All Forum Posts by: Thomas Lorini

Originally posted by @Account Closed:

Ron was the friendly canadian 

Steven I believe you were commenting to @Roy N and not Ron.  

Nonetheless, allow me to respond to some of your comments as I am coming from living in Canada my entire life to now residing in the US.

Property taxes are actually very similar most areas I invest are around 1% similar to California. Minus HOA and Mello-Roos which ive never encountered in Canada.

Income tax is relatively similar, others have commented in detail which i believe is very relevant.  Me being self employed on both sides of the border the taxes are similar, based on my situation of course.

I actually file taxes in both countries, although unlike the US, non resident Canadians are not required to, however I own several rental properties and must file income that these properties produce, albeit there are procedures that any experienced accountant can advise that you pay on net income and not gross, to minimize.

Saying this, being taxed in the US will be slightly lower for me, I can report back in a few weeks a more accurate comparable as I am in the process of doing my taxes.

Finally, I feel I should comment on the discussion on the CDN dollar which has dropped significantly since the start of this year....to me I am looking at this as an opportunity. I am actually adding the lower CDN dollar as a significant factor in my investment strategy.  Traditionally the CDN has been lower than the US around the $.85 mark. We reached parity about 2 years ago for a short period of time and remained just under parity until late last year.  So the opportunity for me is to earn US dollars and purchase sound CDN rental properties at a 20-25% discount.

Of course only if Im comparing apples to apples. 

This could be a unique model that not too many US investors are looking at...

Thoughts??

Originally posted by @Ming Lim:

Looks like a good deal Thomas and great for the GTA. It's getting harder to find cash flowing properties in the area.

I've also started to look at Hamilton because the rest of the GTA is just too expensive. But I'm wary about the tenant quality. I'd be curious to know how things go with your tenant search for you once you've completed the renos and are looking to rent out!

Good luck and great deal!

 Hi Ming, thanks for the reply. Hamilton is a great investment city but you really need to know the areas. Tenant profiles can range from A to D really quick.  I invest in the downtown West Harbour area which is really improving. If your planning to invest really do your research and really know how to screen people, if your not experienced at tenant finding please hire an expert.

Saying that I have some great tenants.

All the best,

Originally posted by @John D.:

@Andrey Y. 

I was just presented this opportunity.  Opportunity to purchase property for $550k.  Simultaneously, lease-option sale for $650k.  $100k lease option payment upfront, 2-year option period.  $4,000 lease payment ($1k going towards principal paydown) over the 2 years.

Pretty close to the $500k property renting for $5k per month we were discussing, given what the option payment does to the numbers.

I think I am going to pass, but LMK if you have interest.

@John D im curious to know if this is still available?

Hey @Rob Beland thanks for the feedback!

I use 8% as it represents 1 month (1/12) without rent.

Its a small 3 bedroom, 1 bathroom, 2 story unit that seems to have had some upgrade of electricals done but not all. 5 year average Appreciation in Hamilton is currently at 6.7%, plus as I mentioned the closes comp was over around 15k more than our purchase price.

Rent is regulated in the province so once I lock in a tenant only around 1.6% increase per year,

Again thanks for your input very much appreciate.

*A new chart I seen today:

City:

Hamilton (Ont.)

Average home price (2014):

$405,619

Average home price ratio to average rent (Price to rent ratio):

1.51

Time to buy in years:

4.4

Home sales to new listings:

73.8

1-year price appreciation:

6.0%

5-year price appreciation:

6.7%

10-year price appreciation:

7.0%

Average 5-year rent increase:

15%

Rental vacancy:

2.2%

Discretionary Income levels:

$44,812

Average GDP growth 2010 to 2014 (%):

2.1

Projected GDP growth for 2015/2016 (%):

2.5

Current Unemployment rate (2014) (%):

6.0

Previous year’s unemployment rate (2013) (%):

7.0

Greetings BP colleagues!

Being a new BP member I thought I would seek some INPUT/ADVICE from other members on a recent purchase I did....wish I was a member sooner to ask before I closed.

So I just closed on property (6) located in Hamilton, Ontario...yes its in Canada. 

Quick background, the city is rated Top 3-4 towns to invest in the ENTIRE country from reliable real estate networks.  The city is growing, jobs are increasing, vacancy rates are at historical low 2%, and  you can find actual cashflowing properties. I lived most of my life near Toronto which average homes have hit $1M. 

Breakdown of deal:

Listed at $139,000

Recent comps (similar home on same street) $151,000

Multiple offers over asking which I originally lost out on, that deal fell through and we got another opportunity and offered asking which they accepted.

After inspection we were able to knock off another 3k, so final purchase price $136,000.

Closing costs 2.1% (closed this month)

Reno's (which are in process approx. 2 weeks) 4k-6k depending on the extent of the electrical as it is an older home had some knob & tubing to remove.

Its a 3 bedroom, 1 bathroom freehold Semi located 100 yards from the General Hospital.

We should be getting rent of $1200/mth plus utilities.

Factoring in the following:

Taxes, insurance, PM 7%, Vacancy 8%, Repair&Maint 5%

Cashflow would be $303/mth.

I'm  think its a pretty good deal, as there are not many properties listed below 150k in the entire city. 

What are your thoughts or input?

[This is a long term buy and hold]

Need more info...

Has your client moved to the US?

What is his current status?

If he is still considered a Canadian permanent resident and has decent credit in Canada he could potentially get Canadian financing. I know of many Canadians who get financing for Florida properties.

If he is a permanent resident of the US then he is out of luck, he will need to build up his US credit and file US taxes bare minimum 1 year prefer 2 years.

Hope this helps.

@Karl Krentzel appreciate what you shared.

Please add me to your list. I would like to attend your next Meetup.

Thanks

Thomas

@Jynell Berkshire as I mentioned, I'm from Toronto Canada so I'm all too familiar with inches and inces of snow!!! Thank you for offering your help much appreciated.

@Kimberly Beckwith thank you, all the best to your portfolio as well!

@James Ross thank you I will surely be in touch!