All Forum Posts by: Casey Maeda

@Ashley Knodel despite BP being an American platform there's Canadians wherever you go :) I'm based in Japan but invest in the US and Toronto solely at the moment. It's been a great run in TO

@Kaitlyn Bjerk the 50-60k rehab could turn into 100k with an appraisal below that. I would stick to the brrr strategy but with a higher class property with less work involved. It seems like you want to scale so brrr over turnkey seems like a better option.

@Javier Rosales pay 12k for the property and expect to add at least 40k to fix it up. It’s 12k for a reason, wouldn’t touch it even if it was free based on the tenant quality associated with it.

@Dakota Coburn your story reminds me and reinforces my belief out of state investing for this type of deal puts you at great risk due to lack of attention to the details. After doing a skeleton renovation on one of my properties I couldn't imagine doing this without being close to the property. Sorry you had to go through a deal that went wrong. Next deal, do something closer to home

@Zachary Schimenz I would keep looking at other markets. I have to agree with the other comments, these numbers are not great. For cashflow markets try to hit the 1% rule and this property does not.

Berkshire Hathaway reported quarterly earnings with a $128 billion cash pile. I believe this is a sign if the Oracle of Omaha sees everything as overvalued, the same thought process should be followed by real estate investors particularly in the multifamily space in certain markets. That is, be fearful when others are greedy and greedy when others are fearful. Should it be wise to wait for the next pull back given where we are in the cycle? I would think so. Thoughts?

@Gary Guidi great post and congrats! Just wondering how cumbersome and headache free or not the renovations on each unit were for you? Did the renovations take up a lot of your time before stabilizing the property?

@Amr Tammam I agree Montreal is not a cashflow market but if you look hard in the outskirts you may find some good value add plays. I have found some value outskirts of Toronto where I’m from.

If you’re comfortable with the employment and population growth in the east coast, by all means go for it. For me, the macro environment has to be right regardless of what the cap rates are going for in a market. I look forward to hearing how things go for you.

Regarding the US market, there are a ton of great markets to invest in for cashflow and appreciation. Ohio, Texas, Atlanta etc list goes on. I go for hybrid markets, that’s just me.

Casey

@Amr Tammam I would confirm your financing options in markets you are more familiar before deciding to invest in unknown territory. Some lenders may let you leverage depending on the property type, your income in Egypt etc

Are you moving back to Canada to manage these properties or planning on getting a property manager? What are cap rates in New Brunswick? Have you considered using brrr in the US where there are great cash flow markets relative to Canada?

@Amr Tammam Montreal is on fire, why invest outside your own market where the hybrid of cash flow and appreciation is solid?