What to do with Refi money?

Question

Hey all!

I recently refinanced my first property and pulled out roughly 70k. In my area of Ottawa Canada, that doesn't take you very far. Would I be wise to pan out further away from Ottawa into cheaper/ still desired locations? Try to find a partner to go in on a bigger deal with? Hold off for now to see what happens with the market?

Anything helps :) would love to hear from investors currently investing around my area!

Thanks for your time.

Daphnee Lavoie · Answer

Hey Adam

I’m an investor from Ottawa but my two investments are actually in hull and Gatineau. I just recently purchased a duplex that is 12 minutes from the byword market. I saved soooo much money and I am currently doing short term rentals and my cash flow is amazing. Hull is even getting pretty expensive but the prices of multi families are much more attainable and you are so close to downtown. Let me know if you would like to chat further :) I’m searching for my next multi ASAP

Adam Goyette · Answer

@Chris Habets

How is the Cape breton market? How did you pick that location? My concerns with those close markets is the rentability and Tennant quality. I will do more digging on it.

I would like to hear more about your project in Cape breton!

Adam Goyette · Answer

@Colby Fryar

Thank you for the help. I actually am very interested in getting into syndication, but always figured I would need more money to get started. I will be definitely looking into it more! Any tips, tricks or places to look would be amazing!

Thanks again

Adam Goyette · Answer

@Jim Kittridge I have been interested and looking into submarkets around me as well as I believe there is some good potential there as well! Do you have any advise on where I can go to find people for short term flips? (Other than BP)

Thank you for your time

Adam Goyette · Answer

@Steven Mojsej

Thank you for the response and advise. I am looking more to brrrr a multifamily. The area of town isn't as much of a factor as long as the rent potential is still there!

Mauricio Almeida · Answer

I am in the same boat.   In Kanata.  Willing to wait and see where the market goes but frustrated for loosing time idling.I will probably get a turnkey as my first rental just to get my feet wet slowing.Good lucky and let me know if you see any good opportunity or if you have some sort of partnership in mind.Mauricio

Chris Habets · Answer

Hey Adam, I'm also in Ottawa, I did the same thing you did, and ended up buying a Cape Breton property and brrr'd it - missing the repeat right now. Ottawa and 70k doesn't get you much of a rehab or much of a property.

That being said, it will get you further in Perth, or Alexandria, or Cornwall.

Colby Fryar · Answer

@Adam Goyette  I would definitely consider other markets outside of there.  A $70,000 down payment will get you a pretty decent sized duplex or triplex in a market like Tucson or even better in some mid-west markets.  You might also consider passively investing in syndications if you want to access larger deals and are uncomfortable actively investing out of country.

Jim Kittridge · Answer

There are a lot of options but it really comes down to what your investing goals are first. I'm not in your market, but I like the fundamentals of growing submarkets of major cities. They are typically cheaper to purchase, have good appreciation, and better rental returns.You can also put the money to work passively by short term lending on flips. You'll typically make 8-12% interest with a 30% equity position on the property. If you're buying at 3-4%, that is a nice spread. Just make sure you do your proper due diligence and are protected with a 1st position, well written mortgage and appropriate insurance policy.

Steven Mojsej · Answer

Hey Adam,

I think you need to look st bit at your investors policy first. Do you want something that is a fixer upper, do you want turnkey, are you looking for a townhouse or a condo. What part of the city are you looking in. 70k in some areas of town will go further then in others. Once you have a better idea of what you want and what type of properties you are interested in then go after those that fit your criteria.

Lookong at everything because you have the money is good but if it doesn't fit your plan, it's not really worth it.

If you need a hand with anything I am willing to chat and help you out anyway I can!

Steven