All Forum Posts by: Mike Singh

Try Knightsbridge foreign exchange , if you need to convert cad to usd and send it to a US based bank account . There is no fee to send the money and their foreign exchange rate is pretty good compared to the major banks .

@Adam Krawec it's in the Carlton Park neighborhood in St Catharines . I didn't really see a lot of duplex comps for that area . My ARV was based on what similar houses with full renovations were going for in the neighborhood.

Looks like I'll have to continue searching for something where the numbers make more sense . 

Yikes , the formatting in my post got a bit messed up . Sorry about that everyone !!

Hello everyone , 

I'm currently looking to do my first BRRRR and wanted to get some thoughts on the following deal. The strategy will be a traditional BRRRR by converting a single family home (detached bungalow) into legal duplex conversion in St. Catharines . For anyone outside of Ontario , this is an upcoming city with a lot of potential and is about 1 1/2 hours away from Toronto .

• Purchase Price : $415 000
• Downpayment: 20% - $83 000
• Estimated Mortgage Payment- $1276 per a month 

For the renovations , I'm looking to do the following : new floors , upgrade kitchen , replace all interior doors , new furnace , create legal 2 bedroom basement unit (add extra hydrometer , add kitchen), add laundry on both floors .  I'm averaging that this will cost around $100 000. 

1. ARV based on surrounding area : $620 000
2. Mortgage after refinance : $1906 per month 
3. Rent 3 bedroom unit : $1600 + hydro
4. Rent 2 bedroom unit : $1300 + hydro
5. 3% Vacancy : $87 per month 
6. Property Tax : $329 per month 
7. Insurance : $115 per month
8. Property Management 8% : $232 per month 
9. Utilities (Gas , Water) : $150 per month
10. Cashflow yearly : -$72 per month
11. Cash left in BRRRR : $35775
    
    This property won't meet the 70% rule or 1% rule and the cashflow would be negative . Would love to get some feedback on this deal and find out if my numbers/ calculations make any sense . 
12. Also if anyone knows any great contractors in that area , feel free to reach out :) 
    
    

@Erik Ped Hey Erik , I've actually noticed this issue on a few other sites like bungol . I'm not sure why this is the case .

@Matt Camilliere #2 all the way , cashflow will always be there for you while appreciation is like betting on a roulette table .

@Stephen Leslie Hey Steve , I'm from Toronto looking to invest in the Southern Ontario region . Would love to connect

@Ann Shereck Hey Ann, it's going to be hard to find something in the GTA for that price range . My suggestion would be to decide what investment strategy you would like to do . Do you want to do a BRRRR , fix and flip , buy and hold etc ?

After deciding which strategy you are interested in , look at markets where you can apply the strategy and the numbers make sense . With 30 k , I would probably recommend looking at cities in Southern Ontario or Northern Ontario . Windsor and Chatham-Kent may be of interest to you :)

Vemmanath, its going to be hard to invest by yourself with 30 k especially with the current market . If you find the right deal , you could explore private lending to get the funds required to make it happen. I would probably recommend using that money to JV (joint venture) with someone that has experience so in that way you can learn the ropes while still making some return on your money .

With prices so high in the GTA, you should focus on cashflowing properties instead of appreciation . Find an area where the numbers make sense , you can find a cashflowing property in any market :)