First deal advice - Toronto, Canada

[Keith Macpherson]

Hey all!

I'd love to get some constructive feedback on my plan to flip. 

First off, I will be doing this part time, however with that being said, my full time career is a Construction Estimator for a major renovation company in Toronto and I have the flexibility to take calls and go to site if necessary as I work from home and create my own schedule. I will be hiring my recently retired father as the project manager/site supervisor to manage the day-to-day action. My father-in-law will be lending us $300k in cash for the down payment and construction costs and we are in the middle of consulting with our mortgage broker to see what we qualify for but my assumption would be ~$400k. The long term plan is for my wife to get her real estate licence but in the mean time, I will be using a family member for the first couple of properties that will save us 0.5% in commission fees compared to other realtors. I'd love to post my formula spreadsheet on here, but I don't believe you can insert an excel spreadsheet?

I'd like to know your thoughts on how my father should be paid. We have a great relationship and can speak openly about this together when it comes time, but I'd like to present him a fair offer to begin with. My role other than creating and driving this idea, will be obtaining design, permits/engineering (if required), creating the scope of work, the budget, schedule and coordinating the majority of contractors. My dad would be responsible for being on site, answering to trades, ensuring material is on site, maintaining a clean/safe site, acquiring trades when necessary, meet city/building officials (if necessary), etc. The work he will be doing won't be full time, but it most likely will require more time than mine. I'm thinking I should pay him a % from the net profit instead of per hour since he doesn't need the consistent income as he's collecting from his retirement plan and this will add incentive. What's a reasonable % for him based on his role?   

I have a tax question as well - I've been told by an acquaintance there is a flipping tax (or tax that applies to investors) in Ontario but I can't seem to find any concrete info. on this. Do you guys happen to know any details on this, if so what is the %? This will be on top of capital gains so I'm hoping it's not substantial.

Thanks in advance,

Keith