All Forum Posts by: John Pfeifer

What I should add is I have 2 other duplexes where I live in one unit in one.

Self managing and renovating for the last 5 years

So I’m not making the jump from a dud condo to an apartment building. Haha

Wow. Overwhelmed with the BP community and all of the suggestions. Everyone is great! And thank you for the input.

To answer a few questions. I live in Canada and our mortgage rules are a little different. For those that don’t know our mortgages are typically 5 years not the 25-30 in the U.S. So we are forced to refinance sooner which can be a blessing or a curse. We also have fixed and variable rates.

Variable rates change slightly with the Bank of Canada prime lending rate but are typically slightly lower than a fixed rate.

Fixed rates come with massive penalties to refinance early, especially if early in a signing. I’m talking 20k + penalty on a mortgage that would generate 30k interest over 5 years.

Anyways to my situation I’m in a variable so my cost to refinance would be minor but I’m already at a rate that may get me 0.2 of a percent better on a refinance.

So I’m beginning to think that my only options remaining are to sell at a loss or try and get a seller finance deal. Which may be especially difficult as interest rates in my area are hovering around 2%.

I would use the money pulled from this property as a emergency/maintenance fund in a small apartment building which would be purchased using OPM. Which is my current project I have been working on for the last 2 months.

Does that change people’s opinions?

Thanks again for all the support and info everyone.

@Ryan Clark.

Oops hit post to soon.

I’ll have to look into the numbers with refinancing a bit more.

@Ryan Clark. Thanks Ryan

@John K. Hi John. Thanks for the input. Option 2 will definitely not work. Condo market here is over saturated.

But option 1 may be able to work. Do you have any links or resources that I could look into for setting up a owner finance. It may be tough as the condo isn’t anything special but it may be appealing to a small group of people.

@Justin Voegele. Hey Justin.

I would walk away with around 30k all things depending. The city is growing and vacancy rates are low. 4%ish. Problem is that a few big builders are still building new condos and then renting and managing themselves. So the condo market isn’t shrinking.

Rent rates are also staying flat whereas utilities are still climbing.

@Kenneth Garrett. Thanks Kenneth

@Joe Villeneuve. Thanks Joe. That’s exactly what my game plan would be.

@Jaysen Medhurst. Thanks for the advice Jaysen

Hey everyone. Love the BiggerPockets community and looking for advice with a negative cash flowing rental.

I’ll get right too it:

I bought a condo for a place to live and received a new home buyer grant.

200k - 10k grant. Paid 190k

Lived in for 3 years and then started to rent.

I’ve now been renting it for 5 years.

After rent covers mortgage but not icy else. I’m basically out $150 a month not including any potential repairs.

So over the year I get 5500 towards mortgage for roughly 2000 in expenses.

During this time condo construction went crazy in the city another 6000 units in a city of 260k people...

Condo market has now tanked and not going to bounce back anytime soon.

Looked into selling the condo and I could get 160-170k with 135k remaining on mortgage.

Basically do I cut my losses sell and take that 30k or take my small equity each year?