All Forum Posts by: Chris Baxter

@Chuck M. it's a dry read, but lots of great info. Amazon to the rescue... 

@Chuck M. I haven't read the Cherry Chan book, but do have a multi-tiered corporate structure with a holding company that owns both my operating company and my real estate companies.  This structure is also defined in this essential book: Legal, Tax, and Accounting Strategies for the Canadian Real Estate Investor. I don't find the costs of this framework to be overkill and we are set-up for success no matter how large we grow. In identifying an accountant, look for one that has experience in REI and understands your vision for the future. Most professionals that I interviewed had no idea how to implement strategies for REI tax reduction and did not share my vision for growth and eventual retirement. A good accountant will ask YOU the questions (not the other way around). Keep looking until you find one that does...

Chris

@Stephanie Blouin cashflow in the Lower Mainland is challenging unless you increase the size of your downpayment. Have you considered smaller markets in the north or interior (or investing out of province)? 

@Elizabeth Martin there is no way of circumventing property taxes.  The provincial government has postponed it's rate reduction plans for 2021 due to financial impacts of the pandemic, but will hopefully get back on track in 2022. The rate reduction was only going to be ~$140/$100k assessed, so shouldn't be a deal breaker in evaluating properties.

@Cameron Chambers both will require capital, either yours or someone else's.  So... to gt started, your first job will be to identify where that capital is coming from and how much you need.

@Sheldon Peart I do not pay for 'expected' rent, only on rent collected.  I have no interest in ever answering a phone and dealing with tenants, no matter how close the property is to me.  Hiring on an 'as needed' basis, means that you have to be the point person for all calls/issues/emergencies. I am willing to sacrifice a few points to make these problems go away.

@Sheldon Peart  PM hands down... software can't answer a phone and deal with issues that arise.  Trying to manage a fleet of contractors from a distance will be a nightmare. You would be far better off finding a good PM that has a network of contractors in place. 

am concerned that their incentives are not really aligned with ours, for example they get paid even if there is vacancy

Most PMs charge only on gross rents, so their incentive is perfectly aligned with yours.  I would have a PM even if I bought the property next door. 

Good luck on the search 

@Marci Matejcek Ontario, BC, PEI, Manitoba all restrict how much a landlord can increase rent. Other provinces are more landlord friendly.  This doesn't mean I condone slimy landlording, simply that I like to start with a balanced playing field in investing. If a market gets hot, landlords shouldn't be subsidizing tenant housing... 

@Marci Matejcek picking a market is somewhat subjective, as it relies on YOUR criteria. The link provided by @Patrick Archer, for example, uses one set of criteria to pick "the best" cities to invest in.  If you care primarily about cash flow and view appreciation as a bonus, the moneysense ranking is garbage.   There is no single "best" city to invest in. There are markets that will meet your needs and markets that won't and within those markets there will be properties that meet your needs and those that don't.  My personal first filter, for example, is for landlord friendliness; I no longer invest in provinces where rent control is in place.  That may be a very different approach than what others take. Ontario is definitely not landlord friendly...