All Forum Posts by: Brandon P.

Did you inspect the properties before you purchased them? 

Thanks Volker, will definately reach out and join the zoom.

You can increase your liability insurance coverage if thats all you are worried about.

Some advantages of owning properties in a corporation include:

Income tax planning/splitting opportunities

You may qualify for the lifetime capital gains exemption if you are Canadian if you sell the shares of the corporation in the future

Limited liability

Less personal debt

Some disadvantages are:

Net income is taxed as passive income at the highest rate

Corporate tax returns are more expensive than personal returns

There are still several banks other than CIBC which provide residential mortgages to corporations. Some of them require personal guarantees, it all depends on the lender. Yilmaz is right in that the section 85 rollover would be the method you would roll a property into a corporation without having to pay capital gains if the property has appreciated in value. 

It will help to consult with a CPA who is experienced in dealing with real estate corporations. Once you explain all the details of your situation to them, they would be able to explain your options and recommend the best course of action for you.

How would your legal system process an eviction when there is no lease in place??

If the lease she produced is not executed, there is no legal contract/obligation for you to provide a home and she does not have a right to live in the property.

Hire movers to clear out the house, change locks and find a good tenant. 

LVP or sheet vinyl seems to be the most durable and waterproof flooring, the wholesaler and installers that I purchase flooring from agree with this.

The products around $3 psf are super durable, I see them being installed in commercial buildings and offices with high foot traffic. 

Pro tip from the installer is to glue every piece down, not just the borders as the pieces will shrink and create gaps if you only glue the borders.

Building new requires more capital, time and planning up front whereas a rehabs are typically shorter and cost less money out of the pocket.

Have a look at what new properties rent for in your area vs low properties. 

Create realistic projections to see how much the revenue and expenses would be with the new properties vs old ones & see how this would change if you scaled up from 2-10 properties. Also, project estimated asset values as the newer properties will be worth more when you sell them in the future.

Educate yourself about the local building/zoning bylaws because if you can only build multiple units if the lot is zoned for it.

You don't have to pick one or the other either, you can try both and see which one works best for you.

Re-financing to buy more properties is a great long term plan as long as you do not get over your head and run out of money doing it.

Ask yourself the question, in 20 years, would you rather have the cash flow of 2 properties now or 8 properties that have appreciated and are cash flowing. 

House hacking would probably work the best if you are buying your first property. Buy a property then move into it and rent the rooms out to friends or other students.

If you aren't going to live there, try to rent it out as a whole. Renting to college students is tricky as many of them do not want to rent for a full year which can result in high turnover. Renting out a house by the room is also an option, but quite a bit more work to manage. 

Find someone in your area who is doing what you want to do and learn from them, this will help you to better understand what you need to do and whether or not it is a good fit for you.

You can still rent to a group of people under one lease, you would just need to amend it if they had someone move out and had a new roommate move it.

I have had several tenants which were roommates and just knew each other through work or school. 

An upside to it in the current economic conditions is that multiple tenants may have 3-4 sources of revenue streams in a house where a family may be limited to one or two incomes. 

It’s much easier for 4 people to pay $500 per month than for one or two people to pay $2,000 per month.

Renting individual rooms out is an option but it requires more management and can be a huge headache.

Good luck, hope you can make something work out!