All Forum Posts by: Dennis Cosgrave

I would look at the difference in rent between air-conditioned and non-air-conditioned in the area that are comparable. If the difference in rent justifies the cost of installing air conditioning, I would do it. For example, if the cost of installing air conditioning is $2,500 and you can increase the rent by $100 per month, that is a 50% return on your investment. No brainer; do it. 

Those calculations are a function of the market conditions in the area and the quality of the property you are looking to invest. Do the research for those statistics in your area and use them in your calculations. 

If you can get 100% LTV, go for it. There is only two caveats. What is your reserve position? If you have sufficient reserves to weather any storm, you should be good. Secondly, what is the term of your financing? If you have 30 year fixed loans, then you should be good as well. However, if you have to refi in the next 5 years, that adds a big risk element.

Todd Powell, a good gauge is the reaction you get. When you are attacked and called a bunch of names, you know it is a total waste of time. I never engage in those kind of arguments. I provide links to the facts and if they are convincing, I usually get no response. I am a born skeptic so I never believe anything I read and do my own research. I always recommend that everyone do the same. 

Steven Westlake, that really sucks. All the jobs I had post university were management jobs and I always had a contract. I was fired unjustly from my last job and I sued and I settled for 5 years salary plus the equivalent of my benefits. That was a big chunk of change that I invested in real estate. The downside was that I was blacklisted in the industry so I was never going to get another job. I really did not care since I had already made the decision to go full time into real estate. The cash settlement was icing on the cake. 

Jonathan R McLaughlin, a little background is necessary. This took place in the 1980's in Canada when rent controls were in full swing. Tenants had more rights than landlords and it was almost impossible to evict tenants whether they had a lease or not. This particular tenant was on welfare with a 12 year old son who had mental issues. Since she had nothing better to do, she would use any excuse she could dream up to drag me into court to get her rent reduced. The system also provided public defender lawyers so there was no cost to her. The last instance was she wanted her apartment redecorated. I offered to pay for materials but she complained she had allergies and could not do it herself. I suggested she hire someone. She stated that under the law I was required to redecorate every 2 years which was totally incorrect. Under the law, the landlord was required to "maintain the premises in a habitable condition". Needless to say, she lost that one but I wasted a whole day sitting in court waiting for the case to come up. 

Since it was next to impossible to evict her, I decided to sell the property. I had enough aggravation. However, as they say, karma is a b*tch. I sold the property to some foreigners who thought electricity and running water constituted a luxury apartment. From all my court appearances, I noticed that foreign landlords were treated much more leniently, especially if they pretended they could not speak english. The last I heard, they made her life a living hell and she eventually moved. 

We live in sad times. People are becoming more afraid to express their true opinions. Say the wrong thing and the Twitter mob will attack you and try to destroy your life. I am hoping we have enough posters on here that are immune to the attacks of these extremists and are willing to stand up to them. If not, it will only get worse. It just amazes me that employers can fire workers just for what they may have posted on the internet. I wonder if there are grounds for a wrongful dismissal suit. We need a few high profile suits that might make employers think twice before going down that road. 

I would have been thankful that the tenants left. You can immediately begin renovations which would allow you to raise the rent and screen your own tenants. Imagine if you had inherited those tenants and they became a nightmare from hell. Sometimes blessings come in disguise. 

I once purchased an apartment building only to later discover that the seller sold because of a nightmare tenant. I sold the building several years later for the same reason. 

Frank Breetz, you are correct. Some people work hard and never earn very much. The question is, why is that? My father told me a long time ago, Work with your head, not your back. In other words, it is more rewarding to work smarter, not necessarily harder. 

Think and Grow Rich - Napoleon Hill