All Forum Posts by: Filipe Matos
Filipe Matos has started 9 posts and replied 113 times.
Post: What do you supply tenants?
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Roy N.:
Originally posted by @Ryan Steele:
Ryan:
Only in the U.S.A. ;-)
Many years ago, I brought back a VW vehicle from Europe. Before I could bring the vehicle back to Canada, I had to take it to VW to be fitted with a North American "kit". Much of the "kit" was things like replacing the halogen taillights with the dimmer NA versions, adjusting the radio for the difference in frequency banding, etc.
One thing that did stand out, was the North American version of the owners manual. It was twice as long as the original and much of the new content was inane CYA messages ... my favourite was "do not lay in front of vehicle when it is running".
Microwave instructions in USA: Do not dry your cat on the microwave
:)
Post: What do you supply tenants?
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Roy N.:
Originally posted by @Colleen F.:
Colleen:
One of our student tenants called last week as it seems one of two shovels we left them at the beginning of winter had "disappeared". When I stopped to drop off new shovels, I decided to widen the walkway to the front door ... guess what I found buried in the snow :-) We reaffirmed with the {student} tenants that snow shovels are best stored vertical if you ever plan to use them again.
All:
We provide all our tenants with a "Welcome package" which includes small plastic caddy filled with cleaning supplies under the kitchen sink, along with a toilet brush and plunger. The package also contains coupons for local community businesses.
Those tenants in SFHs we also leave a snow shovel and bucket of de-icer (we no longer use NaCl). We use to leave furnace filters as well, but have moved to having our own people go in every 3-months and change the filters ... it gives us another opportunity to inspect the property.
Our student tenants also receive a "Take me home" card which they can use with one of the local taxi companies to get a lift back to their house. In its original form, it was only intended for the first {party} month of the school year to ensure our tenants always had a way home if they had been out clubbing. It proved so popular, that it has become a permanent fixture.
OMG Roy, I want to be your tenant :)
Post: What do you supply tenants?
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Richard C.:
Also fire extinguishers.
Not enough , i had to buy them a Toilet auger ! Actually, I mean, I charged them for the toilet auger but I went to the store and delivered to them for free.
Post: New Member from Toronto
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Allison Shepstone:
Mike-we actually owned a property in Hamilton once-not a great investment ad took forever to get rid of it. Actually glad to have it off our hands, but that was just one property, there are definitely some good areas out there.
Hi Allison, what kind of properties do you buy in Toronto -how many units- and which neigbourhoods ?
I have been buying in Little Italy and Portugal Village
Filipe
Post: Buy and hold in perpetuity vs exit plan
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
My plan is:
- buy and hold forever the best performant properties
- keep refinancing as long they are cash flow positive and enjoy life, and enjoy the boring and steady cash flow.
- I do not need to be stressed if I have sufficient retirement funds, cash flow will be my retirement fund.
Another option would be to sell everything and provide second mortgages at 12%. You will still get steady income from interest payments.
Post: Buy and hold in perpetuity vs exit plan
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Duncan Taylor:
Originally posted by @Jerry W.:
One of the few advantages of having a Congress full of millionaires is their long term goals are very safely in line with mine regardless of party affiliation. ;-)
well said:)
Post: Buy and hold in perpetuity vs exit plan
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Bill Gulley:
Originally posted by @Greg Rulfs:
I can't speak to the tax/estate implications.
Not really wise advice from a guru. That can be a good way to get underwater, rents fall, cash flow goes down, caught with long term debt. If you look up most of the gurus, you'll find that those that didn't go to jail have been in bankruptcy, some have done both. Time is a factor. Buy, refi, repeat is a good strategy early on, later on you'll have other factors to consider. Can't really assume that in 50 years your third or fifth mortgage will be working well for you or your heirs. :)
I do not entirely agree, it does not matter if it becomes cash flow negative. The objective , like it says above is to invest in more properties. Just make sure the total cash flow increases after investing the refinanced money.
Property 1 was cashflowing +250, after refinancing starts losing 50 a month, if the new property cash flows +500, your new total cash flow is now +400, almost double than before, I would do this any time.
Also, its preferable that you buy properties that cash flow or at least break even with 100% financing, that is now one of my parameters on my investments, it forces you to be patient and wait for the best deal possible, it makes the investment safer even if something goes wrong. This way your properties at 80% LTV will hardly ever be cash flow negative.
Robbert might be a Guru and good salesman (he tries hard to sell his training courses), but until now most of the stuff he says makes sense. I did not read any of his books , but I can only say good things from the youtube videos he posted.
I wished most of the authors were like him. When you have guru's talking about getting rich fast you should be afraid of them, Robbert does not talk about getting rich fast.
Post: Canadian Investors
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Greg Rulfs:
I have looked at them, but the numbers never seem to make more money than with my multi family strategy (buy big space and rough, clean up and rent).
But he guys in Hamilton Mountain swear by them.
I think its a very good strategy if you just compare with sfh rental or duplexes/ some triplexes. Instead of renting to a family you rent to 5 or 6 students , at around $500 each.
Post: Canadian Investors
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Roy N.:
This is true, but some of the taxes withheld by the IRS are rebated on our Canadian taxes due to tax treaties between the two countries. You would receive similar treatment as an U.S.A. Citizen investing in Canada.
Now ... is it really worthwhile ... in some instances, yes.
We are looking at a 6-unit property in Texas with scheduled rent of $3150/mth, {claimed} operating expenses of $1484/month with an asking price of $180K.
We just purchased a 5-unit property here at home with scheduled rent of $3390/month {$4250/month once we get rents to market and bring a 6th unit on-line}, operating expenses of $1584/month; and the asking price was $389,900
That is why it can be worth it :)
Sweet numbers :)
Funny, I just bought a book about investment in apartment buildings and the author's main market is Texas.
Post: Canadian Investors
- Investor
- toronto, Ontario
- Posts 115
- Votes 8
Originally posted by @Allison Shepstone:
We have begun to look at investments in Phoenix, Austin and Atlanta, but on a recent trip we saw a lot of potential in flips. The idea of managing one remotely and the international struggles seem a bit daunting though....anyone have experience and advice on this?
I have been successful until now, 75% of my income properties have been purchased on bidding wars in crazy Toronto. I only buy properties with best possible future , one property a year. I am closing on my last one this month.
Now I am out of Toronto since I do not do flips, I ran out of money. I always need 200K to buy and renovate a income property, and I do not make 200K Net a year :).
if you flip, the bidding wars may be good for you, since you buy low and sell high on a bidding war :)
There is still houses that do not attract bidding wars, you just need to be patient e negotiate. I bought the last one 50K below asking because the seller was overpricing the property.... but still had a bidding war to deal with at 50K under asking, funny isn't it :)
I have properties in Portugal and I do not love to leave 100% of the management to the property Manager. For me it's only worth it to do it if you really get a lot more than where you live, maybe 50% more.
You have tax implications and accounting expenses to deal with.
Another thing to deal with is financing. I do not know how financing works in US for Canadians.
I was researching Detroit Downtown for apartment buildings, very risky, but who knows it can be good in the long run.
What is the cash on cash return you are seeing in US?
In Canada my minimum cash on cash has to be 15%.