All Forum Posts by: Bobby Clair

Like Windsor. Detroit is a city in the US with high crime rate. Its not that crimes don't happen in the rest of the world, but the rate is simply higher. When looking at Real Estate Investing, you have to see crime stats for the location you are investing in. Some people are ok with high crime rates, but some aren't.  

Your Viewpoint is understandable because you are a realtor in the area so you will have only nice things to say about it. But I know atleast 3 investors, who had their properties broken into, and the one like above had a lot of damages. All of them are getting video surveillances installed on their premises, but it doesn't change the fact that the tenant profile in the area is not nice, and as an investor, it isn't a nice place to invest because of all these hassles.  

Possibly because most homes there are vacation homes and people don't like being sold services when out vacationing, and are likely not in those homes during the winter months. 

A Friends Place was Thrashed and all the Copper was stolen in a good area in Windsor. Another reason why Windsor is a ****** place to invest in and manage real estate. These kinds of things are fairly common there and is a disaster for any landlord. 

https://imgur.com/a/IQABLyT

Thats probably because you are based in the US. In Canada, it doesn't happen like that. No Deals goes unseen because of all Canada living only in Southern Ontario, and scarcity of land. 

Not sure about the rates at the moment, but keep in mind that you will most likely require a down payment of 35-50% in todays market because of the competition.

Thanks. So are you saying the aggregate DCR from the Commercial and the residential Property should be more than 1.25 ? What if the residential is a primary residence, and doesn't really have an income ?

I was considering taking a commercial mortgage 6 months down the line. Right now I am eligible to take up a residential mortgage, where in I will be putting a 25% down payment. This can either be a primary residence or an investment property. 

How would this impact my commercial loan qualification in the future ? I am guessing they would look at how much debt I have, and whats my LTV on that debt(basically how leveraged I am). What is a good way to think about it ?

I know that in Commercial financing, they primarily look at the LTV & the DCR of the building. But how do they account for any residential mortgages the borrower might have ?

@Scott Innocente, I am sure that it does. But it really doesn't have all the economic drivers that I would feel safe as a city to invest in, specially at these prices. 

Windsor is no longer the kind of market it used to be. Average house prices were 200k just 2-3 years back, and now are over 400k. I don't expect much appreciation in that market anymore. Just maybe cash flow, and that too not worth the risk. What do we want ? 1 Million houses in the Windsor ? Not happening.