All Forum Posts by: Stephen Leblanc

I'm new to the 50% rule myself so someone can correct me if I'm wrong. The 50% rule is more than just fixing taps that leak and drafty windows. It takes into account vacancy, a tenant that goes ape **** in your house and destroys everything, insurance and taxes. This stuff goes with any house, not just an old house.

steve

Since I live in canada, I was told to leave the rentals in my personal name until they became profitable. The rental loss offsets your personal income tax.

in canada you write the cheque to "coldwell banker in trust" for example. They deposit the cheque into an 'in trust' account for you. If the deal falls through they give you the money back.

thanks for the info. I didn't mean to suggest the realtor was pushing bad deals on me. In fact the the 4 unit building and the 3 unit building, he told me to stay away from because they wouldn't cash flow enough.

I am using this realtor because a couple months ago he let me sit down with him for a couple of hours to talk about his rental company and how he runs it. I thought that that was good of him so I'm going to return the favour by buying any rentals off him. At least the ones I find on the MLS.

I currently have 3 rentals, all SFH. I know a real estate agent who also has rentals and he suggested that my next purchase should be a 4 unit building. The problem is that when I look at the MLS for my city there is only one 4 unit building for sale and one 3 unit building. Neither one of them fit the 2% and 50% rule to cash flow. When I spoke to the agent he said many of the good building that cash flow are sold to friends and family and never make it to the MLS. I let some people know, who own rentals, that if they wanted to sell or knew anyone who wanted to sell a rental to let me know. My question is, should I be patient and wait for a 4 unit building to go for sale or should I buy 2unit building that fits the 2% and 50% rule.

Thanks Steve

Ok, here is my situation. I own a duplex, the 2 units are side by side and each have there own dead. The units are exactly the same in layout. One side is in good condition and rents for 600 per month with nothing else included. The question I have is for the other unit. When I bought it, it needed all new carpet and the bathroom needed a bit of an upgrade. The tenant that lives there now, moved into the unit in this condition and it doesn't bother him in the least. He said the old shag carpet doesn't bother him. He has lived there for the last 7 years. He pays 500 per month nothing included. Should I raise the rent to match the fair market value of the property or should I be happy to have a person paying off my mtg for me. If I raise the rent, he may move and I would have to put $3-4000 into the place to re-rent it at the 600 level. Should I leave things the way they are? He is a quiet tenant buy not very clean. That didn't bother me so much because the carpet was old to begin with. He is one of those people with 4 TV’s in the living room because they were free. Kind of a pack rat, but not punching holes in the wall or anything.

Sorry for the rant, and thanks for the help

Steve

does the 30% equity come from the down payment or do you buy them under priced.

I'm so happy I found this place. I have a lot of question and no one I know is doing what I am doing, so its great to be able to bounce questions off you folks.

stephen

So, is it better to always have a mtg on the property. If a building is half paid off, should I re-mtg and take the equity out for a new property and stretch the new mtg out to 25 years again.

I would think most of you guys get mtg for you rental properties, so my question is...how long to you take your mtg out for. Do you drag it out for 25 years to increase your monthly cash flow with little pmt on the balance. Or do you take it out for 10-15 years paying off the mtg more quickly but reducing your monthly cash flow. Or does it depend on your situation and what you need out of the property. My goal is to retire early and I am in my late 20s.