All Forum Posts by: Christopher Brown

@Dean Letfus Did you close on a deal that they found for you? I appreciate it's not their deal as it's not their inventory. But we're you satisfied that the companies they are marketing are solid, honest companies? Specifically, would you trust them enough to use them again to find you another deal?

Oh, but I see your point regarding the hot water, which is shared. Hmmm, that will still cause some complications or sharing.

I believe all the wiring is separated already as there are separate panels, but would need to check. The heating is electric baseboards, and there is no other gas in the basement.

I hadn't thought of that one - thanks @Steve Babiak!

I've just placed an offer on a home with a 3 bedroom top floor and a two bedroom basement suite. In my area, usually basement suites are rented with utilities included. But if I rent the top floor to one family and the basement to another, what is the best way of splitting utilities. I can't expect the top floor to pay the bottom's utilities, and asking the basement renters to pay utilities will make it less attractive compared to the competition. I've considered the following options:

- renting the entire house to one family, and allowing them to sub-lease the basement suite, effectively passing this problem onto whoever rents the entire house.

- renting out both units as "utilities included" and charging a premium in the rent for this, but then I take the risk myself if they over consume the utilities.

- charging the basement ? of the total utilities, payable to upstairs. But then they fight about who uses the most energy, and why does one need to pay for the other's over use.

- installing separate meters, but at the risk of the basement suite being less marketable.

Do you guys have any other ideas? Has anyone else run into this problem, and how did you solve it?

Thanks in advance!

I'd be very interested in what you come up with. I've had a look through your website, and I am an overseas investor waiting to buy my first property.

Hi @Zacharias Salva 

I'm new here, and this is my first post, so please excuse me for trying to provide any advice with no history to back anything up.

While I would always agree that investing for a positive cash flow is important, it ultimately depends on your situation. Lets say, for example, that you go overseas and do not have any mortgage or rent expense. Now, if you continue to pay the difference on your mortgage payment (minus your rental income) you could still be better off. You have to look at your mortgage principle pay down in your calculations to get the big picture. Assuming you took a 30 year mortgage at around 4% (equating to an $800 payment), over 10 years you would have paid down a little over $35,000 in mortgage principal. While I agree that investing for capital appreciation is a speculative game, it's probably fair to say that over the long term your property valuation will at least stay the same if not increase. So even if it didn't increase and only stayed the same, you would have built $35,000 in equity, that cost you $31,586 out of your own pocket. Not a great return, but it's something. And if you factor in rent increases over the long term, that would be even better.

If you can trim down your expenses as @Roman Pak stated above, you could be pretty close to break even point and at least enjoy principal pay down even if you can't get it to cash flow.

If you sold today for the same as what you paid for it, you are still out of pocket on your closing costs, realtor fees etc. You financed 100% so have no equity.

All I'm saying is, before you sell it and have nothing to show for it, you can at least try to trim your expenses, break even on the cash flow, and build equity on the principal pay down (ignoring appreciation) that you can later use for further investments.