Rental Property Investor 路 Halifax, NS 路 Member since 2020 路 40 posts 路 46 votes
The purpose of this post is to create a localized source of knowledge to provide solutions to the issues and challenges faced when investing in Nova Scotia
One such problem of mine is finding affordable single family homes in Halifax to flip. To help with this issue, my business partner and I have created a team of bird dogs to canvass neighborhoods in the HRM. We then do a direct mail campaign to ask the homeowners if they are interested in selling their house - private sale. This technique has been successful thus far.
Lender 路 Nova Scotia 路 Member since 2021 路 24 posts 路 13 votes
5y
I know some are involved in networking groups but would anyone be interested in doing a monthly zoom call?
We could take turns presenting information, have a time set aside for tactical discussions involving our active projects.
Potentially invite guest speakers, I know some private lenders who would do a presentations, maybe a lawyer or 2, insurance agents and real estate agent who would all be willing to share their expertise.
A final benefit is being accountable to peers is often a motivator.
Lender 路 Nova Scotia 路 Member since 2021 路 24 posts 路 13 votes
5y
I know some are involved in networking groups but would anyone be interested in doing a monthly zoom call?
We could take turns presenting information, have a time set aside for tactical discussions involving our active projects.
Potentially invite guest speakers, I know some private lenders who would do a presentations, maybe a lawyer or 2, insurance agents and real estate agent who would all be willing to share their expertise.
A final benefit is being accountable to peers is often a motivator.
@Eri Bastos not a bad idea at all. Great cash flow opportunity, low maintenance cost, easier to rent, there are a lot of positives. I think why you don't see a lot of information on it is because most investors are focused on just that, investing. Construction has a lot of moving parts, and there's a lot more to know/learn. We are doing new construction rentals right now in Truro. Let me know of any questions and I'll be happy to help any way I can.
@Eri Bastos@Derek Cavanaugh I agree with Derek on HRM permitting. It is months long process right now. Even just to get a quick question answered can be up to 3 days wait for the call back. Derek would defiantly be the guy to talk to about funding that sort of investment.
Lender 路 Nova Scotia 路 Member since 2021 路 24 posts 路 13 votes
5y
@Eri Bastos
Some things to keep in mind if you are going to move forward on this.
4 units and under qualify for residential mortgage rates if it's a personally owned property. Over 4 you will get bumped to commercial lending. If you plan on using a company name for ownership it will also be commercial
Construction mortgages with draws are not as accessible as turnkey product but you will have options.
Some builders will carry the build finance but that will generally increase the price.
If you require a lot of funding it would be best to establish market values for rent prior to applying. As a general rule of thumb banks like to see 1.25 income to expense ratio on the project.
Personal income and debt servicing ability will influence the mortgage especially during the construction stage.
New to Real Estate 路 Member since 2021 路 5 posts 路 2 votes
5y
Thanks @Derek Cavanaugh@Joshua McEvoy. This is good information, though I don't understand all of it yet. I need to educate myself a little more.
Some background information: I own my home in Halifax, but I am currently living in Ontario, so I have it rented and a property manager looking after it. I touched based with them asking for advice what kind of houses are mostly sought after and what features people would be willing to pay a premium for, so I could have a little higher rent.
They may be off, but I was told smaller units for young families or people downsizing, open concept and garages are winners. Rents would be anywhere from 1400~1800.
The next thing I started doing was researching and reaching out to builders. My own house is a pre-fab (Kent Homes), so I started with modular home builders. Sent a bunch of emails, but to no one's surprise people in Nova Scotia are mediocre when it comes to replying email, so yesterday I left voice mails with a bunch of them. Hope to hear back during the coming week.
Your information that permits are hard to get is a little disheartening, as I can see this as an extra challenge with me being so far away, but I will keep poking around a bit more.
I have another question if you don't mind, please. I read somewhere that I need at least 20% down for mortgages on income properties. Is that really the case? I am not planning to use a company, just my own name.
Hi! I'm also based in Ontario with a cottage being rented out in Blue Rocks. We originally purchased as a family cottage but currently have it rented and we're working with a property manager. We are interested in more properties in NS and while I really like the South Shore area, I'm curious about other areas more specifically the Eastern Shore and the Northern shore. I know that the eastern side is much less populated and get the feeling it's becoming more of a vacation area. Is that right? What is the potential for full time renters out that way? And the North Shore I can't quite put my finger on. What is the vibe out there?
I'm curious if anyone knows of any property managers / management companies in those areas that might have some more feedback and who might be able to be my eyes on the ground for a couple properties I am interested in.
Can't wait to be able to get back there, feeling frustrated and locked up in Ontario!!!
New to Real Estate 路 Member since 2021 路 5 posts 路 2 votes
5y
Hey people,
How would one who is far away would go about checking a property to check if it has potential for a BRRRR?
I see something in the same area where I have my house that is priced really cheap, so I am both curious and cautious. Anyone local in Halifax interested in doing some research together?
I would reach out to your property manager. They should be able to steer you in the right direction when it comes to doing a BRRRR. I have done many of these projects from a distance and your boots on the ground property manager is the one who can go view the property for you and if they are good at what they do, they should be able to give you a idea of what you can get for rents, ballpark construction costs and even help determine a potential value of the property after you are done. I myself like to hire property managers that have a full time construction crew to make this process much easier. If you want to PM me, I would be happy to share my experiences with this and how I go about doing BRRRRS from a distance.
Lender 路 Nova Scotia 路 Member since 2021 路 24 posts 路 13 votes
5y
Hi all I am thinking of doing a networking zoom meeting. I have lined up a private lender and a real estate agent to present some information on the current Nova Scotia market place.
If anyone is interested you can message me here and I'll attempt set one up.
Let me know if this is interesting to you and suggestions on other areas presenters could be from.
We would be interested in joining a networking Zoom meeting. We are located in BC and are still working towards being able to relocate extra-provincially with our current employment but are interested in connecting with others investing in the Nova Scotia market.