All Forum Posts by: James Ma

Well technically if there is no paperwork then they're not tenants and you should be able to evict them or charge them with trespassing

There's a lot of good books out there on the rental process for landlord end to end.

The steps you'd do is:

1) Post rental ads

2) Screen tenants and line up viewing to show the suite. Have them fill out an application if interested

3) Followup on references, do credit check

4) Let tenant know you've selected them and sign leasing papers

5) collect deposits and first month rent 

6) Meet with them to do move-in inspection and any other paperwork required

7) give them the keys

I find selecting a tenant to be the most stressful part of the real estate process but trust your gut and your instincts and you'll probably do great. Most tenants are good people and not out to scam you

Have you tried borrowing a little from friends and family or finding a partner? As Nathan mentioned, you'll want more than just enough to close as there are always unexpected costs and you want to keep a float fund for vacancies.

I read an article on that today. Sounds like people are already pricing properties a lot higher to meet anticipation and properties are going into multiples.

Feels like a higher risk - reward type of investment as the rents and values had dropped significantly after the last big project there

I wouldnt celebrate market losses as they tend to be tied to RE. Wont be as big a drop if markets dip but it will be impacted.

@Thomas S. That's a mindset I know the older generation has and something my father preaches as well - "work is not meant to be enjoyed". In my opinion, find that's a sad way to look at life considering we spend a large majority of our time working. Why do something that you do not enjoy and have to grind through the day. I'd much rather make a little less money and do something that I find enjoyable, fulfilling, less stressful and better for my overall health. You only get one life to live, so make the most of it.

I heard about a nurse who works with terminally ill patients and she liked asking them about their life experiences and regrets to learn from their wisdom and thoughts on what really matters in the end. The number one response she got from people on their deathbed was they wished they had worked less and pursued their passions and dreams, spending more time with family and friends, doing things that made them happy.

@Nick Gray On to your original question, I'd look for any job related to real estate that you'd enjoy and meets your salary requirements. A lot of trades have sales relating to the real estate industry. One of my previous roles was working for a major Telco and doing partnerships/sales with landlords, stratas and PM companies. It was a great way to build a lot of connections and also went to tradeshows where I met a lot of trade companies, RE lawyers, etc. 

A similar role with the Telco was to work with the developers of commercial and residential buildings...

I think being a realtor would be a pretty helpful gig too as you'll have a constant pulse on the market and get the inside scoop on developments.

Hi Joshua, thanks for your service.

For buy and holds:

I'd recommend building a spreadsheet so you can easily plug in numbers to see the ROI - with google you should be able to find some.

The spreadsheet should allow you to plug in rental income minus all costs associated (x% vacancy rate, make ready costs, property tax, mortgage payments, ownership fees, $50-75/mo reserve fund, insurance etc.) to measure cashflow or your net operating income.

The ROI should also take into account an estimated appreciation in both rent and property value each year.

I just plug in the purchase price, estimated rent / property tax / ownership fees each month and can instantly see the return on my money which allows me to quickly size up different properties' return rates.

For flips:

The numbers are going to be less about rental income and more about properly being able to estimate contractor / repair costs & what the finished property will sell for. You'll still take into account the costs above but only for the estimated time you'll need to hold the property before being able to sell. Make sure to factor in selling costs into the equation.

Hi Brian,

I'd ask for evidence of tenant paying on time each month (bank statements, e-transfers, etc.) and speak to a tenant before purchasing a place with an inherited tenant unless the offer price was a really good one.

Talking to the owner about the tenant, its possible they hide anything bad about the tenant especially if they're a non-paying one.

You would be owed rent from the day you took possession of the property.

Sounds like its time for an oven replacement pretty soon - if you value the tenant, I would make the replacement for her

I don't think it was a scam since she said she would just absorb all the costs. A scammer would jump on any money at all and take the $800 you offered.

I ran into a similar issue with a PM company before too. I have a smoke detector in my condo and I've changed it before quite easily myself and its just a battery replacement for $5 or so. When I moved away and rented my condo out, the PM said that she had took action to replace the battery as my tenants complained that it was beeping and low on batteries. Sounded good until she sent me a bill for $200. I complained about how unreasonable the charge was - even if someone had to show up to replace the battery maybe it would be $50 for their time. They quickly said they would absorb half the cost and only charge me $100. I got rid of them soon after.