All Forum Posts by: Andrew Cameron

This is the worst!  The worst!  We send letters out to all of our tenants on a regular basis and have a note asking people to call immediately if they hear their toilet running.  We had a tenant that didn't call about their running toilet, we found out she was so deaf she couldn't hear it.  That was a new one.

I don't have any input on the auto shutoff toilet valves, I just wanted to express my frustration too.  Mind you, I'm curious to hear other people's feedback.

@David Calme Oh yes, for my properties when I was first starting out we had no direct management expense on our P&L.  This made the look much better!  However, I would never use someone's P&L that didn't have a management expense to value the building.    I would put in a minimum of 5% management fee, and 5% repairs and maintenance if it is older building and not even concern myself with their actual numbers.

Did you get utility numbers from them?

Congratulations @Laura Engel.  The first step can be the hardest.  Well done for taking the plunge.

I wouldn’t worry about not having their specific expense numbers for Repairs and Maintenance, Or Lawn care and snow removal. You always need to put a plug number or put in your own estimate for these numbers. The previous owner may be doing this work in a way you aren’t capable of or want to do. The previous owner could be giving someone a break on the rent to mow, or have a nephew that shovels for cheap on the weekends, or he does the maintenance work himself and doesn’t account for his own labour, or they aren’t doing the R/M to the standard you would. The only number I would want to have hard and fast before due diligence is the actual rent numbers and it sounds like you have it through the rent roll. What about a live-in super? Had you thought about having one or just go with the PM company?

We have an unbelievable number of easements on a lot of our properties - drainage, sewer, utility, right of ways.  Lots of them.  The only one that was a problem was when the sewer line wasn't actually in the easement - after we shifted the re-routed the sewer line and had to shift the placement of the house slightly we were good and ready to go.

I don't shy away from a piece of land because of some easements.  It's just one more information to review during due diligence.  

Talk to your lawyer or surveyor and they can tell you the exact details on the easement.

Way to stick with it. There must have been so many times you wanted to quit or bail. I always say a successful entrepreneur is just someone who gets up one more time than the other guys. I’m glad to hear you took on learning Construction. How are you making out with your subs now? Are you finding good ones that will show up and will actually work together?

Over the last 8 years I’ve built about 40 4-unit apartment buildings in Canada. I won’t be able to help with costing in your area, but I can offer some tips and pointers. Your per/unit cost for construction will decrease the more units you can build in one building. For example, a duplex will cost less per unit than building 2 houses, and a four plex will cost less per unit than 2 duplexes. You will also have less ongoing maintenance because you’ve reduced the number of roofs, foundations and siding, amongst other items, to maintain. You can also reduce ongoing operating expenses by having more units in one building. For example, you can have one water meter, and only pay one base charge. Those are just my first few thoughts, and My conclusion is to work to maximize the density. I hope this helps everyone.

Yes, they both need to be on the lease and responsible for the rent.

A co-signer is usually someone who takes responsibility for the rent even though they don't live in the apartment.

If the brother who makes more money wasn't going to live in the apartment then he could co-sign for his brother.  This way the brother who makes more money would be responsible for paying the rent if his other brother couldn't pay.  

This is a tough question to answer without looking at the situation in person.  But a few things I wonder:  Do you have a basement is the issue with the flooring in the basement or on the main floor?  How close is the driveway to the foundation?   Does this crack in the pavement really have anything to do with the swelling flooring or is it just a coincidence?

Hi James, Talk to an accountant or someone else about the HST implications of this strategy. I'm concerned that your PM company will have to charge the property owner HST, which the PM won't be able to claim back. Basically there's a good chance you will end of paying 15% to CRA for nothing. Andrew