All Forum Posts by: Andy Welmers

In Ontario (Ottawa) people with student rentals, do you include all utilities (heat / hydro / water) in the cost for students, or do the students pay the utilities on their own (split the costs between them)?

Thanks, Andy

Welcome to BP, great place to learn lots!

I upgraded to pro to get more use from the calculators, and for a few of the 'perks'. Calculators, so far, have given me a decent idea of how to vet a home. I am sure a lot of my assumptions, and numbers are still a bit off, but at least it is a starting point. Once I am a bit more sure of the numbers I will probably create an excel sheet, to speed up the process. It seems our financing options a more limited 'creatively' than those in the states, so the math will also be more limited. 

Book on low and no money down has some good information (such as Joint ventures) but a lot of the options are less useful in Canada. So far, the podcasts, and forums have given me the best information with lots of helpful folks here. I did 1 of the guru classes which was focused on Canada, ('cheep' at $1000) which had great information but I found very poor jumping off point. (I have however signed up for the Robert Kiyosawki free 2 hour 'intro course' on Friday in Kanada (Ottawa) Ontario on Friday if anyone else is going there).

Best think I would think would be to get active in the forums, try out the calculators to see how they work, if you are excel savvy, you could do up a base estimate sheet fairly quickly. Take all the info you can get, with the understanding there is a very US leaning information base. When you get more involved, and learn more, you can make the 'pro' decision much better.

Nice job. It's always god to hear what is working for others!

So I had a chat with my mortgage broker about this program. It appears that the product is for use on second homes, vacation properties, homes for direct relation (mother/father/child). What looks like 'personal use' properties. The mortgage insurance looks to be very similar to CMHC, with premiums being similar as

That being said, this may still be a creative way of finding investment. Vacation rental anyone? Or possibly, as I am looking about an hour away, second home, which happens to be a duplex or quad? How long would I have to hold this as a 'personal' second home, even if I loose the cash flow of the additional unit (Assuming I can make the rest cash flow without that unit)?

Vacation rental was something I had thought about, if I can make the numbers work, which I would use for the family 1 week (aprox) out of the year. I don't have set criteria yet, but don't want to vary too far off the SFH / small multi for the first purchase.

Tri/Quad homes they are asking for 10% down. 

I have not done thorough research on this option to find out what they will / wont qualify. Maybe a good conversation with a representative will let me know what they can do. It sounds like there are 2 or 3 private mortgage insurance companies out there which could do these type of plans

Looks interesting, I'll look into Genworth products. See if that is an option in the area.

@Matt Geerts Thanks Matt, that is kind of what I am finding in my research, and talking with mortgage brokers. I do have a partnership (family) in the works, but I am still trying to find out if there are any other methods out there for me. A property that is free and clear would make 'creative' funding more likely, but also more difficult to find.

Private I assume would be either a) full cost of property, renovate & refi leaving 20% in the property b) (silent) partnership with both names on the mortgage, with partner bringing the 20% for traditional lenders. (as I believe in Canada you cannot 'borrow' funds for your mortgage down payment = 100% financing)

Once I find a property (BRRRR) things would be easier to repeat (debt paydown on an additional property, increased equity, and ability to pull out equity to repeat the process) but finding the initial one is the key.

I don't want to be stuck with a bad deal, so learning to run the numbers and meeting with whomever I can to gain education, and learning about any potential funding model I can find.

Welcome to BP! take that fire hose of knowledge and drink up as much as you can. I'm still in the knowledge seeking stage, but looking to transition to the acquisition stage. Podcasts are great, tools are great. I've been picking up and reading a bunch of the recommended books, and that information helps a lot as well!

@Shawn Allen @Gary McGowan

Thanks for the input. I expected it would be difficult to involve traditional lender. Options are there for full seller / private finance, however if they are requiring security of 20% down on the cost of the property (opposed to the value of the property) then I currently don't have much reason to go through private funds.

Lease options are still an intriguing option to have time to gain additional funds for down payment, just need to make sure the option is possible, especially if putting any work into the home to increase it's value.

Speaking of that, is it possible to have a lease option, renovate to increase value, and use the built in equity as part of the 20%? or would that still need sale value 20%, open 1 year mortgage, and refinance the next day if I need/want to pull that equity out?

Has anyone used creative financing successfully in Ontario? I met with a mortgage agent to discuss options they had available. I was thinking of proposing seller financing on a couple of investment properties in the areas. (specifically small multifamily properties, currently being sold, so from investor to investor). The only reason I would be looking at 'creative financing' would be to reduce the down payment below 20%. If this were not the case, I would be looking at traditional financing.

I guess I could look at seller financing for the entire mortgage, or at lease option to get into the property to begin with. However from the sounds of the mortgage agent, mixing seller finance with traditional mortgages (less than 20% down payment) would be very difficult to pull off.

Any input would be great.

Andy