All Forum Posts by: Andy Pembleton

What's up BP!

I'm currently an Ontario resident looking to move to Fredericton and have my eyes on a particular property to house hack. Upper floor has 3 bedrooms and a bath and lower has a separate entrance with suitable space to make into a 1 bed apartment.

Upstairs doesn't seem to need any work to be tenant ready. However the basement needs a kitchenette installed, 5/8" drywall on the ceiling, and a bathroom expansion to accommodate a shower stall.

All in to make the basement a self sustainable apartment, I estimated roughly $32,000 in rehab costs. While living there and renting the upper unit, I'd also be making ongoing renos to the basement to add to the cosmetic value.

Is that estimate accurate? I wasn't counting for paint or small things of that sort.

Besides that, I ran the numbers and found cashflow to be positive and, if my estimate is accurate, about a 12% ROI.

Does anyone currently invest in NB that can shed some light on the markets there?

Thanks for reading my long-winded post!

@John Teachout

Exactly! 8' spruce 2×4s are selling for $12 a piece here right now where they were $9 two weeks ago and used to be around $5 when everything was normal. Chipboard has tripled and plywood has also shot up significantly

I have no doubt in my mind that I want to try my hand at real estate investing and just jump right in. However, due to the pandemic, and from my current experience of working at a building supply yard, I am made aware of the rising costs of materials and how it is affecting contractors that come in. 

Does anyone have any thoughts on this one? Would it be better to wait for things to stabilize and prices to go back down, or just go for it? Shortage on material isn't very promising and may increase carrying costs because of the waiting for things to come in. 

Hey so I've had an idea for doing a rehab and rent strategy and was looking to see if anyone else has had a similar idea or has done it before.

Basically I was already considering the idea of seller financing to flip a house, but in addition, using the arv to negotiate a rent-to-own plan with a new tenant. My loan gets paid off to the previous seller, and I take home the surplus of the rehabbed value. The tenant is then using me as a middle man to pay off said "mortgage" and does all the upkeep work on the house and pays their own utilities like a normal homeowner would.

Does that make sense? Is it possible to do?

@Daniel Oh

I'm in the same situation as you brother,

My suggestion (If you're really serious about investing), would be to look into wholesaling or house flipping to start building up some capital and rapport first before tackling rentals. What I've found with the concept of flipping; you'll gain some insight to how all the functions of a house work and then when it comes time to be a landlord, then you know more of what you're getting aside from tenant screening. 

Have you listened to any of the BP podcasts? Regardless, I highly recommend episode 371

Hi everyone! I'm Andy and I'm based in central//eastern ON looking to build connections with people based between Oshawa and Kingston. I'm looking to start my real estate career by flipping houses and wanted to see if there's anyone around that has experience doing fix and flip projects or that is on a similar path

Cheers!

I wouldn't say that's entirely unethical, but if you could find someplace on the lower end of your mortgage scale then it would be more ideal. Rent should ideally be a little more expensive than how you have it set because you'll have to take into account CapEx, taxes, utilities, and all the other fun stuff that comes with ownership. If this were an idea solely just for a new living environment, I'd look for a cheaper deal in where your roommates will pay off everything.

You're in the right mindset though, I can relate to what you're trying to do. However you also have to consider what you're going to do when your tenants move out at the end of their one year lease, and how long it may take for you to find new tenants that are suitable to your standards. 

Like you, I wanted to move out and have a space for me and a couple friends to stay as well, but I realized that everyone has their own paths and intentions in life. At our age, I think it may be best to stay at home for a couple more years to build up capital first.

Hopefully that helps!

@Rachel H. That does help a lot, thank you for your response!

Hi everyone, I'm a newbie investor looking for some input on whether or not it's a good investment to fix and flip a mobile home (not like an RV but a manufactured one). I haven't run any numbers yet because I am unsure if they usually have the same conditions to reaching a set ARV like normal houses do.

This one in particular that I'm looking at needs a bit of rehabbing done to it, and it's on a military base so I figured it might be easier to sell based on that location and how the military is always hiring.

Any info at all would be greatly appreciated :)