Edmonton real estate investors

[Al Carlo Agustin]

Anybody from Edmonton AB have some tips for someone trying to start out real estate investing?

[Brad Cote]

@Al Carlo Agustin I would recommend first understanding your endpoint and goals, then consider your skills, financial resources and target market. You can then build a plan and start investing in a manner that best suits your specific circumstances. Make sure you consider your big picture plan initially, especially on the financing side, so that you don’t limit yourself prematurely through some thin deals.

It sounds like you are interested in rental property buy and hold. If you have access to capital/equity already, you could start by purchasing a property and renting it out. More units are always better, as it spreads out your risk over more units; for example if you have a vacant SFH/condo you are getting zero rental income, whereas if you have a vacant duplex unit, you are still getting the rent from the second unit, etc.

You will also find that the more units you target, the cost of entry, operating costs, capital costs, and deal complexity also will increase. More than 4 units means you are dealing with a commercial property versus a residential property, which will come with different lending requirements and regulations. I would recommend starting with residential multifamily (duplex, fourplex, etc.) to build some experience, and then scale to apartments when you have more experience.

I would recommend getting more exposure to real estate through books, research, meet ups, and looking at properties in your market. Learn how to analyze deals, and start talking to service providers and other investors so you can begin building your team (realtor, mortgage broker, contractor, etc.).

Good luck!

@Al Carlo Agustin