All Forum Posts by: Peter Michael

Here's to 100 more! Congratulations, I hope to pull the trigger soon too!

It seems like cash flow is your primary focus, if you're willing to forego some advantages of real estate such as appreciation, I recommend taking a look at note investing. FCIexchange is a marketplace for notes that appears pretty simple. I'm still new so take evrything with a grain of salt haha!

But overall it's as Jay said, there are many options.

I'm still really new, but I'm not a fan of this option because of the lack of control. I firmly believe having control over your investments offers greater potential to grow and expand. 

Here's what I would do with a 1031. I would try and get a multi-unit property, although I'm not a US investor so correct me if I'm wrong, but by leveraging it as a 20% down payment, you're able to get a 4 or 5 unit property, which, with the right property, could be a cash flow BEAST, but I would be sure to factor in everything conservatively and definitely keep property management in mind. 

I hope this helped, it's just my two cents and I wish you luck!

Peter

Hey Blake, 

I'm a complete and total newbie, but a book that has helped take steps towards my own financial freedom and helped me decide to commit to it is Grant Cardone's 10X Rule. GC was on the BP podcast and owns hundreds of millions of dollars worth of real estate.

In and of itself, the book's not about real estate, it's more so about mindset and motivation, but it changed my life and it might change yours.

Peter

After doing some more research, I've opted against it, the population has been dwindling, and it seems like it'll stagnate or lose value. Thanks for the feedback!

Thanks for all the info Guillaume and Chris, I'm meeting with a mortgage representative at my RBC branch. I'm getting the last few expenses sorted out. As for the property manager, there are a few established companies in the area that can manage it should my current plan fail. As for exit strategies, if it fails as a rental, selling will definitely be hard. Ideally I could run it as a vacation rental, should that not work I believe I'll have to sell it. 

I'm looking into it some more,  I'll have an inspection going as well if I decide that it checks out. In addition, something I omitted to state is that the total municipal valuation is just over $70,000. Thanks again for all the info, I definitely have to be skeptical. I'll keep you posted.

Hey everyone! Sorry in advance if this is not the right place to ask for help and external opinions... But I've got a deal that I'm this close to buying, but I'm still worried that it may be too good to be true. Here's some info, I would greatly appreciate all the opinions you experienced folks can give me! One more thing... Sorry for the photos, these are the only ones the Realtor's got posted...

First off, I would be investing long-distance, I'm from Montreal, and the property is located in Baie Trinite, in Manicouagan. It's a relatively small coastal village with a population just over 400. It would be near impossible for me to visit the property on my own. 

Secondly, the purchase price is $52,500 CAD. There are 5 units, Three 4 1/2 units and two 3 1/2 units. Two of the 4 1/2's are currently rented for $525 a month, the other 4 1/2 is rented for $460 a month, one 3 1/2 is rented at $425 a month, and the last 3 1/2 is, according to the owner, only rented for 8 weeks totaling $1,200 of yearly income from it. 

Of course, I did my own analysis and I just wanted some opinions here, the net operating income I've got here (with a conservative $23,000 of gross yearly income, which is theoretically supposed to be over $24,000) is about $5,410. 

After a mortgage with a 20% down payment (10,500) and an estimated $2,000 of closing costs and legal fees (resulting in a $12,500 total down expenditure), net income would total just over $3,000 a year. Resulting in a COC ROI of about 24.5%.

Property management is taken care of, the realtor's helping me out with that. 

So is there anything I'm missing here? I've never purchased real estate before but I'm taking serious steps and I need to make a concrete decision soon... Any constructive feedback is appreciated! 

Thank you,

Peter

Hey everyone!

My name's Peter, I'm an eighteen year old student from Montreal, and I've recently been introduced to this whole rental property world, I've been doing a lot of research and I've developed a huge fascination with this topic! I've fallen in love with the wealth of information (pun intended) I found on here, and hopefully I can meet some people with similar interests that I can help, and that can help me!

In the long term, my goals are to retire at a relatively early age, original right? But more than that I want to be able to be financially independent and scale up my real estate business to have enough capital to maybe start some businesses I'm passionate about, who knows where the world will take me right?

Looking forward to the future,

Peter