All Forum Posts by: Huong Luu

@Yi Hao LiaoIam sure you will find many sources saying don't bank on appreciation. Appreciation is 'desert'. Buy on cashflow. Use the calculators to help you determine if it cashflows. You shouldn't have to 'think' if it cashflows or not. The other thing to consider with pre-sale, is your are locking your deposits in from day 1, thus not making cash flow or interest. When you say the unit will be rented out by their PM, what fee flows back to you?

@Jonathan Taylor Smith no, it is not specific to Vancouver. That condo strategy can be done across Canada. 

@Frank Liuh I can share with you my experience getting city permits and modifying a 4plex to 5plex. Is your building zoned for 4 units? If not, you will have to get the city to approve this. If I assume your building is zoned for 4, then you will need to get engineering drawings. Calling electrical companies is easy. Just call and tell them what you want to do. They can usually give you a basic idea over the phone of very rough cost and the steps they do. If you want quotes, they will probably sent someone out. In my area, if I upgrade the electrical, then any 'grandfather' is out the window. So if your building is currently 'grandfather' you might want to double check the cost of updating all the electrical to code. Depending on the new layout, you might be able to do the reno with min distribution to half your tenants. If you need to have an empty building, then you should account for loss rent during the time of reno. Also keep in mind you will have  '5 sets of headaches'. Good luck. 

Other provinces allow dual presentation as well. 

If the agent is willing and able to do duel rep, they will disclose that to you. If an agent is doing duel rep, they will act on the sellers best interest, not yours. There are things you might tell your agent and they may or may not share it with the seller. However if it is the same person, they are obligated to tell the seller. Keep in mind, you and the seller can use 2 different agents but they are from the same firm. This to me a big of conflict as well. They spend time in the same spent, overhear conversations, etc. 

Your agent represents your interest. So get an agent that is not just a transactional agent.   

@Daniel B. You are going to want to verify all this with your accountant. What you are doing now and what you are proposal are not what I would recommend for cash damming. This is what I would suggest:

1. 1. Allocate a bank account from which to pay all expenses associated with the rentals. (done)
2. 2. Deposit all rents into that account and use it to pay rental expenses (done)
3. 3. At the end of the month withdraw whatever money was left over to bring my balance back down to $10k and use that to pay down my personal mortgage. Take this out and replace with paying yourself a set amount each month (ie$2K). This would be equiv to your property management fee (your pay) or some standard. Any money left over should either stay in your rental account or taken out to lower your LOC balance. 
4. Is there a reason you target $10K? 

No, the rental mortgage principal is not an expense so can't be claimed. I have not considered using the LOC to pay down the principal as the LOC is usually at a higher rate and does not allow for other investments. You are already claiming the interest portion from the mortgage payment, so not sure if using the LOC to reduce your mortgage is a good idea.

Hope this helps. Msg me if I can be of further help. Good luck.

Hi Fellow BP investors. I was able to negotiate a 5 bus conversion with a contractor. So now I am looking to rent out and/or off load 4 buses. These would be converted school bus or greyhounds, etc. I want to figure out a way to sell or keep them and cash flow. Is anyone else doing this strategy? Any suggestions on how to go about this? 

Some background on this: This follows the tiny house/minimalism live style. My plan is to take 1 and continue to travel full time across Canada and US. So the other 4 bus would be rented/sold.

Some ideas given to me:

1. was to rent them out during major events (ie Stampede) by parking them on people's parking lots (obtain their approval and pay them for the space) 

2. airbnb, team up with people with country lots and rent space from them 

Thanks in advance. 

Hi Fellow Female Investors. I am started investing in RE in 2nd year university and 20 years later, now have 16 doors (100%). I do mostly buy&hold, some RTO.

@Kam Lolavar You are facing what alot of my coaching clients face. This is what I tell them. Don't go with the crowd. Find another city that is not hot. You want to be in front of the curve, not in the middle or at the end. If everyone is buying there, then it means you shouldn't. Look elsewhere - Where do you think the next hot city will be?... That's where you should buy. Good luck. Message me if you want some suggestions. 

I found the book useful as it gave me ideas that I could use. Even though the content is US based, you can apply the general idea to Canada. With any book, report, program, if you walk away with 1 idea, then it was worth it. Even if the idea is "don't do that". Good luck.

@Kevan Davidson I would suggest you ALL sit down with a RE lawyer and talk about the corp structure. And sit down with a mortgage agent to get a better idea of how the mortgage industry works. The reason is if all of you are listed in the corp, all of you will need to guarantee the mortgage. This will hinder all of you later in terms of # of doors, and credit reports. It may be better to set up a holding company and then corps underneath with 1 property per person with the others as stakeholders. I agree with @Timothy VanWingerden, you all need to sit down and determine the end goal and exit strategies for all of you. Some may be happy being a silent partner. Some may be happy 'gifting' the money and making 12%.

I understand you want to include everyone, but it might not make sense to have so many people in when you are all just starting out. It is better to have someone who can run with this and show you all how to do. 

Using your RRSP FTHBP should not be taken lightly. It is only available once and then again if you don't own for 7 years. Also RRSP FTHBP can't be used for an investment property. 

Good luck

 Message me separately if you need a lawyer. 

@Scott Isbister No seasoning of rent requested before. If lease doc are not available, lenders will accept 'acknowledgement letter'. They may ask for the last rental income statement filed with CRA as proof.