My first London buy and hold.

[David Steinbok]

Investment Info:

Single-family residence buy & hold investment in London.

Purchase price: $149
Cash invested: $27

I refinanced the last property in oshawa and prices were too high for me to make the numbers work again. So I went looking for another town. Everyone I knew headed east to Peterborough so I didnt want to compete with them so I headed west to london. Picked up a nicely renovated 2 bedroom bungalow for 149k$. Its rented for 1200$ and cashflow is on par with the rest of the houses I own but cost me alot less to buy.

What made you interested in investing in this type of deal?

I was having a hard time qualifying for a mortgage, since I no longer had a job. So my new strategy was to boost monthly cashflow. This house cost me 27k$ of my own money and the monthly cashflow is just under $600 a month. Which is excellent.

How did you find this deal and how did you negotiate it?

Real estate agent

How did you finance this deal?

Scotiabank

How did you add value to the deal?

I did some small repairs and added a back porch. Got the house registered with the city as a legal rental unit.

Lessons learned? Challenges?

It took 2 years fighting with the city to get it legal. They had an issue with the fastening system I used to attach the railing to the porch. Hired an engineer. And a big professional railing company. And after 4 hearings and inspections, the new railing system was finally accepted.