All Forum Posts by: Patrick Ladouceur

@John Koster, I completely agree and like they say in the podcast "never buy a bad deal". In the more expensive area I would still be looking for good cash flow properties. They are just few and far between. Although the quality of tenant would be alot better in the higher priced area. Whereas in the lower priced area I know the tenant quality isnt the greatest, so vacancy might be a big issue. I agree with your statement that we are approaching a market top. I also know that vacancy can be a killer in these deals. But since the lower priced area is more in my budget range. It might be the difference between investing in a few months or investing in a few years.

Hello, I am currently in the learning process of real estate investing. I have an idea of what I am doing and what to look for. I have decided between two areas. One area is an up and comming area with great appreciation, the city is always growing, a train has just been built, the salary is above average and the city is always growing in population. The only problem is to purchase a duplex or triplex you would be looking at 700 000$ or more. The rents are barely reaching the 1% rule. Area number 2, the one I am leaning towards, has a much smaller population (1/10) and the salary is under the average. There is no new construction and I would say that most of the houses in my price range are c properties in a c area. What's attractive about this area is that you can buy a 4-plex for 200 000$ and the rent is more like the 2% rule. Also this area would be netting around 200$ per door whereas area number one would be netting somewhere like 20 to 50 a door. My question is, is it a good idea to invest in a city where the appreciation and properties are not as good for cash flow?

@Yazan Ayyash, I am new to real estate, I also live in the Ottawa area, I am by no means a professional on the subject, but from the research I have done I have come up with some number on SFR's and Duplex's that come very close to what you are stating. I have even found a triplex that in theory should bring in 1200$ after expenses. My only problem is I havent found enough multi-family's in Ottawa to get a true feel for it. I feel like multi-family's in Ottawa are sparse, or maybe it is just my method of locating the deal.

@Todd Dexheimer, I was under the impression that you got taxed on what you grossed that year not what you netted. Being taxed on what you net alleviates alot of the worries I originally had. Thank you for that information, it was very helpful.

@Todd Dexheimer, No you are 100% right when discussing your income no one will use the after tax number. If you make 80,000$ a year, that is what you will state. But for example, if I made 80,000$ a year, but I also had let's say a mortgage payment of 60,000$ a year and a car payment of 20,000$.... you will be in debt beacause you've failed to account for the income tax. I just dont want to be caught thinking that I have found a good deal but in reality you're loosing money cause of expenses or costs that I failed to consider in my analysis

@Simcha Davidman, ok so if I am understanding this right, what you are saying is that the tax deductions associated with owning a rental property can off set for the most part the income taxes that you would pay for having rental income?

Hello, I am new to investing in real estate and currently in the analysis phase of investing. I live in Ontario Canada, I've found a triplex that I am interested in and I ran the numbers on what it would cost monthly and what kind of cash flow to expect. My question here is, why do I see everyone mention the property taxes as a monthly expense to take into consideration, but not the income taxes that you will get charged for receiving income from a rental property?