Rental Property in Eastern Passage, Nova Scotia

[Theoren Goosney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $385,000
Cash invested: $85,000

Not in Denver, CO! This house is in Eastern Passage, Nova Scotia, Canada. It is a 3 bedroom, 1.5 bath. This was purchased as my first rental, using some of the funds from my fix & flip in Ontario. Pretty much everything in the house is original, but in relatively good shape, so it didn't need too much work to get it ready for tenants. Myself and three others performed all of the necessary renovations over a weekend to get it ready. Given the insanely hot rental market in the area, we had no trouble finding tenants immediately. I had to pay 20% on purchase since I still live in Ontario, but I certainly didnt mind it, as I was able to put a lot of the cash to work that I made from my flip rather than having it sit in my bank account. I also expect that this market is going to see a lot of appreciation over the coming years as prices here are still relatively low compared to other major cities in Canada, and I have no intention of selling for at least 10 years. So even though I had to put a lot of cash into the unit up-front at purchase and for immediate renovations, I believe it is a great long term investment that is giving me good monthly cash flow from only one weekend worth of work. It is currently being rented for $1900, and we could already get at least $2100 once the tenants lease is up, rents there are just going crazy.

What made you interested in investing in this type of deal?

I want to start collecting rental properties in the area, and going about it using BRRRR method. Fortunately for this property, I didnt have to actually have to refinance or perform too much work to get it ready for tenants.

How did you find this deal and how did you negotiate it?

Found on the MLS

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

It only needed small renovations to get it tenant ready, like some flooring, paint, baseboards. If the tenants move out, I will definitely be doing more renovations to add some more value into it.

What was the outcome?

Rented immediately, and making good monthly cash flow. Very happy I made the purcahse

Lessons learned? Challenges?

Dealing with tenants & screening, immediate renovations vs. renovations which can be delayed

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Andrew Perkins from Keller Williams realty. He also helped me purchase my second property that I recently purchased. I would recommend him to anyone looking for real estate in the area. He is an investor himself so he knows what to look for in properties that will make them good investments