All Forum Posts by: Danny Di

Good day everyone.

I'm in Canada so the laws and processes may be different compared to the U.S.  

I'm looking to rent my condo, fully furnished for short term durations (2 weeks, 1 mth, 2 mths, etc).  How should I lay the contract and agreements out to protect myself in every angle? I was thinking about including Internet Access and TV also so I may have to lock those down a little so they don't go over it's limits.  As for other things like furniture and tv, how can I protect myself in the event something gets damaged or stolen?

I've never leased a property out so I'm a total noob when it comes to the subject.

Any help would be greatly appreciated, thanks!

Dan

Thanks everyone

After calling a bunch of brokers, I found one that processed it with a minimum of 10% dp. My credit score helped a lot they told me with it being 805. :)

Someone was actually living in there!?

Hi all,

I'm in a sticky situation at the moment.

I sold my property closing in 2 weeks. I've been self employed for a bit over a year. No mortgage company wants to offer a mortgage to me unless I was self employed for a minimum of 2 years. Does anyone have any recommendations to offer who can finance me with a business of under 2 yrs?

Thanks

Hi everyone,

I sold my personal property a couple weeks back. I've been having some serious problems with the buyer and agent, very unprofessional. I received the deposit and signed the deal over. They came to view the property b/c on Sched A they're allowed to twice before closing. They went through my entire property, like animals and moved things everywhere and destroyed my closet door. They're now requesting a new closet door and 10 other things which was never discussed in Sched A and prior to the closing. I sent the status cert off last week and never heard back. My agent was told that the buyer didn't have financing approved yet. They also didn't ack the status certificate and advised it will be another week before they can. They come back daily with new stories about the financing, some days they have it some days they don't. This is a nightmare already. We've had another interested buyer seriously interested in submitting an offer and I personally want to sell it to them. The current buyer is getting on my nerves and messing around with us.

My question is, do I need a mutual agreement contract signed by both parties to terminate the contract? Or is the deal automatically dead due to the following 2 clauses in sched A (see attached image) which were not actioned upon.

Also, is it possible to kill this contract and keep the deposit due to the damages and wasted time because I could have had my unit sold to several other interested parties.

Thanks everyone.

Thanks a lot for the responses everyone, eye opening for sure.

I want to find something, even a duplex or triplex where I can put 5% down and cash flow positive something decent. I don't want to tie too much cash in to each property with a 20-30% downpayment, plus at this time I can't afford it as I'm starting out. I think in Toronto and GTA it's literally impossible. I found a triplex in Oshawa, with a 5% down payment I would be in the negative in terms or cash flow after mortgage and expense are accounted for. I would maybe cash flow a little if I put 50% down, but that's not an intelligent investment by any means.

Lets chat about this property in Cambridge which I posted in this thread...if you want to look it up on the MLS it's 136 Cooper St. Before I posted this thread, I looked at it from the outside, sounded perfect on paper and I did the inquiring with lenders and crunched numbers. It looked decent, until your responses AND my visit to the units yesterday morning. I drove off after the appointment with the biggest migraine and headache.

Here's the breakdown..in brief:

1 - The main house - being rented out for 1250/mth. The tenant has been there for 2 years. Very angry individual, hates the landlord and is frustrated from 6+ months of viewings of the home and given only 8 hrs notice instead of the by law 24. Advised that the landlord does not acknowledge her and does not repair anything asked for. She has to contract and pay for the work herself. The place was total chaos, I couldn't barely see the floors with the amount of clutter and clothing everywhere. Single mom, 4 kids a bf living in the place and a dog. The home was destroyed from the inside, holes in walls, doors off the hinges, railing scratched and scraped away, ceilings destroyed, there was a water leak in one of the rooms for 2 yrs! still not fixed..just a mess

2 - The store - I walked in to a POOL of water, flooding. The place has been leaking for mths! It's been leaking for so long the tiles ripped off and the floor is caving in. Mold and infestation all over the walls in the back, alarm is going off bc of the water leak shortcircuiting everything, I'm surprised it hasn't caught fire yet.

3 - 2 bedroom appt - Single mom, kid, dog living in the place. Again, total chaois, I couldn't see the floors, clothes and junk everything. The master bedroom had so much clutter I couldn't even walk in. Tenant advised of issues with washroom, she had to contract the work out after several months due to the landlord not fixing the issue. Icing on the cake here...the tenant advised me NOT to buy the property.

4 - garage - Basically an empty car garage, only thing illegal was the hot water tank sitting on the concrete...some cracks going through the ground.

All in all, what a mess. I advised the agent that I wouldn't even consider in the 200's.

On to the next :)

Hey everyone,

I'm trying to get in to real estate investing and I found a little something which caught my eye so I investigated it in depth and I'm wondering if I can receive expert analysis from the pros on here. This property is about 45 minutes out of the city in a very nice quiet area. I just sold my condo so I have the option of moving in to this property and buying another property for myself OR to buy this for investment purposes only.

For resale, this would be tough due to the fact that it's been on the market for 4 months already with no sale. The sellers agent advised that they received several offers for it but no one can come up with the financing and 35% down payment.

This property is an 1800 Sq ft home which is currently being tenanted. Behind the home is a big detached garage with a 2 bedroom apartment above the garage which is currently tenanted. The garage is equipped with an office and washroom - vacant. Attached to the home is a variety store which is not in business any longer - vacant.

It's currently bringing in $2050/mth. It has the potential of bringing in 4k/mth based on on the past numbers which were supplied to me below:

1. STORE - previous lease - $1400/Month + heat&hyrdo - $16,800/year
2. Main House - $1250/month + heat - $15,000/year
3. Workshop/Garage previously rented $600/month + heat - $6,600/year
4. 2 Bedroom above workshop $800/month+heat - $9,600/year

The 2 tenants are on month to months and are willing to stay. I could move in to the 2 bedroom above the garage and live there myself, that's an option which I've considered.

I had the wild idea of getting the variety store running, I'm not sure if I can have someone run it for me on a full-time basis and maybe SELL the business and lease out the rent to the new owner and bank the business sale proceeds...what are your thoughts?

Back to the numbers...unfortunately, because it's got a commercial lot attached, I can't get a residential mortgage loan with 5% down. The bank wants 30-35% which I cannot afford. I called around and found an option for 15% down which may be possible. It would be 2 lenders financing the mortgage with the below structure:

Mortgage:

-1st - at 70% LTV $244,300 monthly payment of $1303.81/mth

-2nd with Private lender at 15% $52K total 85% LTV monthly payment of $634/mth (INTEREST ONLY LOAN)

The lender/brokerage fees to set these up are roughly $7K-10K

$52,500 Downpayment (15%)

$8.5K FEES

Total Cash - $61,000

Mortgage + Expenses = $3085/mth

I basically don't have 60k so I'll need to open a LOC to cover half of that amount.

Basically, if I have all 4 rentals going at the same time I'll cash flow approximately 1k/mth. Or, I can move in to the 2 bedroom for 800/mth instead of buying a secondary property for myself which I'll need a 350-400k mortgage for. Tough situation..

What are your thoughts?

Thanks,
Dan

Hey everyone,

I'm trying to get in to real estate investing and I found a little something which caught my eye so I investigated it in depth and I'm wondering if I can receive expert analysis from the pros on here. This property is about 45 minutes out of the city in a very nice quiet area. I just sold my condo so I have the option of moving in to this property and buying another property for myself OR to buy this for investment purposes only.

For resale, this would be tough due to the fact that it's been on the market for 4 months already with no sale. The sellers agent advised that they received several offers for it but no one can come up with the financing and 35% down payment.

This property is an 1800 Sq ft home which is currently being tenanted. Behind the home is a big detached garage with a 2 bedroom apartment above the garage which is currently tenanted. The garage is equipped with an office and washroom - vacant. Attached to the home is a variety store which is not in business any longer - vacant.

It's currently bringing in $2050/mth. It has the potential of bringing in 4k/mth based on on the past numbers which were supplied to me below:

1. STORE - previous lease - $1400/Month + heat&hyrdo - $16,800/year
2. Main House - $1250/month + heat - $15,000/year
3. Workshop/Garage previously rented $600/month + heat - $6,600/year
4. 2 Bedroom above workshop $800/month+heat - $9,600/year

The 2 tenants are on month to months and are willing to stay. I could move in to the 2 bedroom above the garage and live there myself, that's an option which I've considered.

I had the wild idea of getting the variety store running, I'm not sure if I can have someone run it for me on a full-time basis and maybe SELL the business and lease out the rent to the new owner and bank the business sale proceeds...what are your thoughts?

Back to the numbers...unfortunately, because it's got a commercial lot attached, I can't get a residential mortgage loan with 5% down. The bank wants 30-35% which I cannot afford. I called around and found an option for 15% down which may be possible. It would be 2 lenders financing the mortgage with the below structure:

Mortgage:

-1st - at 70% LTV $244,300 monthly payment of $1303.81/mth

-2nd with Private lender at 15% $52K total 85% LTV monthly payment of $634/mth (INTEREST ONLY LOAN)

The lender/brokerage fees to set these up are roughly $7K-10K

$52,500 Downpayment (15%)

$8.5K FEES

Total Cash - $61,000

Mortgage + Expenses = $3085/mth

I basically don't have 60k so I'll need to open a LOC to cover half of that amount.

Basically, if I have all 4 rentals going at the same time I'll cash flow approximately 1k/mth. Or, I can move in to the 2 bedroom for 800/mth instead of buying a secondary property for myself which I'll need a 350-400k mortgage for. Tough situation..

What are your thoughts?

Thanks,
Dan