All Forum Posts by: Chris Habets

If I don't have a good yeare for the cash elsewhere I use the cash. 

Hi Jordan,

Interest on loans used for investment properties is tax deductible - ideally you keep separate LoC for investment expenses. This makes the accounting easier.

But tax-deductible isn't necessarily that end of the equation - if you have money sitting around doing nothing, than it is worthwhile to pay-off the LoC. I always assume I get 25%-30% back on tax-deductible things, so you're still paying 70%-75% of the cost out of pocket. 

I've used Tierney-Stauffer before and they were very professional. 

I also know someone at SPITERI & URSULAK LLP, and he speaks highly of his firm.

But, do you need a lawyer for a refinance? I just went through one with my Mortgage Broker alone (Kristin from Dominion, who I highly recommend), and had no need to lawyer up for the whole thing. Sounds like unneeded extra cost. 

Oh and don't forget to give them 90 days notice for rent increase of 2.2 % for May 1! 

I have some student experience - 8 years of it - and yes, your PM is right. But, conveniently, students almost always move out at the end of term (May 1) or right before term (Aug 31). You'll be fine. 

@Scott V.

It's not optimized, obviously - but it's a choice that will put you back a bit from full FI, and slow your real estate investing as well, possibly, but it's an informed choice to do it. I wouldn't, but I'm not a car nut.

It's ridiculous. Way more buyers than sellers. Almost all retail buyers if that helps - a lot of the multi family units are still slow to sell. At least from what I've seen, which is limited to glancing at realtor.ca (often). 

A bubble? Eh. We're a strong market here in Ottawa. Well anchored by the government. There will be a bit of a correction - I know of a few people waiting until the spring to sell, and if I know a few I'm guessing there are a lot. So my guess is there is a bit of a correction but only a few percent. 

Hi Tyler, I agree on Cornwall - plus the city is very restrictive on renovation permits. 

Smiths Falls looks awesome for a BRRRR to me. Kemptville and Carleton Place as well, although they're a bit pricier.

I agree with Matt to look at Gatineau - you deal with Quebec taxes and tenant laws, but there are a lot of properties in good areas that need a reno. 

Hi Ian, partnering with someone in another area then the GTA would be your best bet to get going - unless you have a lot of money. This partnership would likely be in the form of you putting in money and some remote help whenever you can. However, I get that that's not how some people want to start - they want to touch and feel everything. I did. Plus it's still money in.

The other option would be to house-hack to get going. You're barely getting by where you are - perhaps a roommate, or moving to a duplex or triplex and taking advantage of the lower downpayment for a primary occupancy. This should both reduce your monthly outlay AND get you ahead in the real-estate game. This is what I did - roommates at place 1, selling place 1. Roommates at place 2 (a duplex), and then moving to the small apartment in the duplex, then renting out both parts of the duplex and moving to my own primary. 

Hi Brody, great start! The building code in Ontario for adding units is complex - I would recommend either getting requirements from the city like Sherrie said, (in writing), or getting a professional in to look it over. 

From a high level, you'll need to make sure you're meeting Ontario Building Code requirements for ceiling height (and allowed bulkheads), window/living space ratios, egress, zoning (you seem to be good there), insulation - as well as, of course, Fire Code requirements for multi-units (fire-resistance between units, fire-resistant closures, sprinklers, fire and CO detectors, insulation between units). Obviously there is overlap and cross-reference between the two codes. If there is a shared mechanical room with a fuel-fired appliance (eg. furnace) then there are more requirements.

It's a PITA, but I would recommend renovating your other units to the 4-unit apartment building standards now, to avoid costly retrofits. This could mean things like sprinklers, or a second drywall layer, or a bigger egress window.

I'm curious, do each unit pay utilities? Central heat? AC?