Sell & Lease Real Estate Properties, Homes/Houses in Alberta
Find commercial or residential real estate properties, condos, houses, investment properties for sale in Alberta. Contact RealtyCorp - real estate professionals for selling investment properties, house in Stony Plain, Spruce Grove, Beaumont, Fort Saskatchewan, Edmonton, St. Albert, Devon, Leduc & Sherwood Park, Alberta.
Lease Option Strategy
Lease option strategy (aka ‘Rent to Own;) is similar to a buy and hold investment – but with some key differences.
Consistent Returns: Annual net returns on investment (ROI) is generally 29-32% including property management costs and yearly Cash-on-Cash returns of 15-18%.
Duration: Time frame for the investment is 1-5 years with 3 years on average.
Clear Exit Strategy: Since the property has potentially been pre-sold by way of the Option Agreement, you already know your exit date and selling price.
High Monthly Cashflow: Net Cashflows are higher than a comparable buy and hold strategy.
Larger Deposit Fees: The deposit fee paid to you at closing by the tenant buyer is greater than the traditional security deposit of one months rent (the usual maximum allowable under the Alberta Tenancies Act).
Reduced Expenses: The tenant is responsible for the following costs;
- Property Inspection During Due Diligence Phase
- Property Taxes
- All Maintenance and Repair Costs
- Property Improvement Costs
RealtyCorp has a stringent application process that prospective tenant buyers must complete. Only those that are approved are then assigned to our investor clients and only then does the buying process begins.
Please see the following video interview with Realty Corp Inc. Director Murray Zelinski for more insights on Edmonton investment strategies (5mins long):