Click image to see more images of the investment.
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851 Tuscarora Street
Windsor, Ontario
Canada
| 22
| Owned
| $530,000
| | 18% Per Annum | Tuscarora is a great example of how we do business. This is a three-story
walk-up with about half of its units renovated (Pictures not available, as
tenants are in them), and the other half still needing to be renovated.
One of the pictures above shows the work-in-progress nature of this
building.
The location is amazing, barely a kilometer from downtown Windsor but
still in a quiet, residential neighborhood. As noted above, we have
purchased Tuscarora for an astoundingly low $530,000, and while we will be
renovating this building considerably, it's only going to cost us around
$66,000, which is also extremely low. Costs in general are fairly low in
economically depressed Windsor, home of a 15.2% unemployment rate as of
this March.
Why in the world do we own a building here then, a lot of people want to
know?
First of all, the city is going to rebound. Not in the immediate future,
but it will happen. The economy is diversifying, and huge service
industries have been moving into the city, including, but not limited to,
health care, insurance, software, and education. A full-program medical
satellite school from the University of Western Ontario just opened in
Windsor last September, and This city will go up in a little bit, and a
well-managed, nice, livable apartment building can gain from and
facilitate that process. A rising tide lifts all boats, etc.
A final factor is Windsor's high rate of foreign-born immigration. 20% of
Windsor's population is foreign-born, the fourth-highest in Canada. The
flow hasn't really been slowing, which means, as we continuously refrain
here, that more people will be looking for a place to live. Immigrant
populations also tend to be fairly stable, as immigrants from similar
areas understandably cluster together.
Oh, and housing construction, like most of North America, is at a
stand-still in Windsor; there were 18, count 'em, 18 housing starts in the
area of March of 2009. Given the inherently long time-costs of increasing
the housing supply, we think the opportunity here is ample. |
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