Hi there, I am new to real estate investing. We currently own a property where we rent out the basement suite and live upstairs. This is the first step we took towards achieving our real estate investment dreams! Looking for general advice from others investing in Calgary and surrounding areas.
Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
6y
Congrats on taking that first step! We're investing in Edmonton and have found that in order to cash flow well, the property has to have at least 2 suites, so either a basement-suited house or a house with a garage suite, or bigger. I would expect it to be similar in Calgary. Keep adding those types of properties, one property at a time, and you'll do well.
Toronto, ON · Member since 2020 · 11 posts · 1 vote
6y
Hey, what type of financing did you use to fund the property? I was looking to do the same approach in the Toronto area. Live up top and rent bottom or even both
Nice! I am starting to do that in Calgary as well (specifically Airdrie for now)!
Airdrie has higher cash flow but appreciation won't be as good as Calgary for sure...hoping to diversify the areas one day as well!
What kind of properties do you have in Airdrie? I'm surprised to hear cash flow is better?
SFH, but like you renting, making it a duplex with a basement. The only reason why cash flow is better is because the property is generally cheaper and the rent is about the same.
I mean, it also depends on where you are buying..Calgary is quite volatile with different areas as well.
Nice! I am starting to do that in Calgary as well (specifically Airdrie for now)!
Airdrie has higher cash flow but appreciation won't be as good as Calgary for sure...hoping to diversify the areas one day as well!
What kind of properties do you have in Airdrie? I'm surprised to hear cash flow is better?
SFH, but like you renting, making it a duplex with a basement. The only reason why cash flow is better is because the property is generally cheaper and the rent is about the same.
I mean, it also depends on where you are buying..Calgary is quite volatile with different areas as well.
where about are you?
I'm surprised rents are the same, how are you finding vacancy compared to Calgary?
We have a mortgage on this property. Still trying to figure out what financing options we will use for the next one. How does everyone else fund multiple rental properties?
Hi there, I am new to real estate investing. We currently own a property where we rent out the basement suite and live upstairs. This is the first step we took towards achieving our real estate investment dreams! Looking for general advice from others investing in Calgary and surrounding areas.
Thanks!!
Great house hacking technique!
What else are you looking to do in real estate here in Calgary?
Realtor · Calgary, Alberta · Member since 2018 · 291 posts · 132 votes
6y
@Josee Fortin
You gotta work with a mortgage broker that has experience working with investors, and make sure to lay out your long term strategy up front as it really helps with finding later on, he will make a plan on which lenders to use first, which to use later etc. If you are looking for someone I have one that is absolutely outstanding he is the only member of me "rockstar team" that I have not replaced, I can send you his info if you'd like.
Absolutely need to talk to an experienced investment focused broker. If you start with one or two placed at the wrong lender it can hinder your end game substantially.
Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
6y
Congrats on taking that first step! We're investing in Edmonton and have found that in order to cash flow well, the property has to have at least 2 suites, so either a basement-suited house or a house with a garage suite, or bigger. I would expect it to be similar in Calgary. Keep adding those types of properties, one property at a time, and you'll do well.
You gotta work with a mortgage broker that has experience working with investors, and make sure to lay out your long term strategy up front as it really helps with finding later on, he will make a plan on which lenders to use first, which to use later etc. If you are looking for someone I have one that is absolutely outstanding he is the only member of me "rockstar team" that I have not replaced, I can send you his info if you'd like.
Hey Anthony,
I'd love to chat with your lender too if you don't mind sharing? Thanks
Real Estate Investor · Calgary, Alberta · Member since 2014 · 16 posts · 1 vote
6y
Hi Josee, congrats for starting to do this now! I have done that 5 years ago but now I'm looking to get out lol because I lost my job and I am planning to leave the country to find job elsewhere.
I guess I just share a little bit here hoping other fellow investors can give some suggestions :)
I have been trying to sell my rental property here in Calgary and for the past few
years but the market price keep decreasing where my mortgage owed =
market price, currently almost no equity in there
I've considered/ tried following:
- conventional way using realtor - even though seller's realtor
willing to take less commission, no guarantee that buyer's realtor is
willing to do it as well.
- agreement for sale/ rent to own - fail because tenant buyer defaulted.
- no fee/ low fee realtor brokerage (commfree, 1% realty etc.) - actually they charge more than what it shows in the ad.
- direct marketing through kijiji, facebook, reach out to my real
estate investor friends for direct sale or another rent to own - this is
what I am doing now.
- 1% fee realtor website (bodecanada) - this is pretty new and I start to put my property there
- rent out to tenants - this is what I am doing now
My property is half duplex with illegal walk out basement suite so I
rent out upstairs for $1200 and basement for $700. Tenant pays all
utility. I am blessed with great tenants but I still want to sell at
market price ($335K-ish).
Hoping to get some advice/ suggestions from real estate investor gurus here.
Hi Josee, congrats for starting to do this now! I have done that 5 years ago but now I'm looking to get out lol because I lost my job and I am planning to leave the country to find job elsewhere.
I guess I just share a little bit here hoping other fellow investors can give some suggestions :)
I have been trying to sell my rental property here in Calgary and for the past few
years but the market price keep decreasing where my mortgage owed =
market price, currently almost no equity in there
I've considered/ tried following:
- conventional way using realtor - even though seller's realtor
willing to take less commission, no guarantee that buyer's realtor is
willing to do it as well.
- agreement for sale/ rent to own - fail because tenant buyer defaulted.
- no fee/ low fee realtor brokerage (commfree, 1% realty etc.) - actually they charge more than what it shows in the ad.
- direct marketing through kijiji, facebook, reach out to my real
estate investor friends for direct sale or another rent to own - this is
what I am doing now.
- 1% fee realtor website (bodecanada) - this is pretty new and I start to put my property there
- rent out to tenants - this is what I am doing now
My property is half duplex with illegal walk out basement suite so I
rent out upstairs for $1200 and basement for $700. Tenant pays all
utility. I am blessed with great tenants but I still want to sell at
market price ($335K-ish).
Hoping to get some advice/ suggestions from real estate investor gurus here.
Thank you in advance! :)
Have you thought about just the AFS part without the RTO? Since you're the expert, it'll take some work to explain to a buyer or other investor, but if the property cash flows and numbers work, could be a win-win. Buyer doesn't have to put any money down or qualify for a mortgage. Have you taken Barry McGuire's course?
Have you thought about just the AFS part without the RTO? Since you're the expert, it'll take some work to explain to a buyer or other investor, but if the property cash flows and numbers work, could be a win-win. Buyer doesn't have to put any money down or qualify for a mortgage. Have you taken Barry McGuire's course?
Hi Zorya :)
Yes I did, in fact when I mentioned AFS/ RTO, at that time I did AFS with other investor, then the investor turn it to RTO. Since the tenant buyer couldnt qualify then RTO agreement broke down. And AFS contract stipulated if investor couldnt buy, the property will come back to me. So that's what happen there
No, I never took Barry's course, but I'll look into it. Thank you for the suggestion! :)
Have you thought about just the AFS part without the RTO? Since you're the expert, it'll take some work to explain to a buyer or other investor, but if the property cash flows and numbers work, could be a win-win. Buyer doesn't have to put any money down or qualify for a mortgage. Have you taken Barry McGuire's course?
Hi Zorya :)
Yes I did, in fact when I mentioned AFS/ RTO, at that time I did AFS with other investor, then the investor turn it to RTO. Since the tenant buyer couldnt qualify then RTO agreement broke down. And AFS
contract stipulated if investor couldnt buy, the property will come back to me. So that's what happen there
No, I never took Barry's course, but I'll look into it. Thank you for the suggestion! :)
Does the place cashflow with the financing you have in place? When does your mortgage mature? If it cashflows you‘d think it’d be an easy sell with an afs. Other then people being worried to buy now since prices will likely drop..
Barry’s course is great btw I’m doing the at home Rapid cash program right now which covers afs and some other creative strategies.
Hi Scott, thank you for the suggestion! right now property is breaking even, mortgage payment = rental income, but if investor comes in with 20% downpayment, they will make positive cashflow for sure. Even if property is cashflowing for me, I still want to sell since I plan to move out of country. I'm open to any ideas including AFS, since I just renewed my mortgage this year plus I have a great mortgage rate of prime - 1%.