All Forum Posts by: Roy N.

David,

Over the years, I've sold one, had one "stolen", still have one (12 years old), and have just started another. They do have long hours and low pay when you are getting them off the ground, but if you are still toiling for existence 10-yrs in, there is a problem with your model.

I grew-up in a family business ... it's just second nature.

David Krulac

This announcement really comes as little surprise and I do not think it means "investing" in real estate is a waste of time ... 'speculating' over the long term ... perhaps.

I see it as a reenforcement of why I evaluate properties based on their cash flow and model them using either a flat price or slight depreciation {inflation adjusted}.

After all, you wouldn't buy a business on the expectation you will sell it for more 10 - 20 years down the road. You would expect it to be cash-flow positive and make a certain return.

@Dan Costantino

Here we use a standard lease (Government supplied) and then add our own schedules { NB Standard Lease (Form 6) }. This document lists the owner as the owner/landlord and has a section to be completed for an "agent" {i.e. property manager} acting on behalf of the owner.

Stephen Anthony:

If the architect/builders were thinking serviceability, then there will be plumbing runs within the building - risers between the floors and horizontal runs between floors. There may also be a service channel under the slab which may allow new pipes to be run without breaking the slab. This would make replacing your supply side - and waste water - a little less painful.

As Joel Owens indicated, I would plan on the main being galvanized steel to the street (the City/Municipal water & sewer department may be able to confirm) and price accordingly.

I would also verify it the waste lines are cast iron (or something else like copper) within the building (or have they been replaced with PVC/ABS over the years) and whether the sewer main is cast iron, or clay, to the street.

If you are looking at breaking ground to the street and replacing the supply side, I would also budget/price to replace the waste side at the same time.

John Berg:

In some jurisdictions if it is revealed you did not pull permits {which will happen as it is part of your disclosure as a "professional"} an annotation will be placed on the title of the property and title will not be transferrable until any missed permits and inspections have been addressed .... even if that means reopening your walls because you missed your rough-in inspections.

Nicolaas W.

A {du, tri, quadra}plex could have many/most/all of the benefits of a SFR. Around here, many old Second Empire, Georgian, and Victoria era homes which were originally constructed to hold an entire extended family - plus, at times, nannys and maids - have been carved into multi-units Triplexes are the most common ... one apartment per floor of the old house. The building still sits on a large lot, with backyard, etc. and, from the outside looks like a large SFR.

The advantage of a *plex over having roomers/boarders in a SFR, from my perspective, is you still have others helping pay the mortgage, but you do not have to share a kitchen/ bathroom and can maintain your {and their} privacy.

The building you describe of your friends parents: main house with 3-4 apartments in the back part of the house or in a separate building (perhaps a converted carriage house), is very much like what I describe above. This would be a tri/quadra-plex.

Also, by boarder I was referring to someone to whom you rent a room as opposed to a tenant who is someone to which you lease a property (or portion of the property). In most jurisdictions, there is a legal distinction between a boarder/roomer and a tenant and quite often different rights and obligation on part of both the boarder/tenant and landlord.

Nicolaas W.

Rather than purchase a SFR and have boarders, have you considered looking for a duplex, triplex, or quadraplex and live in one unit while renting out the others?

Valerie Lam:

The short answer is, "Yes".

It will impact your taxes in a manner similar to providing any other good or service in the U.S.A. from Canada.

This question came up about a month ago, you can read that thread here: Canadians Wholesaling in the US

Ben Durtschi:
In our market, 2-bdrm houses are harder to sell. Not big enough for a family. They are the right size for empty nesters / retirees, but come with all the maintenance and bother of a house (as opposed to a condo).

Jeff Kehl:
As a student rental, 2-bdrm houses do not cash-flow well ... at least not here.

... now, if you can find a 2-bdrm house with an "extra" space - 3rd floor loft, second den, etc - that could be turned into at third bedroom ... well, then you might have something.

Amie D.

I do not know what kind of relationship you have with various flooring providers, but for small bathrooms, closets, etc. my principal flooring provider typically has linoleum "ends" from commercial installations. The original customer has already paid for the material, so I will often get small (6-8 x 10) pieces for free ... or maybe $20. These are high-end commercial linoleum which would normally sell for $75 - $100 yd^2 ... and since the original customers are frequently hospitals, medical clinics, day cares, retirement homes, the linoleum tends to be more "fun" than the hordes of vinyl sheet that tries to look like stone, wood, something-else.