgage financing. Your cash flow also depends on down payment, interest rate, amortization, payment structure and lender fees, so the same property can produce different results for two buyers.
Start with supportable rent and subtract mortgage payments, taxes, insurance, condo fees, maintenance, vacancy, management, utilities paid by the owner and a reserve for large repairs. A property can show positive cash flow only because important costs were omitted.
Call Rajiv and your lawyer immediately, keep funds and documents available, and do not make promises directly to the other side. The team must identify the exact missing item, whether same-day completion remains possible and whether a documented extension is needed.
Treat the PDI, occupancy and title closing as separate events. Record incomplete or damaged items at the PDI, have the lawyer review the builder agreement and adjustments, and keep mortgage approval current through the actual funding date.