All Forum Posts by: Luc Boiron
Luc Boiron has started 20 posts and replied 540 times.
Post: Does the BRRRR method work in the Canadian market?

- Specialist
- Toronto, Ontario
- Posts 564
- Votes 425
I don't see why it wouldn't work in Canada. It would likely be more difficult though.
Part of it is that it seems our appraisers work differently here - they're very likely to come in at purchase price if they are appraising for a purchase, but are likely to be more cautious and appraise lower for a refinance where they do not have a sale price to go off of.
Also, speak to a mortgage broker about when you can refinance - lenders won't refinance out more for you to take money out to invest. You might be able to if you are changing lenders and trying to get a better rate. I know there are some reasons you are allowed to refinance and take money out, such as paying off other debt, renovations, etc. It is also possible you will only be about to refinance to 75% LTV.
All that being said, I don't see why you can't BRRRR in Windsor, Toronto or the GTA. The key would be to get a very good deal though - like buying a property for $100k, putting $100k into the reno, and having a property worth $300k. When you get a really good deal, it works.
Post: Legal Duplex conversion in Hamilton Ontario

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- Toronto, Ontario
- Posts 564
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Originally posted by @Ryan Kirk:
Thanks for the excellent & informative reply Luc Boiron !
I will definitely call the city to ask about specific properties before I put an offer in.
How long did the process take? (How much extra time did legalization take as opposed to a regular Reno without permits?)
How much did the permits cost? And how does the bank view the conversion...have you refinanced?
Thanks again for all your help!
Ryan,
My situation was more complicated because of the refusal of the minor variance. Instead of leaving it empty, I rented out the whole house. After the OMB decision allowed us to move forward, we applied for permits before getting the basement vacant.
If I remember correctly (I believe this was in 2012-2013), it was a two stage application, first to zoning to ensure it was allowed, then to building. It was approved quickly though - I think they have a policy of doing so within a couple weeks. Not sure about Hamilton though, but it shouldn't take too long.
Essentially, it takes as long as doing the work with permits if it was a regular renovation. The approval is pretty quick, and the inspector will need to come several times at different points to inspect different parts. Sometimes this slows you down, as it could take a couple days for the inspector to come, and you might not be able to drywall something in in the meantime. The reno probably took a 3 months, but it was often only one person there working, and I wasn't as good at managing reno's as I am now. I also mostly gutted the basement. It was aluminium wires, which we left upstairs, and pulled out in the basement to do all new copper. I also separated the hydro on two meters, and charged hydro back to the tenants.
Also, since I was on title for the property, Orillia allows owners to draw their own plans for permits, so I drew plans to scale. Saved me a bit on a architectural designer. Not sure if Hamilton allows it. Orillia is a bit of a smaller town so they were quite nice about it, and helped me out if something was a little off.
Permits were not very expensive -sorry I can't remember exactly. I know that I did need to pay a parkland fee of $750, and there were some application fees. I think permits were around $1,000, but there may have been an application fee to allow the duplex.
As for the refinance, a bank usually wouldn't take into account income from an illegal unit, but once it is a legal duplex, they will accept that income. As for the amount, they go based on the appraisal. I can't say I was happy with the new appraisal value, it only added a little more to the property than we put into it. It was nicer than any other duplexes that had sold though, so there wasn't great comps. The bank was willing to finance up to 75% of the new appraised value.
Post: Aluminum Wiring - NewBie mistake

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- Toronto, Ontario
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@Irfan Saeed you don't need to rewire, but I would take care of it.
You can't connect copper wire to aluminium directly. Home depot sells a special paste and special wire connectors, which allow you to join the copper and aluminium. As for the plugs, at least where I am, you can "pigtail" - essentially, join the aluminium wire to a short piece of copper wire in each outlet box using the special wire connectors and paste, then connect that short copper wire to your plug.
You don't need to open any drywall or tear anything out to do this. Everything can be accessed by removing the light fixtures and opening up the plugs.
Also, an electrician can service your panel - essentially, they put some of the special paste on the ends of each aluminium wire in the panel. Aluminium can get brittle and crack with age, this extends the life.
Post: Vinyl Plank Flooring for Flips?

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- Toronto, Ontario
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I have put the Vinyl plank flooring into two basements of houses I am flipping, since basements tend to be a little more humid and can damage other flooring. I only use it in basements though, and use a bamboo engineered flooring in the rest of the house.
Post: Who's pay's $1,300 for rent?

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- Toronto, Ontario
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In my city, $1,300 doesn't get you a bachelor apartment in the core. It would still make sense to rent there, as a 400sqft apartment that rents for $1,400 sells for $300,000+.
Post: Legal Duplex conversion in Hamilton Ontario

- Specialist
- Toronto, Ontario
- Posts 564
- Votes 425
@Ryan Kirk I converted a property to a legal duplex in Orillia.
Each municipality will have different regulations. You will have 3 main things to worry about: Zoning by-laws, Fire code, building code.
Zoning by-laws: This can be one of the trickiest parts. You can check the zoning by-law with the city, and see what is allowed within which zoning. Not every zoning allows duplexes, and the lot size and other requirements may be different. What would work in one area of a city may not work in another area with a different zoning. 36' for parking, for example, may not be enough, because some zones may say that lots up to 40' wide can only have 20' of driveway. You'll need to pull up the zoning maps and by-laws and check out the areas where there are properties you are interested in. If you have a property you are very interested in, feel free to call the city planning department and speak to a planner. They'll usually give their opinion on it and tell you what to look out for.
Fire Code: Things like egress windows (opening of approximately 4 sqft at least, enough room to climb out of), 5/8" fire rated drywall on ceilings, etc. For noise, I had put sound proof insulation between the joists, then hung the drywall on resilient channel which reduces thumping noises. You'll also need to fire proof both sides of the furnace room. In my case, I fire rated the wall with 5/8", and the inside was too complicated to drywall in with all the pipes, so we put in two sprinkler heads.
Building code: Standard building code requirements. A bedroom will need a minimum amount of window glass area (when you are converting an existing basement, it's half the requirement of a new build which is nice).
In the Orillia property, we had a few hurdles. I actually got refused by the committee of adjustment (the lot was a little bit not wide enough, and I needed a minor variance. The elderly neighbours came and complained about more people, so I was refused.) I ended up winning at the OMB. Also, there were some minor things that came up during the conversion, such as needing the sprinklers in the furnace room. The inspector was good to work with, and pointed out what he wanted to see. It all worked out, and that's the key. Don't wait for the absolute perfect property. Find a good one, then get it done, and you will find a way while doing it.
Good luck.
Post: House flipping in Canada

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- Toronto, Ontario
- Posts 564
- Votes 425
@Kenneth Noronha Flipping is definitely possible in Ontario, but not necessarily easy. I flip houses full time in the GTA.
A renovation for most flips takes a lot more capital than a rental, you just don't tie up your money as long. In both rentals and flips, you really do want to finish the renovations and either rent or sell as soon as possible, as carrying costs cut into profits.
Either way, good luck, and feel free to contact me if you have any questions or want to chat.
Post: Canadian Housing Bubble

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- Toronto, Ontario
- Posts 564
- Votes 425
@Mike Lamch It is very hard to know if or when a correction might occur.
I personally believe it is better to get in the market now anyways, but buy for cash flow and for the long term, which will help protect you in case the market does have a significant correction.
Post: Too Paranoid? Security cameras for contractors

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- Toronto, Ontario
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@KJ D'Costa I have thought of setting up cameras at some properties I am renovating. It wouldn't be to monitor the contractors, but it could help to keep an eye on progress and possibly not need to go to the site as often.
I was thinking of doing it to keep the site safer. These projects are usually vacant, I was thinking that a visible camera could be mounted outside and another inside. This might keep potential thieves away from the properties, which would help keep my property and materials safe, as well as the contractors tools. One issue I had with this is that I would need to connect the cameras to the internet, which I have not set up on the properties, and I'm not sure if it's worth doing.
Post: No money down on a flip!

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- Toronto, Ontario
- Posts 564
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I've been reading a lot of posts on BP, and it suddenly clicked that a deal I recently put together was done with NO money down!
One of my best friends was moving out of the country to study in Asia. He has a few properties here, and we have invested together on rentals in the past, so there is a lot of trust between us.
He wasn't sure whether to keep it rented out or to sell it, and told me that he was going to list it, and if it sold for the right price, he would sell. The right price for him was too high for me. However, we were chatting about my flips and I mentioned to him that one of the "tools" in my toolbox would be to ask a seller to hold onto the property until it is renovated, and then sell it for me. This would seriously cut down on the significant transfer costs we have here, such as legal fees, land transfer tax, mortgage discharge and interest/fees to private lenders.
I mentioned how I could make it a win/win by not needing to pay these fees and getting a little bit of a lower price than the full retail, and how the seller would get a little bit lower than retail but save more than that on Realtor commissions, so they would also come out ahead. My friend asked me "Are you interested in doing this with my property?".
After running the numbers, we agreed on a price. This property is in Toronto, Ontario, Canada.
We drew up a contract, and I took over the payments on the HOA fees, his mortgage, and utilities.
I now own the rights to the property, and didn't need to put a penny down. I now just need to fund the renovation, sell it, and should make a small profit. On top of that, I was able to help a good friend!
So there it is! I used to struggle with telling friends and acquaintances that I was flipping, but I try to make sure to get the word out there. You never know where your next deal will come from!
And now everyone - get out there and find another deal!