Net Rental Income: $600 per month

So, what was the net result of all this work putting in a rental suite? We took on a bigger mortgage, have had to up our house insurance and will be paying more for hydroelectic. But we get to collect monthly rent cheques. But we have to pay tax on that income. But wait, there are tax deductions we'll get too...

So where does that leave us? By my calculation we're clearing about $600 per month. Here's my breakdown:

Monthly Cost                    Pre-Suite          Post-Suite

Mortgage + Prop Tax       $1768              $2332
House Insurance               $86                  $103
Van Payment                    $338                $0
Hydro (electricity)             $118                $218 (est)
Water                               $30                  $42 (est)
    - Rental Income (net -   $0                    $959
    accounts for income

    tax and deductions)

Total                                $2337             $1736

Net Profit: $601

Now, out of this monthly profit of $600 will have to come any upkeep/repairs to the suite and any months that the unit sits vacant. In our market, there is a general vacancy rate of 1.5%, which means we can expect an average loss of $200 per year due to vacancy, or about $17 per month. Since the suite is brand new, I think it's reasonable that our repair costs will be fairly low in the short term.

I think we didn't do too badly!