All Forum Posts by: Chris Baxter

@Ben Leybovich another way of looking at it is that there is nothing wrong with having a preferred strategy, but you need to find a market that supports that strategy. I think you can either be focused on a market (and let the market dictate the strategy) or focus on a strategy (and let the strategy dictate the market). I understand and prefer buy/rent/hold or BRRR, but that simply can't be done in my market without putting up huge down payments. I therefore invest elsewhere in markets that support my strategy.

@John Dunham. Seasoned investors don't want to hire a PM that is just trying out a new gig to see if they like it. I invest out of my market, and my PM is a key part (probably the most important part) of my team. If you are starting any business, do your due diligence. Start by:

1) identifying your potential competition. Who else does PM in your market? What do they charge?

2) know your market inside and out 

3) build relationships (local REI, realtors, lenders)

Then... jump in with a professional presence and give nothing less than 100% to your clients. That's what I expect from my PM teams

Good luck!

@James Wise what's a typical per door cost for small (6-12 unit) B class MF in Cleveland? 

@Steven Carnahn when top and bottom are both rented, you should have no problem with positive cash flow. Just make sure you include ALL expenses in your analysis (including the value of the labor you are putting in yourself). As you acquire more properties, you will discover that your value is in finding deals, not in shoveling snow!

@Brandon Copeland St. John's is one of my favorite places in all of Canada. I haven't been in 5 years or so but just booked a trip there in early June and am looking forward to the visit. Every time I wander the downtown core, I find myself thinking about REI opportunities and agree that there is a ton of potential. I'm sure this next trip will get me thinking some more, and I plan on spending my evenings wandering around with a keener eye to the possibilities.

Thanks for that @Roy N.  People often look at me funny when I can't spout the cap rates for properties I own. Realtors often ask "what kind of cap rate are you looking for?" and again, I get blank stares when I reply that cap rate isn't important. 

In listings, agents present the best possible cap rate to attract buyers. If you look at the financials, you'll see that many expenses / income adjustments that should be included in the NOI calculations are omitted: vacancy, property management, maintenance, snow removal, anything done by the current owner, etc.

My advice...ignore cap rates and do your own financial analysis of any deal

Hi @Roy Cleeves... loaded question as cap rate is only as good as the expense data you chose to include in the analysis. We're at 6% using conservative vacancy and maintenance expenses. I personally focus on DCR and cash-on-cash return as my indicators when analyzing properties.

I see things are still hot in KW; I have a condo there as well and am finally seeing some appreciation on it.

@Jan B. Have a look at smaller markets in Ontario and Quebec, as well as large cities in the Maritimes (New Brunswick, Nova Scotia, PEI, and Newfoundland). My last purchase was a six-plex in Moncton (NB) and it cash flows nicely.

Hello @Alex Friesen, welcome to the world of REI. As a fellow Canadian that invests in Canada, I would suggest that you identify the type of investing you want to do (buy and hold, flips, etc.) then identify a market or two that supports that type of investing. The best markets likely aren't in your backyard, so be prepared to search further afield. Once you've identified a market, connect with property managers and realtors there; they will be your trusted partners in success.

If you do it right, any investment is turnkey; why do you need a company to do the legwork for you? Find a market, build a team, buy a property, and accept the cash flow.  I own properties on the other side of the country and play no role in their active management. 

As @Matt Geerts and @Roy N. have pointed out, Canada is a HUGE country and there are many markets with excellent cash flow and teams of professionals to help you.