All Forum Posts by: Account Closed

Look into attending as a guest a couple REIN meetings in Vancouver. They’re Canadian based.

Grab Don Campbell’s book Real Estate In Canada as well as his 97 Tips for Canadians book. Both available on Amazon. The two books will get you ahead of a significant number of keyboard commentators and you’ll meet some incredibly helpful members of REIN. I spent over a decade as a member there and hold a silver pin through them and only recently did I decide my membership money was better spent elsewhere. They’ve got some good resources and like I said, you’ll find the most value is in members helping members.

Good luck!

Sounds like you’re approaching it well already. I would most likely approach like this (if they’re great long term tenants so far):

Option 1: “get the puppy, I don’t ever allow animals under 1 year but let’s work together on this, I’ll require additional $ because of the increased damages young animals cause. This part is non negotiable”

Option 2: “adopt an animal over 1yr of age, we will do up another animal addendum and no additional charge will be needed.”

In either case, 1 visit per month for the first quarter the animal lives there. If it’s the puppy... make it monthly visits for 6m. Or leverage technology and every other month have them send you a quick video of the space to avoid the intrusion maybe.

@Ludmila M.

In the future, have them sign a pet agreement indicating a specific pet is approved at specific cost based off city license #. New pet, new license, new fees or else it doesn’t get approved. Pet agreement states no interchanging / replacing animals and that this individual animals approvals does not guarantee new animals being approved etc.

I also require a clear photo of the animal showing scale prior to move in.

Without reading the entire thread, I’ll say this sounds like a disaster. A threesome rarely ends up with everyone satisfied, let alone excited for the next one.

@Jim K.

I hear you Jim, gentrification doesn’t always fully take. And like weather, the further in advance the more inaccurate the prediction is. Local policy can change in a weekend, and when the money tap turns off for certain projects it can have a significant affect on transitional areas.

...If you follow your market closely, you know exactly where gentrification will happen. Timelines can be affected by local policy makers as can areas so its never a “set it and forget it” type plan, continue to monitor closely.

@Quentin Mitchell

I must’ve missed the mainly C part in a previous post. A genuine D class property will not have the building itself appreciate. The land maybe (or maybe not as you have identified), but not the building. You’re looking at a 50+ year old structure that’s already had deadbeats living in it for a couple decades at minimum and will be at least another decade (likely more) before the area is anything above a D. The same way as termites destroy a structure, so do hood rats. D class does not transition to B or higher in a 5 year window. Now, if you’re talking an already transitioning area (not D), maybe. Again, maybe not as you’ve identified. Further down the continuum you travel the more common tax depreciation techniques become accurate and eventually not even enough. Up here I’m allowed 4%/ year on a declining basis. D class tenants often do way more damage than 4% of asset value in a year. 4% can be a regular paycheck Friday for them.

@Bob Daniels

Nailed it Bob. I’m outsourcing writing to you next time.

@Quentin Mitchell

What I meant is, group a few doZen of them together that over a 5 year hold will cashflow $100 each monthly (round to $5,000) and then yes, you could use that to “live on”... but at the end of year 10 you’re left with an absolute garbage sfh that literally has zero value (physical buildings DEppreciate) and you’ve got some land value (land Appreciates)... so you may have paid $75k for both land and sfh to start, you ended up literally eating and paying for gas etc with all your “cashflow” and now in year 10 (or sooner for D class) you’ve got a knockdown little box, in the hood, beside 400 other little knockdown boxes...

Whereas buying in a B neighbourhood, the useful lifetime of the home if managed well will be (at minimum for a comparable asset) quadruple and you’re building genuine wealth instead of living paycheck to paycheck on monthly ”cashflow” from the hood rats.

You will never build genuine generational wealth on cashflow. You might live on it just fine, but that isn’t wealth any more than your day job paycheck is. By the time you’ve got our D class fully paid off it has nearly $0 value. Stuffing your kids stockings with the title to a $0 house likely isn’t your target

@Tom Shallcross

And there it is, a $75k home cash flowing at 2x doesn’t even come close to the same wealth generation. So, are you trying to build wealth or trying to create cashflow.

You can eat cashflow, and if/when you do your “wealth” goes straight to the toilet. Cashflow $5k monthly and spend $5k monthly and you’re in exactly the same position in 20 years except you MIGHT be left with an expense to plow over and a small asset of land. And for a legitimate D class property that 20 year timeline shrinks to 10 in a lot of cases... or even less