All Forum Posts by: Jon Kepler

@Samson Tse, did you find something else in Windsor? If not, maybe it's time to follow up on this property again. It's now one year later; I'm curious to know if it ever sold.

Hi @Brian Hosier. I understand that you posted this a while ago. Perhaps I can help - I am one of Owen Sound's largest real estate investors. Generally speaking, your cost estimate seems reasonable. How many square feet are you looking to build?

@Matt Geerts, are you looking to do this in London? My investments are not in London, but I spend a fair amount of time there each month, so I know the town.

I talked to an informed City employee a couple of years ago, and at the time, they said developers were putting up houses with as little as $7000 in profit. That is a *really* slim profit margin, and if this is still the case, I think your construction costs may be a problem.

@Conor Williams, I invest in Owen Sound and I regularly find properties that meet my cap rate requirements. If you can't find what you are looking for in Kitchener/Waterloo, you may have to look a little farther away. However, properties are definitely out there.

Hi @Kelly N. I am in Canada, so my advice may not be 100% applicable. However, I have dealt with similar issues. It sounds like the seller is doing the best job he can, and as long at the tenants appear reasonably compliant (at the moment), that's probably all you can expect right now.

That said, if something does go wrong, I would make sure I have the documentation in place to pin it fully on the seller. At this point, can you delay closing for a few extra days? That way, you can ensure things are in order before the property is yours. I would talk to my lawyer about it.

@Stephen E., it sounds like you've done a great job so far. Your mileage may vary, but I've actually had pretty good experiences with the Landlord & Tenant Board. Because of this, I always brainstorm what would happen if I was dragged in front of the board to account for whatever issue I'm dealing with.

In this case, if you were standing before the adjudicator, they would likely ask the tenant to recount what they were told by the technician. They would ask the tenant if they experienced significant discomfort, or if they felt this issue meant they could not occupy their unit at certain times. The tenant would have to admit that you were on top of the problem, and that they were not negatively affected by the HVAC system. You relied on a professional's opinion, and there isn't much else that you can be expected to do. I think you are in the clear.

Thanks for the link. It's not a bad survey, but the answers are definitely geared for the general population rather than for people likely to be financial outperformers.

For example, a young adult should move back home after college in order to save for a house. My girlfriend and I did that, and it's a spectacular idea. This survey disagrees. In order to get rich, you have to beat your peers. Living rent/mortgage-free for a while is one of the best ways to do that.

@Samson Tse, I invest in Owen Sound, and I've always been fascinated by Windsor. As others have said, it sounds like this building has deferred maintenance. Even if it doesn't though, it can be tough to pay for repairs and upgrades on lower-priced buildings. I have one property where a bunch of new carpet can really stretch the budget. On my more expensive properties (with correspondingly higher rents), the carpet is the same price and its not a big deal.

I know you are concerned about cash flow, but don't forget that you are also paying off approximately $350/month in principal. I know it's not cash in your pocket, but the worst-case scenario is that you wind up debt-free in 20 years. Alternatively, you can refinance after a couple of years and pull it back out.

Hi @Kevin V. I am in Owen Sound, but interestingly, I was referred to my mortgage broker when I was looking at property in St. Thomas. I have worked with her for five years now, and we've done several different loans. I will send you a message with her contact information.

Congratulations @Justin H.! I use Kijiji to find tenants as well - it's probably the #1 tool for it, at least in Ontario. If you don't mind me asking, what lender did you use? Did they mind that it's a student house?