New to Real Estate · Brampton ON · Member since 2020 · 17 posts · 3 votes
Hi BP community, Happy new year to all of you!
I am a newbie REI from Ontario, Canada. I see a lot of experienced Canadian Real Estate investors in the forum. I would love to learn from your collective experience and would like to know about your biggest Triumphs and mistakes of 2020. What actions are you very proud of and what could you have done better?
I am sure all newbies will benefit from it. Thanks
Rental Property Investor · Toronto · Member since 2018 · 126 posts · 106 votes
5y
My first rental property mortgage was also a 10yr fixed at 5.69%. Back in 2013. I thought it was a good idea at the time to have 10 years of stability and a consistent payment. I learned quickly that was a mistake. Cost me thousands to break that mortgage. Now if I do a brrr, I do a 1 or 2 year fixed as I'm renovating, then when I refinance I switch to a 5 year variable at the lowest rate I can find.
London, Ontario · Member since 2018 · 104 posts · 38 votes
5y
Triumph: reaching my goals of 2020 of acquiring 2 new properties. including a BRRRR and a duplex (converting to triplex)
Biggest Mistake: Buying a place that was on the MLS as a student rental! lenders don't like that, ended up having to put 35% down, which is now killing all my momentum going forward.
@Account Closed, who sold you that!!! as a mortgage broker/agent we make a ton more if we sell a 10 year mortgage. Shows you how the banks want us to sell their mortgages and where they make money
Homeowner · Hinton, WV · Member since 2020 · 13 posts · 3 votes
5y
CIBC. I'll never make that mistake again. I was told by the agent the rate was good and we could refi for free. At the time I thought yes of course I'll hold the property long term but that was an absolute rookie mistake. I'm never going to make that mistake again.
30 year amortization variable rate mortgages all day for this guy.
Rental Property Investor · Toronto · Member since 2018 · 126 posts · 106 votes
5y
Good posts on here.
my triumps. Didnt loose any properties due to covid and almost every tenant paid rent in full.
I was able to be deployed with the military for 6 months and leave my properties with a management company. First step to freedom.
I was able to refinance a property and move the money into Olympia trust to start private lending.
I've helped mentor a few new investors buy their first property and start the legalization process
Mistakes.
I may have over reacted to the thought of losing a property or 2 due to carona. I deferred 3 mortgages as a precaution, but now my mortgages on each are a bit higher.
I never ended up buying any properties this year. I had the intention to, but I think I was just burnt out.
Rental Property Investor · Toronto · Member since 2018 · 126 posts · 106 votes
5y
My first rental property mortgage was also a 10yr fixed at 5.69%. Back in 2013. I thought it was a good idea at the time to have 10 years of stability and a consistent payment. I learned quickly that was a mistake. Cost me thousands to break that mortgage. Now if I do a brrr, I do a 1 or 2 year fixed as I'm renovating, then when I refinance I switch to a 5 year variable at the lowest rate I can find.
Investor · Pickering, ON · Member since 2020 · 46 posts · 14 votes
5y
Triumphs:
- Got one of my tenant out that hasn't paid rent for 7 months during COVID-19.
- Increased the rent in that house after he moved out.
Mistakes:
- Blocked off access to the basement from the main floor because I thought I will be house hacking. This was not appealing to most buyers. Moral of the story: If it's a single-family house, make sure to keep access to the basement from the main floor even if you create another unit in the basement.
- Cheaped out on basement kitchen renovations, which hurt property value. An extra 5-10K investment would have increased the value by 10-20K.
2021 goals: Invest in at least 2 BRRRR deals in Durham, ON.
Rental Property Investor · Toronto · Member since 2018 · 126 posts · 106 votes
5y
Kiril. If you are going to have an apartment in the basement it's better to close off the access to the basement from the upper unit. It make the fire separation process between the 2 units easier and it has to be done in order to legalize the house. In all my house conversions I block the stairs, take out the 3 steps leading to the main floor and replace it with a stackable laundry for the upper unit. Works great.