All Forum Posts by: Christopher Pickup

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $193,000
Cash invested: $49,000

This little duplex was rung #1 on our property ladder, and it has changed our life.
We were living in Vancouver and purchasing a home felt out of reach. Then we switched strategies to looking in Halifax, Nova Scotia, where I grew up and had many competitive advantages.
This property was step 1 for us into the world of real estate investing and has paved the way forward for us. It has cashflowed since day 1 and continues to be very profitable.
This house bought us more houses!

What made you interested in investing in this type of deal?

Cash. Flow.
2 units in a good residential neighbourhood close to a good school a near highway access.

How did you find this deal and how did you negotiate it?

It was sitting on the MLS

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

At a tenant turnover we added a heat pump unit, hot water tanks, new cabinets, paint, and flooring.

What was the outcome?

the property has steadily cash-flowed, and rents as well as property value has now more than doubled over the last 5 years

Lessons learned? Challenges?

Each time I had a tenant issue, a repair to make or late rent, my initial resposne was to want to give in and give up. Sell it all.

What I came to realize is that at each turn, life/God was inviting me to dig deeper into myself and seek a bigger "why" behind these struggles - who do I have the opportunity to become through facing these obstacles head on?!
"even suffering ceases to be suffering when it finds a meaning"

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $193,000
Cash invested: $49,000

This little duplex was rung #1 on the property ladder, and it has changed our life.
We were living in Vancouver and the prospect of purchasing a home felt out of reach given the high cost of homes. Then we switched strategies to looking in Halifax, Nova Scotia, where I grew up and had many competitive advantages.
So before we got our own property to live in, we bought this duplex. This property has catapulted us into the world of real estate investing and has paved the way forward for us. It has cashflowed since day 1 and continues to be a beast!
To use a @davidgreene line - this house bought me more houses.

What made you interested in investing in this type of deal?

Cash. Flow.
2 units in a good residential neighbourhood close to a good school a near highway access.

How did you find this deal and how did you negotiate it?

It was sitting on the MLS

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

At a tenant turnover we added a heat pump unit, hot water tanks, new cabinets, paint, and flooring.

What was the outcome?

the property has steadily cash-flowed, and rents as well as property value has now more than doubled over the last 5 years

Lessons learned? Challenges?

Each time I had a tenant issue, a repair to make or late rent, my initial resposne was to want to give in and give up. Sell it all.

What I came to realize is that at each turn, life/God was inviting me to dig deeper into myself and seek a bigger "why" behind these struggles - who do I have the opportunity to become through facing these obstacles head on?!
"even suffering ceases to be suffering when it finds a meaning"

With uncertainty about the near future in the housing market, particularly with ARV's, are you buying BRRRR deals right now?

I have the opportunity to acquire 1-3 BRRRR-worthy sf homes, but am cautious because of the potential for the Refi to tank if we see a dip.

On the other hand, the economic factors like interest rates, affordability, and supply could make the sf home only increase in value in the short term. 

Are you hot or cold on brrrr deals right now? 

Hi Eric, 

When you say "how do we get the money out to use", do you mean for investment purposes? or for personal use? (like to pay for groceries etc.) For business expenses it could be paid from your corps account. 

In Canada you can "pay yourself" through two means - a salary, or a dividend. Each have pros and cons - with a salary the tax is taken up front but requires more bookkeeping for the corp. Dividends are simpler transactions for the corp but are riskier for individuals because CRA will require their income taxe come tax season, and if you haven't set money aside, it could sting you with a big bill. 

There is more to it, but that's a simple answer based on my research - note I'm not a CPA, you should talk to one of them 😁

Cheers, 

Chris