All Forum Posts by: Jamie Montpellier

@Steve B. 

Hi Steve,

I appreciate any input on this website, I think that's the whole idea within the community is to pick each other's brain and try to help each other out.  Your comment stating those numbers are horrid come with very little advice and although I understand that being in the U.S. affords you much better value, I'm simply assessing what's in my local market and obviously it's not lucrative at the moment.

Cheers,

Jamie

@Jerry W. 

 I appreciate your post and I have ran the numbers over in more detail and although it's a possible cashflow property (6 plex) , I agree with what you said, there are better deals out there. 

Thanks again,

Jamie

Hi Ali,

I am a little star struck Ali as I have been reading your blog for almost a year now.  I really enjoy reading your stuff, keep up the great work. As for the scenarios mentioned above, I can confirm that both are cashflow positive with a 20% down payment scenario.  No easy feat that's for sure.  What's your take on turnkey vs fixer upper or marginal properties?

Jamie

Hi everyone,

IMO the 2% would make it so that no investor on Canadian soil could be profitable. That or we'd be looking at low-income/mobile homes as our only means to an end.

Error : 6 plex / 4 x 2 bed, 1 bath + 2 x 1bed, 1bath

Hi everyone,

A business partner and I are on the brink of making our first joint venture deal but are faced with two different scenarios. 

Scenario 1 - Buy a 4plex (New build - less than a year old)

Asking Price : 600,000$  / 4 x 2 bed,1bath renting @ 1200$ a unit.

Location : Grade A   new suburb / residential

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Scenario 2 - Buy a 6 plex (More than 40  years old, needs new roof, gutted unit (renovations needed) and cosmetic work).

Asking Price : 525,000$ / 4 x 2 bed, 1 bath renting @ 900$ unit.

Location : Grade B minus / : older part of town with mix of commercial

I understand the concept of capturing equity in the scenario 2 but doesn't that get offset with the higher capital appreciation that you would get in Scenario 1 ??

Your thoughts...

Good afternoon everyone,

I consider myself very much a rookie in the game of real estate investing and have lots to learn but as a canadian counterpart I sometimes find myself gawking at your home prices in the US.  Furthermore, I happen to live in one of the more expensive parts of Canada (Greater Toronto Area i.e. Newmarket, Ontario).  Which brings me to my question to all of you, what is the next logical step for me as a newbie investor? 

I currently own ONE rental property which was a previous home 4 hours away and at the moment based on the numbers I have is slightly on the positive side of the cashflow equation.  Let's say if I count the 5-7% for maintenance and vacancy I finish the month off with 50$ in my pockets.  Again, this was a house purchase and I had no intention on renting it out but instead of selling it when I moved in Southern Ontario, I gave it a go and since then I've ran into Bigger Pockets. :)

Without seeming to be long-winded with all of this, I am wondering if I should just consider my hometown market which is affordable but again 4hrs away.  Or should I open my eyes to the U.S. knowingly that the distance/tax implications/ etc... is a whole different bag of tricks for a seasoned investor let alone a new guy on the block.

What do you guys think? 

To give you an example of what exists in my neck of the woods:

4 plex - 4 one bedroom units - century home - approx 700sqft each unit rents for approximately 800-900 per month on the safe side.

Asking price : 649900$...  you don't even need to do the math to know this is the sinking Titanic for someone who doesn`t know what they are doing.

Looking forward to hearing from you guys,

Cheers!

Jamie Montpellier

High School Business Teacher / Part-time REI

From experience, there's no better education than starting with a SFU with the potential of maybe having 2 units but this is not a get rich quick strategy. That learning process you mentioned happens as you make those deals become a reality.

Good luck

Jamie