All Forum Posts by: Brad Cote

@Roy N.

Good point Roy, thank you for the correction.  I was thinking of PEI where the non-resident rates are 25-65% higher (combining provincial and municipal portions).

I suppose this is yet another reason that makes New Brunswick more attractive for investment.  No rent controls, equitable property taxes, and landlord friendly RTA. 

Nice to meet you Martine!  I am curious how your flip went in Ontario?  I will send you a PM.

Looking to connect with other Prince Edward Island investors.

The PEI market has been very interesting over the past few years. The average home price has increased 35+% over the past 5 years, supply has dropped significantly over the past few years as demand has grown. Rent controls, foreign investment, Airbnb; there are a lot of hot topics to discuss in this market.

I am hoping to network with other investors in this market, and am actively looking for deals and opportunities in the Charlottetown/Stratford/Cornwall areas. Looking for SFH, multifamily, and commercial properties.

Brad

@Philippe Busque, @Jeremy Kuo

Phillippe / Jeremy, did either of you decide to invest in Moncton?

I purchased a multifamily property in May 2018, and I am happy with the returns. I am yielding a 13% cash on cash return (~$200/unit), and forecasting a 5yr average ROI of 99% (assuming only 1% appreciation per year). The property taxes are higher if you are out of province, but that can be easily factored into you numbers.

Moncton's economy is stable and diversified, and the local unemployment rate is consistently less than the national average. Some investors get worried investing in New Brunswick due to the population decreasing over the last census period, but the Moncton CMA actually grew by 4%.

Happy to connect with anyone wanting to discuss investing in the Maritimes or investing from a distance.

Brad

@Al Carlo Agustin I would recommend first understanding your endpoint and goals, then consider your skills, financial resources and target market. You can then build a plan and start investing in a manner that best suits your specific circumstances. Make sure you consider your big picture plan initially, especially on the financing side, so that you don’t limit yourself prematurely through some thin deals.

It sounds like you are interested in rental property buy and hold. If you have access to capital/equity already, you could start by purchasing a property and renting it out. More units are always better, as it spreads out your risk over more units; for example if you have a vacant SFH/condo you are getting zero rental income, whereas if you have a vacant duplex unit, you are still getting the rent from the second unit, etc.

You will also find that the more units you target, the cost of entry, operating costs, capital costs, and deal complexity also will increase. More than 4 units means you are dealing with a commercial property versus a residential property, which will come with different lending requirements and regulations. I would recommend starting with residential multifamily (duplex, fourplex, etc.) to build some experience, and then scale to apartments when you have more experience.

I would recommend getting more exposure to real estate through books, research, meet ups, and looking at properties in your market. Learn how to analyze deals, and start talking to service providers and other investors so you can begin building your team (realtor, mortgage broker, contractor, etc.).

Good luck!

@Al Carlo Agustin

@Nav Anand, which Alberta market are you in?  A few questions:

Is the basement finished? Are the 3/2 b/b on the main floor only?

A 4-5 bedroom SFH in Calgary can easily get $1800/$1900 per month currently. You could also consider renting the garage out separately for $100-200/mo. Also if you advertise as pet-friendly you can likely get more rent too, although proceed with your own caution!

RentFaster or PadMapper are great sites in Canada to check your rent comparables.

Also, for the financing side, if you want to avoid the banks using assumed market rent, you can provide a signed fixed-term lease, and some banks will use the full rent amount if it is no longer your primary residence.

Hope this helps.

@Ryan Brocklebank

Hi Ryan, let me know if you would like to discuss the east coast.  I have multiple properties in the Maritimes, and I'd be interested to hear your thoughts on Canadian east coast markets. 

@Nathan Hillier

Thank you for setting up this thread. I am happy to see there is building interest in a new Calgary Real Estate Meetup.

I am new to the forum, but have been investing for 5 years in Canada. I am very interested in expanding into the US, and in learning systems to aid with fix and flips.

I am open to coffee networking; also, let me know if you would like any help organizing a Meetup.

Brad