All Forum Posts by: Chris Baxter

@Cameron Chambers

Buy a property that has value add potential. Generally a property that is poorly managed or is in need of some TLC

Renovate the property to increase rents or decrease expenses (or both!)

Rent the property out at post-renovation market rent

Refinance the property based on its new financial position

Repeat over and over and over, leveraging the new equity as downpayment on the next property

@Chris Perreault I invest for cash flow, with appreciation treated as a bonus.  There are markets with larger populations (~50-125k pop) that offer good returns with a larger tenant pool to consider.  I would also consider deals in smaller centers that are satellites to larger cities (ie Leduc to Edmonton, Shediac to Moncton, Truro to Halifax, etc.)

Thanks for this insight, David

Thanks Bjorn... roofer is licensed by the local governing body. He was already vetted by my PM, but I always like to check in with others when approaching something I've never seen before.  Roof has been redone several times; building is 40 years old.  Quote is ~$22k USD (or ~$4 per sq ft)

It's time to re-roof one of our MF buildings and I don't have any experience dealing with flat roofs with torch-on membranes.  The surface of the roof is ~5500 ft sq, and the building is in a cold climate (nice summers, snowy winters).  The roofing contractor is proposing that we go over the existing roof with 2ply modified bitumen. If you have any insight as to whether this is a good idea, I would be happy to receive it. Here are the details:

• Clean any loose debris off roof and remove vinyle flashing at roof edge. Dispose of material off site.
  Supply and install mechanical fasteneres 24" o.c. at roof edge perimiter, cover with 13" wide membrane torch applied.
• Supply and install Sopralene Flam Stick base sheet membrane to seal roof edges, come with Elastocol Stick primer.
• Supply and install slope insulation cricket, 1:1 ratio, between roof drains, mechanically fastened.
• Supply and install Soprafix Base 630 base sheet membrane to seal slope insulation cricket, mechanically fastened
• Supply and install standard colour 0.026" (24g) gravel stop metal flashing, come with 6" reinforcement membrane
• Supply and install granules Sopralene Flam 250 GR cap sheet membrane, torch applied.

Thanks!

@Bo Taylor The numbers look good (I like DCR of 1.4), but I'm not sold on the location. I did my undergrad at Queen's many moons ago, and the property is 12 blocks further than the furthest I ever lived from campus. That being said, Kingston is more than just universities and prisons, and your ability to value-add (especially with a third unit) sound promising.

If it helps, we are also sitting on a pile of cash waiting for the right opportunity.  With $500k, you can get into mid-sized MF deals and get a much better return than buying a SF home.  There will be opportunities when the financial realities settle in.

"LOGICALLY speaking, I shouldn't be investing now."... now you've answered your own question. REI is about logic and numbers NOT emotion (which is how homeowners buy).

@Jasmine May  have you accounted for utilities (water/sewer), repairs, property management?  Estimating all of these (I don't invest in Halifax and therefore don't have these dialed in) the property doesn't make sense for me (note that I also don't buy SF residential). If you are happy and confident with your numbers, that's really all that matters.  As noted by @Theresa Harris, don't overpay for FOMO (fear of missing out).   Good luck!

@Jasmine May  This property isn't going to cash flow, even if the tenant pays utilities so, no, I would not personally invest in this property.

Actually, there are several tax benefits (and strong liability benefits) to buying in a corporation in Canada... best to chat with a knowledgeable accountant before selecting an ownership structure.  One simple advantage, for example, is that ownership can be transferred via the sale/transfer of shares without triggering property transfer tax.