All Forum Posts by: Chris Walters

Originally posted by @Ralph R.:

@Chris Walters  Chris a part of  due dilligance is always PM. If the property won't support management than you don't buy it. Why would you spend $100,000 dollars on something than manage it for free?? If the property isn't making enough to pay a manager and you are self managing than you are working for free right?  You can't build wealth that way. RR

It's part of the closing cost where i am from

Jonathan Perez All depends on how comfortable you are with managing the property. If you are not scare to get your feet wet, face the possibility of dealing with tenants, then get rid of the property manager and do it yourself. Yes, having a PM might save you a headache, but doing it yourself will also save you around 10% of the income. Especially the fact that you would be living there. If you had a few peoperties that were distant from each other, then I might understand having a PM, but this is your first property and in my honest opinion, if you're getting it under contract you should also learn to manage it. Unless if your ROI is really high and you can afford the PM in that equation, that is money that can go for repairs, vacancy, or mortgage.

Safest thing to do is contact city, police and/or attorney. If the car was parked in front of a private driveway entrance, i am not sure there would be much debate about getting it removed. An attorney explained to me that the safest thing to do is take picture and a video showing the condition and placement of the vehicule. From there, get an attorney or the city to deal with the rest. In some cases it might cost you a few bucks but at least you remove most if not all of the liabilities. Getting it towed will be an option but there are steps to take in order to cover your bases. For sure there are laws. Just follow them and you should be fine

Jordan Kreisher call your local authorities and write a letter to your city complaining that you have an illegal vehicule on your property. The moment the lease is considered terminated, everything in or on the property is likely considered abandoned. Unless if your city has specific laws, unauthorized vehicules on your property can be towed whether or not you have the title. On top of that, something tells me that the car is either not in their name or the plate was not renewed. Either way, it has to go.

Adriel Hsu congrats on your first deal! I kept freaking out the more I read your story. But honestly, thank you so much for shary it! Not only will you show many people that anything is possible, you were humble enough to admit your mistakes and analyze them. This is the type of personality it takes and for that you will most likely be heading on the right path for your next properties. Your story is great and for sure i am keepingthis as a reminder. If you have a great location, i would suggest to keep it for 5 to 10 years before revisiting the idea of selling it. Often enough, where appreciation is low, cashflow can be high. I will take cash flow over appreciation anytime, because i am in it for the long run. Paying down that mortgage will increase your equity which in turn will increase your opportunity to obtain more funding for your 2nd property. Good luck on your great journey my friend!

@Sebastian Taylor You said it right! A different bank account for each LLC. One less horror story to tell around the camp fire :)

@Roberto Westerband To be safe, have one LLC for your passive and another for your active. First, it will save you money in time your CPA will have to spend sorting out things. Secondly, the last thing you need is the government wondering if you are doing everything right and anything wrong. The more transparent your business and taxes look the less headaches you will have to face with the IRS up your arse. Ask anyone who's been audited how annoying it is to have to prove little details that seem obvious, not to mention the CPA's invoice for having to sort your stuff when the tax man demands to open the books. Better safe than sorry. For the extra thousand or two it will cost to open an additional LLC for your active stuff, you will be winning in the long run.

Hi BP, Can members please share with me the percentages you use for expenses (vacancies, repairs, property management,etc.) when analyzing income properties. I am trying to see if the numbers I am using are similar. Investors from Montreal, feel free to pitch in. Thanks, Chris

@Philippe Busque I've been looking at Trois-Rivières recently and was wondering if there is money to be made there. It seems interesting but rental prices are very low it seems.

@Olivier Pare I've been analyzing mtl for almost a year now and prices are killing cash flow. I found many properties that will have a negative cash flow. Either the current owners over paid initially, renovated above market value and hope someone will catch the bait or they are being greedy and over pricing the properties. One way or another, there is no way I plan to pirchase a egative cashflowing property. What cash-on-cash ROI are you getting when running your numbers?