All Forum Posts by: Huong Luu

@Steven Holt Where are you looking to buy? Your closing cost are to thin. Some areas have double land transfer tax. A good rule of thumb is 3-6% for closing cost. Your lawyer cost could be $1000 + disbursements. Home inspection cost depends on price of the purchase/market value of the house. In Ontario, home inspection for properties under $1M is usually $500, and properties over $1M are $800. Same thing with appraisals (range from $300 - 600). 

Its great you are doing a ton of research and analysis. I would caution you against analysis paralysis. Good luck. 

 

@Kim Holley Ensure you include the property taxes and insurance in that 'rent amount'. Keep in mind, if you want to sell now, then RTO isn't the best option. Another option is Agreement for Sale. This will be less expensive for them in the long run. And it allows you to sell now. Your questions about VTB: ask for the highest % down payment from them as you can (15%-30% is even better). Do you still have a mortgage on this place? That will affect how you set up the VTB. The interest rates for a VTB can be anywhere from 2% - 10%, open-no penalty, 6 months -25 year term. So you need to see what they are willing to do and what works for you. Good Luck

@Paul Neagle, both  @Sam Hanaa and @Hai Loc, Port Credit is already established. You won't cashflow as well. Stick to your plan of Sudbury. Windsor and Hamilton are high too so not a great place to get into. Revisit your strategy: buying condos vs MFH are different with different clientele. Also keep in mind, with condos, you have growing annual maintenance fees and potential special assessments. Also student rentals are very different then renting to families.  You might want to consider Peterborough or Kingston. Good luck. 

@Bhakti Kshirsagar The advice @Guifre Mora provided is great. In addition to that, I would suggest you meet/network with other Canadians who invest in the US. Get their experiences. In addition, I would suggest you talk to a US-CAD lawyer and Accountant.  Lastly, I would suggest you buy a place locally 1st. You might not like being a landlord or being in real-estate. When you invest in the US remotely, you are trusting people to manage it for you. If you lack the experience of managing your own place, you won't know what level of professionalism to expect and how to deal with matters when they go badly. Good Luck

@Trevor Hough Many of the A lenders will consider your LofC fully maxed at the rates when you apply for a mortgage even if you are not using it. Thus it will affect your. Your $50K unsecured LofC will be used as part of your ratios. So it is not a good idea. If you need funds for a reno, you can buy a property and get a reno JV or private money for the reno. You can also get a mortgage what comes with a reno/construction portion. Keep in mind unsecured LofC are at prime plus 4-7%. If you calcs are wrong on the reno, you will lose more money then you anticipated. Good luck.

Hi All. Has anyone had any dealings with the above. They are based in Toronto. I am asking because 1 of my tenants got approved for this. Is there any risk on my part? 

@Sheldon Duvall You are correct, inspection cost will add up. You can build this into the deal so you recover it but it makes you less competitive and you leave too much on the table. Also, there is a limitation to the warranty. One suggestion would be for you to learn how to inspect homes yourself. You can take the course on this, get the credentials, offer the service on the side and use the skills for your wholesaling/flips. When I started out, I would shadow the inspectors I hired for my deals, and after a few, I learned what to look for so I was able to do 25-40% of the inspection myself while at the open house/walk through before hiring a real inspector and making an offer. Good luck   

$15K d/p is possible but not in Toronto, Ontario. Average price in Toronto is $750K, so even as a 1st time home buyer putting 5% down payment (which will be increased to 10% with CMHC rules) you would need $37K. There are cities you can buy an investment property using $15K down payment. The lpro about using $15K is that it is only $15K. The entry point is low. The con is you will probably get a class B or C property in a city that you are not in, thus having to hire to property management firm. If you have $15K, you might want to use part of that in educational course that teach/coach you on how to do BRRRR, MFU, etc.

@David S. If you have the cash but not the time, then private lending may be the way to go. You can partner up with mortgage agents and other private lenders to lend out funds. You won't get the equity growth or mortgage paydown, but you will get the cashflow. There are JV opportunities too where you are the money partner.

@Warren Lee what % is the mixed usage?