All Forum Posts by: Conor Kelly

@Wendell Fong Thanks for the response Wendell. I totally agree, there’s plenty of unforeseen things that can go wrong and that’s why having cashflow is a great defensive tactic to preserve your wealth. Typically a property that cashflow $300/month won’t end up netting you much return. At some point there’s usually a big ticket expense that eats up that cashflow and that’s why I said “no one has ever gotten rich off cashflow”. Plenty of people have built a portfolio of cashflowing properties and the mortgage pay down and appreciation has made them rich. But typically, it’s never the cashflow itself. My stance is that, if you can afford to safely own a quality unit that’s cashflow negative or break even (upon the nightmare scenario) then I would say it’s not a bad idea to buy it. Like I said before, this is subjective. I’m just offering Brendan a different perspective/option as buying a property site-unseen on the other side of the country comes with all of its own, new and different risks.

@Brendan Conners Windsor is great. I’ve got a great realtor and property manager out there if you’d like their information.

I totally get where you’re coming from and I agree. After owning one property in Ontario, even though it’s gone great, I can tell you I definitely don’t want to own a portfolio of properties I’ve never seen, on the other side of the country which is a 4 hour long, $900 plane ride away. There’s not much piece of mind in it.

That’s why I’m ideology on investing has changed to - if you can afford to take the $100-200/month hit to own a quality property in your backyard then why not. You could even dedicated a 10k reserve to that property as a safety net. In a couple years rents will have probably gone up and you’ll be getting a cashflow anyways. My condo in Abbotsford rented for $1150 in 2018 when I first bought it, 3.5 years later it’ll rent for nearly $1500.

Vancouver is like Apple stock and cashflow markets are Pepsi or Johnson and Johnson.

When you’re young is usually the time to invest in the growth stocks.

I definitely don’t want to talk you out of anything if that’s what you want to do. I just wanted to share my thoughts with someone who’s in the same shoes I was in 2-3 years ago and whose walking the same path as me.

Shoot me a message if you want to chat more or you want my team is Windsor’s information.

@Brendan Conners Hey Brendan. I have a very similar story to yours in regards to working 60 hours a week and all that.

I’ll share my experience with you. At 23 I was able to buy an apartment in Abbotsford. I’ve grown up and lived in Surrey all my life but I bought in Abbotsford as I wanted to be able to pay my mortgage as well as still have money to invest.

At 24, I bought my first rental in Windsor, Ontario and that has gone great for me. Its nearly doubled in price (paid 150k) and gives me about $700/mo cashflow as I’ve just upped the rent $250/mo to $1650 now.

I’m currently in the middle of flipping a property in Edmonton as the money in the deal. I have a connection out there managing the deal for me.

Although Windsor Ontario is going great I probably wouldn’t recommend buying out there right now as prices have gone up substantially. I plan on buying another rental this year and I’ll be looking at either condos on chilliwack or possibly a quality condo unit like something close to the water or high up in a quality high rise. Maybe Surrey central.

I know biggerpockets stresses to buy for cashflow however, I feel having a couple hundred bucks of cashflow is a defensive move, rather than an offensive move. No one has ever gotten rich off of $300/mo cashflow. Ultimately it’s either forced or passive appreciation which is going to build your net-worth and that’s why I’ll be buying the rest of my properties here in our back yard. Appreciation isn’t guaranteed but we live in the most beautiful city in canada, probably a top 30 city in the world. Other Canadian retirees and wealthy immigrants love to come here. We have the cleanest water and air quality. Fishing, hiking, camping, snowboarding, beaches, and probably the best, most mild weather you can get in North America.

Anyways, this is just my opinion, it’s totally subjective.

Hi Guys,

I'm living out in Vancouver, BC, looking to pickup a multi-family property in New brunswick. I currently own a rental in Windsor, Ontario and Edmonton.

I'm wondering if theres any specific city i should look to buy in? Fredricton, St.John, Moncton? 

Also, does anyone have a good realtor and/or property manager I might be able to use?

Thanks BP!

Not a bad idea if you're job is providing you more than enough income that you can stomach a cashflow-negative rental. 

@Michael Sogard Still appreciate the input Michael. Thanks!

@Zorya Belanger! Appreciate your reply! I remember i saw you posting on a forum about investing in Alberta awhile back but when i tried to find that post i couldnt find it. Happy to have your input!

My plan is to get a property manager to oversee the project. However, I have two other partners and one of them is currently out of the work force so he would fly out to Calgary to see how things are going periodically. But for the most part, we'd use a property manager.

As for the investor, we plan to go on title and bring our own capital for our first deal just to test the waters and see how things go. I was more so curious because I was wondering how we would scale this business if we had to be on title for every property. I imagine the bank would put a stop to that rather quickly lol. However, at the same time I'm still confused about using a JVA without going on title because technically you own nothing. Do you own rental properties where you haven't gone on title?

And you're definitely right about always using a JVA, even with friends and family. Really appreciate your insight!

Hi BP!

My partner and I are going to attempt to do our first BRRRR deal. We understand how to structure the deal, run numbers on the deal, and most of the logistics.

One thing I’m really struggling to understand is going on title for the property. Now, I believe a typical deal looks like this —- You find a deal, get an investor to put up the capital for a downpayment on a short term loan, renovations and carrying costs. Now, when you go to refinance, should you go on title with the investor or how does that work? It was always my understanding that the investor goes on title (as your debt to income will be too high to do so after doing this a few times) and then you would have a lawyer do up a 3rd party contract stating you own the property and the proceeds 50/50 with the investor

Is there someone out there, Maybe a lender, who might be able to clarify this for me? That would be GREATLY appreciated.

Thank you BP!

@Wendell Fong Amazing! Thanks Wendell, I appreciate it and i'll keep you posted!

Hi BP,

Invest from Vancouver, BC here. My partner and I are looking to get into the Calgary, AB market and we want to start building our network. If any of you have any referrals for a good realtor, contractor, property manager or if any investors would even like to connect, that too would be awesome! 

Just some background on me. I currently own my principle residence in Abbotsford, BC, and a Buy + hold property in Windsor, Ontario. We want to start BRRRRing in Calgary and we already have a criteria for the properties we want to go after.

Also, if you have any successs BRRRRing in Calgary I would love to hear about it