All Forum Posts by: Huong Luu

Some areas to look into: Welland, Pembrooke, Belleville, etc. There are areas you can get $600K range that require cosmetic updates. Keep in mind you should have 3% for closing in cash. If you are house hacking, you might want to think about buying a 3 bd house and renting out the rooms. Suggest you look into the RRSP and FTHS option. Also, since you are planning on living there, if you have a -$200/m (for example) it still maybe worth it, as your rent would be signigicantly higher, and now you have mortgage paydown as well. Good luck.
 

Besides the contractors, when you scale up, your processes and paperwork systems will be tested. If you don't have this set up, and your financial resources become tight, your contractor may stop work. Communications skills also pay a bigger part. Good luck 

Hi BP family. Wondering what others are doing to effectively pass their portfolio to the next generation, either currently held in personal name or corp. Considering reducing capital gains, probate duration. Is there another option besides IFS? Has anyone set up a family trust? 

Thanks in advance.  

@Fahim Ahmed

When you run your analysis, you have to consider which strategy you are doing ie brrrrr, flip etc. The expense ratio may be high, so as part of your analysis is finding ways to reduce the expenses like - can the hydro be put onto the tenant? If you are flipping, then you need to consider the forced appreciation (ARV). These rules need to have flexibility to account for tenant and area quality. In addition, some people when they analysis don't include 8% for vacancy, or 5% for capex, etc.

Good luck. 

@Scott Trench I took Don Campbells sheet and put it into an excel sheet. Happy to share that if you message me. 

@Benji Klassen If you are going to jump into RE investing, I would suggest you get comfortable with debt. This is GOOD debt, if you can leverage it to buy a more profitable property. I run into a lot of investors who are shy on taking on (good) debt, and then can't make deals happen because they are short on funds. 

You can use the HELOC as your reserve. Suggest you pay down the mortgages as much as possible and use the Smith Maneuver.

As well, CIBC and RBC are not accessible through regular mortgage brokers. You might want to try them out to compare HELOC limits.

Good luck  

 @Matt Bishop VTB means Vendor take back. This is the same as Seller Financing. Not sure if it is just a Canadian thing. 

@Chris Hamilton Before you find the leads, I would suggest you read up on the pro and con of VTB. And narrow down your search to investor own or non-investor owned homes as this will affect your presentation to them. Many investors will be willing to work with you on VTB. However if you find a non-investor owned property, be prepared to explain the pro and con of VTB to the seller and sometimes their agent.

In addition to the MLS, you can search Facebook, Kijiji and Craigslist. Also if you join the local networking groups, there will be deal sharing in those groups.

Good luck. 

@Mark L. Since this is the 1st time you are renting it out, I would suggest you use an agent for the 1st time to see their process and the forms they use. This will cost you about 1 months worth of rent but will be worth the education. You can also see how they advertise the unit. It's not hard to do.

In the lease you can add in a clause about noise, smoking (including cannabis). 

2nd on Berry McGuire for Alberta. I have also had good success with Larry Wells at Wells and Associate for Alberta. Which area of Alberta are you looking at as agent recommendation will vary.