Any helpful advice?

Question

I am 19 years old have 40k save and am interested in real estate in Edmonton Alberta, specifically the BRRRR strategy. I am trying to familiarize myself with the BRRRR calculator and math involved with analyzing a deal, but am running into problems because I do not know how much a property is worth today, or how much Reno’s will cost, or what the ARV will be. Any advice or resources?

Reagan Wilson · Answer

@Jonah Simmons

I do not have a specific area at the moment and I’ve been working since I was 15. I am currently a 2nd year Refrigeration/HVAC Apprentice. And I was initially looking to just house hack but I found a full duplex converted into a 4plex for $500,000. Needs work done but got me thinking about buying duplex’s if I can get the whole building with multiple spaces

Reagan Wilson · Answer

@Trevor Aydelott

Edmonton seems to be decently priced across the board for anything decent your looking at at least 200k most of the time varies a little bit North to South side . There are cheaper options out of the city but I want my first deal to be in the city before I start investing at a distance and I also have no clue about other markets.

Reagan Wilson · Answer

@Chris Schmidt

I appreciate it definitely something to look into but if I can avoid that area I am going to just because it is not very desirable

Paul Kochendorfer · Answer

@Reagan Wilson as Doug Crenshaw mentioned, get in touch with an investor friendly Realtor. I use Mogul Realty Group in Edmonton and they often have great advice and insight in these kinds of things and great connections to help build your team. Talk to Adrian and tell him I sent you :) Good luck!

Chris Schmidt · Answer

@Reagan Wilson I'm closing on a condo this month in Edmonton but this wasn't my original intent. I am going the condo route due to some personal reasons that aren't worth discussing here. The real reason I'm writing is to let you know if you are going to be looking in that area just North of downtown watch the foundations. Anything in that $200k range is basically about to fall of it's foundation. The frost heave we have here is just as brutal on foundations as it is on our roads. I went through so many of them looking for a BRRR. I was looking around there about this time last year. Just a friendly warning.

Doug Crenshaw · Answer

Hello Reagan... Well I have to say you are NOT alone! There are many new investors out there with the same type of questions!

I have been working in the investment world for almost 20 years now... It is always great to see new people joining the ranks! Hang in there and you can make that $40K seem like a drop in the bucket later!

The BEST and easiest way to get the ARV and MAO numbers is through an Investor Friendly Realtor! I not only say that because I am one, but also because the field that we play on is more evenly matched. A lot of investors that start oiut try using Zillow/Trulia and other such sites to get the ARV & MAO. The biggest key to Real Estate Investing is to Buy it Right... and Sell it Right... If you don't have the ARV right or the MAO right you will fail...

To get the right numbers I would suggest getting with an "Investor Friendly" Realtor that can get you the correct information to be able to buy a property. Ask them how they evaluate a property, what forms do they use, how long have they been working with investors, and what investments do they have? Just to start... If they do not answer these very simple questions then move on. I am not familiar with anything above the Florida border so I cannot assist you... other than on general questions about RE Investing. If you have any questions I will be happy to answer... just give me the specifics and I will be happy to respond!

Good luck out there and stay safe with all the Coronavirus thing going on!

Thanks,

Reagan Wilson · Answer

@Jonah Simmons. Yes it is north side and around that area I don’t have the exact address probably the same one. I am not planning on buying that property it just got me thinking about duplex triplex four plex deals.  And I did have that concern if I bought in that area what kind of renters I would be getting.   I was raised with my parents telling me you have to have 20% down and pay off your mortgage in 10 years to avoid interest. But it seems that every investor wants to go for that 30 year mortgage and put as little down as possible.

Jonah Simmons · Answer

@Reagan Wilson

You should have no problem with financing on that. You'll only need 5% if you live there and you'd have some cash for a few renos. Where is the duplex located? I'm guessing north side? Sounds pretty cheap for a 4 plex. Some areas will just give you problems with renters. It's not 95st is it?

Trevor Aydelott · Answer

@Reagan Wilson

Doesn't hurt that your profession goes along with real estate.

And that is on you whether your place is expensive or not. Whether you want to find somewhere cheaper or if that is the cheap area. I'm not familiar with your place.

Trevor Aydelott · Answer

Honestly I would hire a good property manager @Reagan Wilson

If your goal is to hold these properties long term and you want to do it kind of fast.