All Forum Posts by: Cory S.

Thank you Greg and Marc for your advice! 

What if the lack of cleanliness of causing a musky smell? 

Hey everyone,

 For the first time, I am re-signing a tenant for another year! I have written up a new lease agreement as there have been some changes, and will be doing a walk-through inspection dated the same, but of course because we cannot see everything we will mostly just use the list from last time and do a quick walk-through check. 

 The fella has been a good tenant and I have no complaints except that the bathroom was filthy a couple of times that I was there to do some work. Of course I will be checking that with the walk-through. Do I have any rights or anything I can do to ensure that it is properly cleaned going forward? If it is filthy, can I hire a cleaner and take that from his damage deposit? Would he repay that amount now with the new damage deposit? I don’t think I want to get into that, but I would like to check the cleanliness of the apartment for sure and comment on some actions that may needn’t to be taken there. Even if I have to pay a cleaner. If he says he will do it, should I not that in the contract or go back to look? 

Any suggestions? 

Thank you! 

 Howdy everyone,

 Just a quick question regarding yard maintenance, such as shovelling and mowing the lawn in a shared rental property with a main floor suite and a basement suite. 

Who would you say is responsible for this maintenance? I find that people who are applying for the basement suite would like to use the yard, but don’t seem to think they should do the maintenance. The main floor folks usually expect it, but I don’t imagine they expect to do it all?

 What about raking and trimming trees back or weeding gardens? Are those things also requirement of the tenant(S)? 

Thank you so much everyone! I found insurance though Co-operators and even cheaper through Insureline! Less than $160 haha. I had a bit of a panic there when companies kept telling me commercial insurance for $500. It may have been the way I was wording it! Regardless, thanks for all your help!

I’m having an issue getting my 2 units insured. Is this classified as commercial? Multi family? What’s a reasonable rate for insurance? The insurance brokers that I have talked to sound confused and don’t know how to insure this. I have either been quoted $500/month or straight up refused. Any insurer recommendations for this (Edmonton, AB, Canada)? Any tips or info to better educate me? This is my first suite and I legalized it to get proper insurance coverage, now I feel hooped! Thanks!!

one more thing! How do I tag people? I would like to be able to reply to anyone who comments.

Hey everyone,

Right now, I am feeling very thankful to have bigger pockets to go to for advice! Thank you in advance for your replies! I am hoping to write an offer today if I choose to go ahead with this purchase.

I am looking to buy my first home. This home seems great ($500-600/month in my pocket and I believe good resale value), but I'm really afraid the market crashing due to oil prices and how that affects the economy here in Canada. The vacancy rates should continue to go up because people are leaving to go back home to places like Ontario - I'm looking to buy in the oil run province of Alberta. Many of you are probably thinking that since I will live here and it is a long term investment, that I should not worry about the market. Unfortunately, I am a young, single woman without a lot of savings who fears for my own job security in these downtimes as well. I work in middle management in the construction industry, so if new construction is widely affected my job may be affected as well (I had an executive tell me that people who aren’t involved in day to day operations are usually the first to go in hard times – I run our change management initiatives, which are a focus when a company has money to invest and is looking to grow!

My question is twofold…

1)Am I right to think that this property is a good buy? And is it a good choice for a first time, single homebuyer or is the risk too much? Are there better options for me?

2)Should I hold off and see where prices go in the next year? There will always be more houses like this right…? If I did this, I would probably buy gold for now – which I believe goes up as the economy goes down in general? Although… if the economy goes up, I may lose money and my change to enter the real estate market!

Property info:

-Neighbourhood is safe, family oriented, homes build in 80’s but many on the street have new siding and fantastic curb appeal (the one I am looking at has older siding but still nice curb appeal), bright and very wide street unlike most in the areas I can afford in

-Three bedrooms 1 bathroom upstairs (bi-level), newer kitchen, good condition overall, 1 bedroom suite in the basement with separate entrance, storage, large bright windows and high ceilings, good condition – ready to go minus framing in and adding one door (easy fix). Huge yard, paved driveway, no garage (most comparables have down detached).

-Purchase price $330,000 (fair price)

-Upgraded comparables with garages are listed around $350,000-$360,000 (may not have bsmt kitchen)

-Not-upgraded comparables with garages, without bsmt kitchen listed around $310,000-330,000

-Mortgage, taxes, utilities, CMHC approx. @2000-2200/month (lets go with 2200)

-Basement rent $900-1000

-My share = $1200-1300 (I currently pay $1800 for rent so this saves me $500-600/month)

-Needs new hot water tank and furnace. Shingles look good and good condition elsewhere.

-Little work to be done (I am not handy), move in and start bsmt renting right away!

It may not be a heck of a deal, but I save $500-600 per month vs. renting my parents condo.

Key concerns:

-Prices to go down in the near future?

-Rent to do down in the near future?

-Laid off from my job and cannot afford payments. Could easily get a job making $500-600 less/month then I do now, so at least would be break even on the property with a tenant downstairs for what rents are now.

-Interest rates double or triple in the coming years and I cannot afford the payments

***Interest rates go up in an up economy though right, so points 1-3 are one scenario and point 4 would be an alternate scenario right?

Are these risks risks I am just going to have to bone up and take if I want to become an investor, or are there better options for me? I was raised not to take risk, but I don’t feel that is the way to get ahead. I am having a difficult time determining how much risk I need to take to start moving ahead.

Originally posted by @Roy N.:

Originally posted by @Cory S.:

Hello all! 

If I may ask a question... as a new investor I don't feel extremely confident asking a realtor to bring up solds for me. How often would you ask for such a "favor" when you haven't really done anything for them yet! Ie: bought through them. The search for a good deal can go on for quite sometime!! 

Don't they get tired of helping and hoping? 

Cory,

If you are working with a real estate agent that is investor friendly, or an investor themselves, as your buyers agent, they will likely have little problem with pulling comps.  When we are looking at residential real estate (1-4 units) we do everything we can to {dis}qualify a property on our own and only ask for sales history and comps when we plan to make an offer.

 Hi Roy!

I'm not sure how to work the "tag" feature yet, so hopefully this works! Thanks for your reply! Hopefully I have an investor friendly realtor! I guess I'll find out! I don't want to bother her too much and, as you mentioned, only when I plan to make an offer. I guess where I am a little stuck here is that I'm not sure how to figure out the market value of the property without sold properties to use as comparables..? I don't know if I want to buy until I know what I think it's worth right? Or until I know I have negotiating room, which I think comes from knowing the history of the listing and original purchase price - again from the realtor. Perhaps I am just having an hard time seeing how I can make a decision without the information the realtor has! I used to be a realtor a number of years ago and using the information realtors have is how I was taught to evaluate property. It's possible that that training has made it hard for me to wrap my head around any other way of evaluating property, but I can't even think of how else one would go about it. What about in private deals? I wish I didn't completely lose track of what is going on in the market and with property prices... I was just starting to get the hang of it when I had to leave real estate! 

Do you have the mandatory Buyer Brokerage Agreement where you are? How would one get around that so they do not have to buy through the realtor all the time but the still realtor feels like it is worth their time to help? Does this just go back to finding one who understands investors? 

Sorry for the long message!

Hello all! 

If I may ask a question... as a new investor I don't feel extremely confident asking a realtor to bring up solds for me. How often would you ask for such a "favor" when you haven't really done anything for them yet! Ie: bought through them. The search for a good deal can go on for quite sometime!! 

Don't they get tired of helping and hoping?