All Forum Posts by: Huong Luu

@Elizabeth Gregorio Yes, you can sell a property even if you have a tenant in it. If the buyer wants vacant possession then you have to file the proper paper work to evict. Or you can offer cash for keys. 

The other option may be to offer a RTO to the current tenants.

Or if you are able to pull out the equity (either though a refi or HELOC) then your can counter the negative cashflow with another higher return investment.

You mention condoS - how many units are you talking about? If you sell, will you qualify under the new rules to get new mortgages? Talk to a mortgage broker and sort this out before selling. Also sounds like setting some time aside to 'plan' out your strategy would be time well spent so you don't go down the SF path and realize in a few years that doesn't cashflow to your liking either. You might find you have enough to get a MF. Good luck. 

@Shiv Dutta This doesn't seem like a great deal: $52/d /m. The 74K/unit is good. Where is this opportunity? Seems very low/door. If the roof or the heating system needs repair you will have $0 cashflow for awhile. Is there a way to increase cashflow (ie laundry, charge for parking, reno and increase rent etc....)? Ask yourself: is the amount of headaches you will have worth $50/d? Can you negotiate a higher VTB, with balloon payment after 1 year or 2 and super low rate?

@Sienna Lu before you put your investment prop on the market, calculate what your costs are to sell (including penalty to break your mortgage, capital gains, realtor fees). Since you purchased last year, there wouldn't be much mortgage paydown. The other thing to keep in mind, is the new builds may get delayed, as many often do, thus that 1.5 year timeline you have could be 2 -2.5 years. Lastly, take everything you read with a grain of salt. Good luck.  

@Account Closed, It may be time to get some new friends. ahah. All kidding aside, you don't ask your dentist for mechanical advice. You do not need to have your 1st property as your primary residency. Your 1st property can be a rental (investment property). If you do this, keep in mind, you will not be able to use your RRSP Home Buyers Plan and most likely you will not be able to use the 5% down payment first time buyer to your advantage unless you have a creative mortgage agent helping you. As you live in Toronto, where the market doesn't really allow for cashflow purchases, many new/young investors buy outside of Toronto where the $/door is lower. Another option for you may be to house hack in Toronto. Buy a house and rent out rooms/portions of it. This is usually recommended for people who are not sure if a long career in real estate is something they want. Good luck. 

Message me directly, I have 2 recommendations. 

@Brandon Wood I would suggest you look into OPM and VTB (Other people's Money and Vender Take Back). Both of these will allow you to use a corp and little down payment. Good luck

@Braydn Tapscott As part of your refi calc, you should have known this would put you into a negative cash flow situation. The refi you took out is part of your calc, so it is not all negative (as you are making money off that refi - right?). Keep in mind your tenants are giving you mortgage paydown and depending on where the property is you are also getting appreciation. Making money in RE is only part of it. The journey of getting to financial wealth is a big part. I agree with the other advice - you are not a social worker and you should not be 'paying your tenants' to live there. However you are in the negative b/c you refi - refi income is taxed differently than regular income. This should go into your calculations too along with the capital gains you will have to pay. You can set a reminder to increase the rent to the max as often as you can. If you do not, then that is your own fault (no judgement there). If you sell to the developer, will you be able to buy/get a mortgage on another property? Does keeping this property hinder your goals in RE? Good luck. 

@Shiv Dutta If you only need private money for a few months, the lender may be okay with a promissory note. Otherwise if you register a 2nd mortgage, there will be legal fees. You could also do a RRSP mortgage but this would require a lawyer too. Keep in mind, renos usually take longer so if you plan for 3 months, make the loan for 6 months with no penalty for early payout. Usual there are higher fees for shorter loans. The other option is to use your credit card or if you have access to a HELOC. Good luck

@Ryan ManzielCongrads and love your question. That is how I got started in RE too. Here are my suggestions:

1. read up and understand the landlord and tenant rules, know the lease papers you need, etc (join local landlord networking groups)

2. learn how to screen tenants yourself (using your intuition and finding an efficient way to do it)

3. find out what your prepayments, double ups, annual increase, etcs are that you can take advantage of, and make sure your mortgage is linked to a HELOC

4. Treat your tenants like clients - they are paying your mortgage off. Buy them a small Christmas gift, move-in package, etc  

5. Learn about taxation - what % you can write off, etc and keep good records

6. Enjoy your new investment

@Account Closed You can get a realtor by asking your family and friends in Montreal for referrals, or find a property you like on realtor.ca and contact the listing agent. The process to buy is pretty much the same as any province/state. The 1 thing to check is the signing process. Before COVID, we had to physically be in Quebec to sign papers with the lawyers. They would not take affidavit or hold meetings on zoom. This may have changed since COVID. 

In terms on financing, if you are Canadian,  as long as you have a good credit score, ratios and proof of income, you should be able to qualify for a traditional mortgage using Canadian banks. You should not be treated as a foreign investor. 

Good luck