All Forum Posts by: Brandon Dietz

Answering my own question while asking it, I need to take on more manageable bites.  Starting smaller and moving up the chain instead of starting off so aggressively. Thanks in advance for the read and hopefully anyone else thinking about diving in realizes sometimes you need to take a step back for introspection!

I will make this happen and get there, it just takes time! 

I have stumbled upon an opportunity in an area where there will be massive job growth.  

This opportunity is a multi-unit seller financing opportunity that will not be able to cashflow right away without some up front work. 

I have reviewed the information available and think it seems like a viable option. I understand my tolerance for interest rate hikes and think I have a good idea on what needs to be done to get it to where the seller wants it to be from a purchase price perspective to qualify for a conventional mortgage within the next 3-5 years.  

However, with little practical experience in the industry, I am a tad cautious.  

I have done quite a bit of research on multi-unit properties, to be honest probably still not enough. I also have a property management software in the works as well as resources to help with common issues (plumbing, commercial electrical, construction / renovations, painting, etc.). This accompanied by my home ownership (Townhouse, 4 br house, new construction 4 bedroom house) the last 11 years I feel that I have a good solid foundation to start something out right and be able to take this project on. 

My concern is not being able to get the property in the shape it needs to be to move over to a conventional mortgage when the time comes.  

In the end, I think it will be a LOT of work but could be beneficial in the end as long as things go as planned (which doesn't often happen).

Any feedback is welcome and I would love to hear some thoughts on whether or not this seems like I am jumping in too fast or if anyone wants to share any additional experiences. 

From what I can tell starting a business to handle profit and expenses is a good thing when getting into property investment.  However, it seems like a lot of work to start a Corporation vs Sole Proprietorship.  I have currently started a sole prop to handle the transactions and be able to still use my credit to assist in purchasing properties and plan on starting a corporation after some equity has been built up.  

I do understand the risks as they are increased because I do not have separation, however, wondering if anyone else has done it this way and found success? Or has anyone had any bad experiences / would recommend the separation to protect personal assets?

Thanks for the feedback, this is great! I was thinking I needed to start by breaking everything out and thinking how much things should cost. 

Hi all, 

I am currently analyzing my "baseline" expenses for my property analysis and wanted oppinions. 

Currently in Ontario, Canada, do some of these seem too high or unreasonable? 

I know they say that most properties aren't a good deal, but after analyzing a bunch of them I am wondering if I am just being too strict with my requirements. 

Note: Vacancy / Property management depends on cost so thats why they are zero. 

Thanks in advance, I know its probably best to use the BP calculators, and not do spreadsheets but I'm trying to do as many as I can myself. 

 These are all very good points and help me go back to the drawing board! 

Thank you for your feedback, I really appreciate it!

It is not, but I have also found another opportunity in St Thomas, and I'm investigating now.  

Thank you for your input, you have very valid points.

I have started a business and am registering a business account tomorrow to keep track of financials. 

Hi there, 

Thanks in advance for the read.

I am new to the real estate investing world and had a question / would love opinions on my current analysis!

This may be a stupid question so forgive my ignorance. 

Has anyone considered purchasing a property that just broke even from a cash flow perspective to assist in bringing your taxable income down.  

For example, I found a property in Ontario that I could see being a potential to get started and get my feet wet.  Not a home run, barely a base hit, and to be honest I would probably consider it a sac-fly. But at least it would get me started.  It is a legal triplex (1br, 2br, 3br) and I am trying to consider my options.  After analysis, it looks like the cashflow would be around -$41.63 a month for a 20 year mortgage but around $162.97 for a 25 year (I was thinking about trying to stick to the 20 year).  However, I also feel that my monthly expenses are a bit high, but I feel like it makes sense for the age of the property and its condition (Around $1,472).  So technically, if it can 'hold together' so to speak, it would be a pretty decent start. Seeing how I paid quite a bit in taxes last year, I have been considering this as my first "at bat", primarily because of the tax benefits. 

Listed Price $359,900

Planned purchase price $338,002 (98% of value minus estimated $15K reno cost)

20% Down $67,600.40

Mortgage term 20 years, 4.9% interest

Monthly Mortgage $1,769.63

Total Monthly Expenses $1,728 (Taxes/Vacancy/Insurance/Property Management/CapEx)

Percentage of renters in area 63%

Average Household Income $66,500 (30% of rent would be $1,662.50)

Total Planned Rental Cost (1br/2br/3br): $1,500/$1,600/$1,700 (still need to confirm what the current tenants are renting at, I know this could drastically change my cash flow figure)

Average Home Value: $270,000

Average Rental Comparisons in the area (1br/2br/3br): $1,510/$1,650/$1,750

2% Test = 0.95% (1.42% if room is rented)

Side note: This is also not including the fact that the 1 bedroom in the attic has been recently renovated and not currently rented, at this time I'm not trying to expect it to be rented right off the bat.

Let me know if you have any questions or want any clarification.  

Again I'm new so forgive me if I didn't explain thoroughly enough or in the right way. 

Cheers!