All Forum Posts by: Chris Baxter

@Johnson Yu  With the average home price in Canada trending north of $600k, there are many compelling reasons for exploring the USA (or other countries) for investing. My preferred market here is seeing cap rates plummet as investors overpay for FOMO.   I am doing a US market deep dive now and am reaching out to brokers in markets that show promise. I would be happy to connect to share notes.

@Axel Lafortune  hot water heaters don't really fail easily and don't cost a lot.  Assuming a rental rate of $35/month, you could install a brand new HWH every 3 years (which would be ridiculous) and still come out way ahead.

Thanks @Andrew V. for starting this thread...

·  Cash flow vs. appreciation? What do you bank on more, and why?

Always cash flow. Investing for appreciation only is gambling. I accept appreciation as a bonus but never plan on it when investing. If a property doesn't cash-flow (or I can't add value), my money is better served elsewhere

·  Asset type? SFH, multi-family, commercial, condos...? Why? What other asset types have you explored and why did you choose against them?

MF (6+ units) as it 1) eliminates bidding against emotional homeowners 2) simplifies financing 3) more doors under one roof

·  BRRRR, buy & hold, flip? Why?

BRRRR (which includes buy and hold). Appreciation is forced by improving NOI which generates equity to leverage

·  Do you look for properties to fix up? If yes, cosmetic work or major renovations (conversion)? Are turn-key properties not worth the premium in price?

BRRRR implies rehab, so yes.

·  Location? Major metro areas, suburbs, rural? Why?

Mid-sized cities with diverse economy.  Lower price per door when compared with largest cities.

·  Tenant profile? What do you look for in tenants? How important is tenant profile in your overall strategy?

I don’t deal with tenants… that’s the job of my property managers.

·  What's next for you? If everything goes well, do you plan on continuing on doing what you do or get into other areas of real estate (ie move from SFH to multi-family)

Buying more / larger MF.  Exploring markets in the USA

@Jordan Perry   biggest lesson was to use a broker that is local to the market you are investing in. They have access to lenders that understand the market.

@Tomislav Glamuzina I think many new investors focus on getting a property without having a clear vision for the future. If you don't know where you want to be, how can you determine if an investment is good for you? Writing your goals down is one way to kickstart the process, but the intermediate steps are also key, especially if there is a big gap between where you are now and where you want to be. 

Our market here in MetroVan is a challenging one, what's your strategy / ideal property? 

@Ernesto Miguel Credito  you are off to a good start by reading these forums, specifically the Canadian ones, where there are lots of passionate investors with Canada-specific experience. I am a big believer in identifying where you want to be in 5-10 years and then working backwards to where you are now to identify the people and resources that can help you on your journey.  What does "financially independent" mean to you? When do you wan to achieve this? Why do you want to achieve this?  Without clarity on the answers to these questions, you may never get started or reach your full potential. 

@Ernesto Miguel Credito welcome to BP!  Lots of books and podcasts will tell you that if you want help, add value to the person that you are asking for help from. Having just read "Who Not How", which was featured in 2 back-to-back BP podcasts recently, I am completely open to connecting with any new investors to see how we can add value to each other.  Send me a DM and I would be happy to learn more about your goals and strategies and  see where that takes us.  Looking forward to the chat!

@Vin Gupta  the following provinces are more landlord friendly:

• AB
• NB
• NL
• NS
• QC
• SK

Ontario, BC, PEI, Manitoba all restrict how much a landlord can increase rents.

@Jaydon H. this is what I use... it does everything and is specific to Canadian investing (includes tax calculations and financing):   https://www.rentalsoftware.com...

@Vin Gupta we also have a reputation for heavy taxation, and our markets are extremely competitive as well.  Just make sure you do your due diligence before investing here. Good luck!