All Forum Posts by: Andrew DeB

I do 25 year mortgages. The biggest benefit is when you have vacancies your out of the pocket payment is lower so it doesn't affect you as much. My total cash flow between 2 duplexes is $1100. I keep a $20,000 reserve fund for fixing stuff and incase tenants don't pay rent, vacancies or whatever and my extra cash flow goes into this account. Whenever the account goes over $20k i take the excess cash and put it down on the principal of my duplex with the higher interest rate. It's a system that gives me peace of mind because i'm never worried about large expenses and usually 5-7k a year is put down on principal.

If you don't have that extra cash flow you won't have as much peace of mind. Especially since it's your first property. Maybe on yourd 3rd or 4th do a 15 year.

Ok so i purchased my first SFH 2 years ago as my primary residence, put 5% down. Lived in it for 8 months and it's been a rental since. I purchased my 2nd SFH last year as a secondary primary residence, put 5% down and rented it out since day 1. I went through the pre approval process with my mortgage broker and she pre approved me to buy another property with 5% down. She told me because my current properties are rentals i can buy a primary residence again as long as i live in it (yeah right lol). My first house does have 20% equity because of appreciation. Is my broker wrong or are we allowed to keep buying primary residences for 5% down and turn them into rentals? I live in Alberta.

Thanks!