Investing Around Vancouver, BC. Looking to Make Connections.

[Brendan Conners]

I’m hoping that people can share their experiences with me about their recent successes in BC real estate, markets to be looking at, and the best ways to get started (apartment, townhome, detached, etc). If people want to connect, I have an eagerness to learn from those who can take me to the next level. 

I'm interested in flipping, BRRR, cash flow, and possibly remote investing as the lower mainland opportunities are quickly drying up. I've been looking at Chilliwack, Nanaimo, and Prince George. Also many places in Ontario that provide much more opportunity.

After over 5 years of learning and educating myself about the world of real estate and wealth building, I’m finally in a position to get into real estate. I’m now 24 year old and have been working harder than ever to break in the the ridiculous market that is the Vancouver Lower Mainland. I’ve been working, at minimum, 60 hours a week to save up for a down payment. I’ve sacrificed in many ways to be where I am today.

[Wendell Fong]

Never ever make your first RE investment negative cash flow unless it is your primary residence.   

" No one has ever gotten rich off of $300/mo cashflow."  I disagree with this statement.  There is an estimate that says 90% of millionaires got to become millionaires investing in Real Estate.  What they Don't say is that the vast majority got that way by accident.  In addition to that $300 cash flow, they made a monthly mortgage payment and of that say $1600 payment, a large portion goes into equity.  

example 500k property with 125k down payment 375,000 mortgage at 2% .. rough estimated mortgage payment is $1600 with 800 going to interest and $800 going to principal pay down. That is $300+$800 per month, not just $300. 

Wait until you have a problem tenant that does not pay..  or the roof leaks, or some tree roots break through your drain tiles.   If your in a Strata, I have seen Special Levies for major projects that go +50k per owner!  As a Manager, I have passed Special levies, approved by owners of over $10k EACH for major repairs.  Wait till your company closes AND the tenant doesn't pay.  What do you do if there is a market correction and the value of the property drops to 400k?  If you were positive cash flow, you would just bank the cash, build up your capex/contingency fund and ignore the market fluctuations. 

After a few years, when you have too much equity or cash in your contingency fund, re-finance and look for your next investment. 

I have lots of real life stories to tell, but I suggest you keep reading and studying.  I am sure you will get lots of different opinions.  Get lots of input and keep asking questions. Try listening to Ken McElroy's   predictions, right at the end of the talk around Minute 18.  He is American, but the principle still applies.