All Forum Posts by: Brendan Conners

@Michael Voulgaris that’s a great point about interest rates. Just another reason to have strong cash flow compared to break even or just over break even. It will provide more of a safety net if interest rates raise significantly after 5 years. ideally I would have strong enough cash flow to still be cash flow positive and rents would have also increased over that 5 year period to off set some of the mortgage increase. 

Second and third opinions are something that I’m always looking for, being a new investor. Unfortunately I don’t really have anyone in my life that I could consider a “mentor” as my family has never been very entrepreneurial. That’s why I’ve come to Bigger Pockets to try and change that. I’ve identified a potential opportunity on the island and have reached out to @Jason Ridout to get more information on it. Being both a realtor and investor, I’m hoping that he can give me some guidance. 

@Michael Voulgaris I just received my pre-approval yesterday for just over $500k but at 2.29%. I will be negotiating that over the next week or so. I’ll have to look into the implications of having my “principle property” on the island or northern B.C. but I do see the appeal. The first time home buyers incentive will give me a nice break. have any of your properties been considered your “principle property” and have you had any issues with that? 

Another consideration is that if I max out my mortgage, I won’t have anything left over for renos so it would have to be an almost turn key. As much as I would love to do the renos myself, I don’t see me taking weeks off from work to do so. However, you have definitely peaked my interest and I will see what the market has to offer currently in the areas you mentioned. 

Hi @Michael Voulgaris, thank for sharing your experience. I apologize for not getting back to you sooner but I’ve been working like crazy and it’s been hard to find the time. I really like to put some though and consideration into my responses and reading posts. There was a lot of info to digest in yours! I really appreciate that.

I love the flexible model that you’ve come up with to adapt to the market. Additionally, the security of having business pay for the rentals. Are you reaching out to these companies yourself and letting them know about your rental options? Also, are you yourself negotiating these rental packages or does your property management company handle it? 

$3,000 a month in net proceeds, from 1 property, is very impressive. The duplication of this is something that can lead to financial freedom, which is the ultimate goal. As @Conor Kelly mention, is seems as though it’s set up as a very active property but I’m not opposed to that. Especially when you can achieve numbers like that.

Your investment has a lot of moving pieces (which isn’t necessarily a bad thing) but I feel as though a lot of mistakes can be made. Remote investing, short and long term rentals, business rentals,  add on options, etc. Being a new investor, and just getting into the game, what to you suggest for someone like me? Do you think that this model can be replicated on a smaller scale? In the lower mainland? 

It sounds like you have your systems down and I know how much bigger pockets stresses the systemization of everything. I’m definitely interested in talking more about what you have going on! 

@David S. Hi David, I can’t give you exact examples as I’ve been busy at work while waiting for my pre-approval. Although, as others have stated here, you can expect a $150-$300 in cash flow a month on some properties. When I said $500 earlier I was just being optimistic, you’d be hard pressed to find anything that high. 

I’ve seen a lot of growth South of Hwy 1 in Chilliwack. The north side may follow soon. However, the South side has the Vedder river and a lot more recreation, which is more appealing. 

@Theresa Harris thanks for the reply and I’ve actually done a lot of research on the Nanaimo area. There is a strong demand for rentals in that market and has seen appreciation start to ramp up in the past couple of years. 

I myself have been through Nanaimo a few times and can see the appeal to why people would want to live there and escape the mainland. Detached houses can still be purchased there for $400-500k. 

It’s definitely an appealing market but I’m just not sure about it for my first purchase. Especially if I’m wanting to build some sweat equity before I rent it.

@Conor Kelly My concern with being break even, or even negative, is that it will prevent be from accumulating more properties in the future.  Ideally prices and rent do go up in future years but that can be a slow process sometimes. Building my portfolio May stagnate as a result if break even or negative cash flow properties keep eating into monthly expenses.

I’m thinking that a middle ground between enough cash flow to cover unforeseen circumstances ($300-$500?), and appreciation may be the best way to go. This is why I’m looking at places like Chilliwack, where cash flow opportunities can still be found. I also frequent the area and have seen massive growth and development on the south side and see a lot of appreciation potential for the coming years. 

@Wendell Fong thanks for the the response and alternate perspective. I watched McElroy’s video and yes he does come up with some very valid points. However, there will always be people calling for the downfall of the market. By the way he makes it sound, any implications are still a little ways out, and the rental market will remain strong.

In terms of timing the market, I don’t believe it will be advantageous for me to just continue waiting on the sidelines, waiting for the perfect opportunity. Otherwise, it may be years of being stuck in the analysis paralysis stage. I feel like I really just need to just get a foot in the door and go from there. That may be FOMO talking but I’m not willing to overpay and get in bidding wars with people. If the number don’t work for a positive cash flow of at minimum a few hundred bucks a month, I won’t buy.

@Conor Kelly Thanks for sharing you experience Connor. I’ve been looking at a few areas in Ontario such as Niagra, St. Cathrines, and Windsor. Even though you say that Windsor has gone up substantially, everywhere else has too. However, a detached property in these areas are still the cost of a small apartment here in the lower mainland. They also still provide a lot of potential for cash flow.

In terms of appreciation, the recent spike in real estate prices makes me apprehensive to get in now. People have been calling for things to fall off a cliff for years now but it never seems to come. Still, having that small amount of cash flow is a must to hedge a bit in case things go south.

Another consideration is the strata fees that have recently skyrocketed, making things even harder around here. That being said, places with cheaper strata fees can still be found but it makes me more inclined to try and flip properties, more than buy and hold for appreciation. At the same time, I do agree that the unique geography of the lower mainland has made it a prime spot of appreciation. With limited viable land to build on, low housing supply, and continue immigration, appreciation will always be the biggest factor around here.

I’m hoping that people can share their experiences with me about their recent successes in BC real estate, markets to be looking at, and the best ways to get started (apartment, townhome, detached, etc). If people want to connect, I have an eagerness to learn from those who can take me to the next level. 

I'm interested in flipping, BRRR, cash flow, and possibly remote investing as the lower mainland opportunities are quickly drying up. I've been looking at Chilliwack, Nanaimo, and Prince George. Also many places in Ontario that provide much more opportunity.

After over 5 years of learning and educating myself about the world of real estate and wealth building, I’m finally in a position to get into real estate. I’m now 24 year old and have been working harder than ever to break in the the ridiculous market that is the Vancouver Lower Mainland. I’ve been working, at minimum, 60 hours a week to save up for a down payment. I’ve sacrificed in many ways to be where I am today.

Hey everyone, I'm new to Bigger pockets here, from Burnaby, and this is exactly what I've been looking for! Let me me know if this group has come together!