All Forum Posts by: David Steinbok

This has turned into a great thread with alot of information. So like I said before I invested in sfh that I then converted into a legal duplex. I know that multifamily and larger unit building is the way to scale but I cant seem to figure out how to make the transition.  So maybe some of you with alot more experience may have an idea. I live in Toronto canada. in the suburbs where (about 45 min away) i invest an avg 6plex is $1.4 million, so with 35% down i need $500k with a $900k mortgage. A private lender would charge 6% to 10%. A single family house on the same street is about $450k with 20% down at 3% interest. So you need $90k. And once you legalize it to a duplex its refinanced at $600k. You get your d.p and Reno cost back and have some equity left over. And you buy another. I thought of selling 2 houses to come up with a down payment for a bigger building, but in Canada we don't have the 1031 tax that you have. We pay 53% capital gains tax when we sell, so I would have to pay over $100k in tax. 

Does anyone have any ideas that I can look into. Some of you mentioned syndication.  I'm not to familiar with that. Dave

and to answer the original thread, I started with condos then sfh and converted then to legal duplexes.  That is the strategy I learned from investors in my area. I live in Toronto canada so larger properties are out of reach. 

Sam grooms. That's some good info. How did you find someone to invest with. I'm looking to transition into bigger buildings but in my area and my circle of investors, we are all doing sfh conversions. 

Also what was the time frame of your passive investment. And were promised a % on your money invested or a % of new building valuation/equity? Thanks

Check out this link. I just heard about it a few days ago. https://truesubmeter.com/

Good afternoon everyone. Do you have any recommendations for a property management company in the London . I have a house that will be empty soon and I currently self manage but don't want to anymore. Thanks in advance.  Dave

I just talked to my accountant today about this. I learned today that if I put my properties in a Corp I would still have to personally gairantee a mortgage since it has no credit history or income. I can still be sued since I would be a director of the Corp and anyone who is going to sue will do so to the corp and director. Also under j.t. and the liberals my corps passive income will be taxed at 54%. Also tax returns on a Corp are more than personal ones. So I'm not buying under a Corp. Apparently I can earn up to 203k$ in rental income before I have to pay 54% tax and I don't earn that yet. And you can still have write offs without a Corp. 

I agree with Larry. You are making it way to complicated. All that work and set up so you can buy 1 house and split the 300$/mth cashflow 3 ways. Just buy some property and when your portion of the cashflow is greater than your day jobs income, then reevaluate where your at and quit your day job.

Hi. Good job on your first 3 purchases.
My thoughts, why do you have 3 houses in 3 states. I would focus on 1 area and build your team of contractors, brokers, agents and PM and become an area expert as they say. Once you have 5 or 6 properties then go and explore another state.
Second question is why are your houses paid for? I would put a 80% ltv mortgage on every one of my properties (assuming they still cashflow with a buffer) to recover my Reno money and to give me money to put down payment on more houses.
The first few years should be your acquisition years. Where you are buying, renovating and refinancing to buy more. Once you have a few houses, (it's a different number for everyone) then you switch to the paying down the mortgage phase. So that by the time you are ready to retire and sit on a beach or play golf all day, the houses are paid for and you can live off the rental income. 

This website calls it the brrr strategy and it seems like everyone is doing it. Refinancing your personal home to get started  will jump start your investing career. and you will have money for the dp and Reno's. And depending on your equity you may have enough for 2 houses. 

I've taken tenants to court to get back rent and won. You take the eviction from ltb and go to small claims court. You add up overdue rent, repairs, garbage removal and cleaning and any other expences you incur. And you get a mediator at small claims court. They negotiate for you and set terms. Then judge rules on monthly payments for your ex tenant. So I got 150$ mth for next 6 years. Better than nothing. And if he doesn't pay I call judge and they issue warrant for his arrest. He hasn't missed a payment in a year.