All Forum Posts by: Account Closed

Hi BP, little background: currently own and renting out a triplex, the property mortgage is tied to my name   ( No trust, corporation) holding the property. Now my current plan is to purchase more rental property, however I would ideally like to buy a property to live in within the next 5 years... my dilemma is how I should proceed to limit the debt I tie to my own name, assuming this would make it harder to finance future deals and ultimately my ideal living property. My current solution is to purchase larger residential rental properties (6-8 units) as financing for this would be considered commercial and therefore would not be tied to my personal debt as is my triplex, any advice as to how I should proceed would be greatly appreciated  

Hey @Rick Pozos, as far as i understand the Canadian Government doesn't incentivize investors to buy real estate as does the U.S Gov. As a result the FHA and 203k loans aren't quite a thing here in canada, typically most buyers will use as the members above mentioned, traditional financing, private lenders, LOCs, we also don't have 1031 exchanges as to my knowledge. Creative financing is, from what i know so far, limited, here in Canada. Canadian financial institutions are also very strict in their financing criteria, once again this is all to my current knowledge and im trying to learn as much as i can in financing my next deal so as to use other financing methods

Interesting approach @Michael Evans, are all these mortgages with the same financial institutions or several different ones ? Very interested in learning more about the leverage system you use 

Great insight @Austin Fruechting, its great to know how well experience pays off in the real estate game, thanks for the input! 

Hey @Chris Walters, the conventional way with the owner occupied option was probably the way i see to be the cheapest and probably the route i would take on the next property, i like the approach of going with the same institution until "no more", before going to another bank 

I currently own  triplex in the Montreal area and financed through a traditional  mortgage, I'm wondering how some of the BP members have financed some of their deals either when they already owned properties, just started out or were looking to make the next deal. Right now my plan is to refinance the property in 2 years, pull the equity and buy more property on an owner occupied deal, but im looking to learn about how i can creatively finance more deals before that time. Also currently reading the book on investing with no and low money down by Brandon of BP but a lot of what applies in the U.S doesn't apply here in Canada! 

@Andrew Martin thanks for the input! I have similar opinions with regard to the hassle free tenant, its difficult to put a price on that sort of thing! 

For a little context; 

I took ownership of a Triplex in the greater Montreal area about 7 months ago, the property at the time of acquisition was fully rented with leases set to end in June of 2017. The market rent in the area is at 755$, 2/3 units are well above market rent, with both renting above 780$ however the 3rd unit is far below the rate, renting at 700$. Now the tenants in this unit had arranged to do the lawn around the property to compensate for the lower rent, the property is 11,000Sq ft and as such has a decent amount of lawn to be cut during the summer and spring. 

My question is: Should i leave the lower rented unit at the below market rate rent and continue with the tenants providing lawn care or should i raise them to benefit my overall cashflow? The property as a whole is renting at  the market rate rent ( Unit 1: 700 + Unit 2: 780 + Unit 3: 785 Average = 755 )

Sidenote: the tenants are good tenants, never had issues with them and they even preform their own repairs as they are quite handy.

Would love to hear your opinions and similar experience!

@Maria Barraza Thanks for your insight Maria, i will definitely take what you said into consideration with drawing a line on late payments! 

@Christopher J Lemmon Wow those landlord laws sound like a dream come true, unfortunately the eviction process in my market is more like 3 months and not 3 days lol!