All Forum Posts by: Zorya Belanger

Welcome @Kuzi Matambo Dumont! I'm also investing in Alberta & Texas. Why the switch to Ohio?

@Collins Achebe

Lots of people wanting to help, but you need advice from Canadians investing in the US. Megan's suggestion to listen to Glen Sutherland's podcast is great. I'm in Alberta and I learned from Marcin Drozdz, and now I'm a partner with him on a 144 unit in Houston. You'll learn the most by being involved in a deal. 

I agree with Travis - I can be of more help if I know more about you and your reasons for investing in the US.

Quote from @Anabel Lop:

Hello everyone! Hola @Zorya Belanger and everyone else in this thread. 

Is anybody investing in Morinville, Alberta (30-40 min from Edmonton)? I came across an opportunity to buy a rental home here but doing my research "google says" that Morinville is a growing community. The Census data shows that the population is growing but very slowly. I plan to talk to a property manager but wanted to ask your opinion on this town as well....Thank you in advance.

I’m not investing there but it looks like a safe bet based on population. You want to look at the growth rate as it compares to the provincial rate, and looks like Alberta grew 5% 2016-2021, while Morinville grew about 7%. That’s good. I think it’s because it’s only 15 min drive north from St Albert, which has tons of amenities, and the north side of St. Albert just keeps growing too. 

Quote from @Dayne Peterson:

Quote from @Zorya Belanger:

Hi @Suzanne Laird

Seems like you unintentionally started a debate about the US midwest :)

Back to your original question of Edmonton/Saskatoon vs. Vancouver...

I'm in Edmonton so probably biased to the city, but can also provide some insight to what works here. Since Edmonton is affordable (even more so than Saskatoon, because tenants have higher income compared to market rent) then what I've found works the best is brand-new small multifamily (either greenfield or in-fill). You can get financing with CMHC MLI Select program and put in as little 5% down. 50 year amortization. So your money goes a lot further.

you don't have to be involved in the build - there are turn-key options. They tend to appreciate and cashflow. Edmonton is more of a hybrid market. 

Ex. we're closing on a brand new 6-plex. $1.3M purchase price, and total investment with closing costs is $103k. Cash flowing over $700/month. 200k in equity on the buy (difference between purchase price & appraised value).

I was wondering if you would be willing to share your lenders who offer MLI options? I have spoken with about 10 and haven't had success yet !

 Oh really? I use a mortgage broker, but you could try going straight to the lender. We have 3 CMHC MLI Select loans and they are all with People's Trust. You need to apply to CMHC first, get the Certificate of Insurance, and then shop around to lenders. I recommend getting a mortgage broker to help with the whole process.

Hi @Suzanne Laird

Seems like you unintentionally started a debate about the US midwest :)

Back to your original question of Edmonton/Saskatoon vs. Vancouver...

I'm in Edmonton so probably biased to the city, but can also provide some insight to what works here. Since Edmonton is affordable (even more so than Saskatoon, because tenants have higher income compared to market rent) then what I've found works the best is brand-new small multifamily (either greenfield or in-fill). You can get financing with CMHC MLI Select program and put in as little 5% down. 50 year amortization. So your money goes a lot further.

you don't have to be involved in the build - there are turn-key options. They tend to appreciate and cashflow. Edmonton is more of a hybrid market. 

Ex. we're closing on a brand new 6-plex. $1.3M purchase price, and total investment with closing costs is $103k. Cash flowing over $700/month. 200k in equity on the buy (difference between purchase price & appraised value).

I'd say so! We are closing on a property right now that matches all those criteria. $77k/door :)

Thanks @Cody Neustaedter

Hi @Michael Carney - I've done both residential and multifamily in Edmonton. You will typically use different agents for each asset class; however, I know a couple of residential realtors who also sell multifamily - though they are not traditional multifamily. They are multiple residential properties purchased together. Like 3 townhouses (3 titles) each with legal secondary suites, for a total of 6 units. You can get 3 residential mortgages or one commercial mortgage. They are free hold.

I wouldn't recommend condos in Edmonton. 

I've been living here for the last 37 years so I'd say I know that city well!

Quote from @Cody L.:

Quote from @Zorya Belanger:

"Texas buying spree during a pandemic" - unfortunately many got up in the hype and bought too much in a hot market, assumed interest rates would stay low, and were highly over-leveraged - up to 93% - yikes! I saw that this operator only started buying in 2017 and would have only experienced good times. 

As Warren Buffett said be “fearful when others are greedy, and greedy when others are fearful.”

We haven't found a deal in over a year, after underwriting 100's of deals, as we stuck to our conservative ways. It was frustrating, but the patience paid off, and finally found a rare deal in Houston on 144-units!

 144 unit IN Houston?  If so, that's crazy as I have a 144 unit in Houston. 

 It's just outside Houston, in Pasadena.

"Texas buying spree during a pandemic" - unfortunately many got up in the hype and bought too much in a hot market, assumed interest rates would stay low, and were highly over-leveraged - up to 93% - yikes! I saw that this operator only started buying in 2017 and would have only experienced good times. 

As Warren Buffett said be “fearful when others are greedy, and greedy when others are fearful.”

We haven't found a deal in over a year, after underwriting 100's of deals, as we stuck to our conservative ways. It was frustrating, but the patience paid off, and finally found a rare deal in Houston on 144-units!

A great resource is Glen Sutherland’s podcast A Canadian Investing in the US. 

I'm focused on multifamily in Texas so don't have experience with SFH but Glen does.

I don’t think you need Class C; it really depends on the city and state. Start with looking at landlord friendly states where people are moving to for jobs.