Just starting out in real estate investing (21 years old, just out of college, no student debt, starting first full time teaching job in Canada in January). My brother and I are looking to partner in our first property. I found a local building that has 4 units with a combination of 6 bed and 3 baths, do not know a lot about the property other than its a conditional use rooming house. After factoring all expenses it cash flows around $1000. Not sure if this is something I want to get into for my first property, I have heard stories about rooming houses having tough tenants/evictions. Its within budget $145K with a 20% downpayment, and good cashflow. Anyone have good/bad experiences with rooming houses?
Hey @Brady Moxham - One thing to note with rooming houses is that you'll have limited financing options. This isn't the type of property that is a straight forward mortgage with a bank (may need to be done through small business lending commercial type loan).
In terms of management of tenants, you'll likely have several long-term tenants paying under market rent, but that's something one could view as an opportunity vs a problem. Just depends what you're looking for.
Thanks @Jacob Perez for the reply! I had not thought of that on the financing side. Might not the best option for my first property. I do like the idea of big cashflow. In your opinion do you think first properties should be more simple SFH? Or would it not be much more difficult to get into a duplex to start? Thanks!