All Forum Posts by: Adam Krawec

@Melissa Vass Scott St. Catharines is not becoming easy as well, we are seeing the Toronto market head down to Niagara in large numbers. @Mehdi Motevalibashi We are getting strong considerations down to Welland from Toronto residence, Brampton market especially has bought up most of our new builds.

We do have homes under $500k, but they are typically in competition if the neighbourhood is worth a damn, and rental rates are hovering around $2000-$2400, depending on the homes offerings.

Homes are sold "as is", but "as is" can be broad, if you are buying privately, get a good real estate lawyer to guide you through.

I am also a realtor myself, and also a bit biased towards private sales where no prior relationship exists with the seller, tread very carefully. Owners are selling for a reason, and you will never get a truthful reason out of them, why sell a perfectly good home for a discount afterall? 

These are just a few things to be cautious of:

- Proper contract signed, and goes to a lawyer
- Deposit goes to a lawyer
- Sellers disclosing defects with the home
- Do your due diligence, make sure the home is not above marketprice
- Make sure you are dealing with the home owner, not a tenant or airbnb guest, anyone can sign a contract! This opens you up to fraud

Last week I spoke to a "buyer" where the seller refused to close the home on closing day, he didn't have experience in buying a home and ended up not getting the house. Due to his lack of experience, he didn't have a signed contract or a lawyer to back him up.

Hey Jadon, 

Welcome to the forums! Niagara is a hot market right now, it's not the best conditions for buying single-family without overpaying (that's another issue on its own). My weeks have been spent in multiple-offers situations, personal residence are often purchased on emotions, not exactly profit and ... common sense ;) 

The deals are out there, but MLS is not the way right now, unless you have experience in renos, and have the ability to pursue a gut project that most homeowners are afraid of. Try Kijiji and Facebook Marketplace for FSBO's. Also, try driving around neighbourhoods you would like to buy in looking for FSBO's signs.

Can you elaborate on what you mean by aggresive?

@Alex Kovalenko go to the city website you want to find zoning for, and look up zoning, usually under the planning department.

Or type " zoning" into Google ie. "Niagara Falls Zoning"

No one city makes it easy to find in my experience.

That is mostly correct, you have to be careful with zoning restrictions. Legally you can't just make any home a duplex without R2 designation, and then you need to follow proper guidlines to become a duplex. 

However, there are a lot of homes out there used as multi-unit without city approval. While you can buy homes used in this way, you need to be aware if could affect getting building insurance or the city can shut you down and your back to a single family home. 

Let me know if this link doesn't work, I can shoot over to you in an email. As you can imagine units at the lower end of the spectrum, regardless of shape sell fast.

These sold in the last 6 months Sold multi-unit in Niagara

I'm from Niagara, doesn't seem to be many active members from the Niagara area.

@Alex Kovalenko Chris has some great points, you should utilize your leverage position, the security of a low monthly payment is comforing, but a properly managed multi-family would give you a bit more control to increase value through rents, etc. You can pick up a multi for about $150k-200k a unit in Niagara, most could use some small updating though. Current minimum rents on a 1-bd are $1,100/month, and for a 2-bd $1,400/month

I'll try my best to set the scenario.

- You have a LOC for $200,000 @ 2.95%

- Personal funds of $50,000 cash 

-average local purchase price of a residential home is $450 000

How would you allocate your funds to maximize leverage? And why? Assuming a 20% down payment and cosmetic updating ie. Floors, paint, cabinets, counters.

Goal is to attain multiple properties over time.

If it's inside Carlton Park, it may not have R2 zoning to do the conversion. There is zoning just outside Carlton Park for this. If you are in Carlton Park, and found a home for $415k, that's a steal of a deal, you would probably be better served to just flip the property. Homes do go for $600's in the crescents and around that.

Check page 228 for zoning

https://www.stcatharines.ca/en/buildin/resources/Comprehensive-Zoning-By-law-No.-2013-283.pdf