All Forum Posts by: Chris Baxter

Quote from @Adrian Beth:

Thanks for the clarification. The application of the1% rule was going to be next question. You said sf homes are harder to cash flow, so would a duplex or triplex be a better choice for a 1st time investor?

The larger the number of doors, the less likely you'll be competing with emotional home owners when buying. With more income streams under 1 roof, the easier it is to cash flow. 

Quote from @Gurjot Grewal:

Thanks for the reply @Chris Baxter what were the consequences of introducing yourself to your tenant ? 

Also if you dont mind me asking, knowledge in what aspect has given you confidence in scaling sooner?   

Buying a 6-plex is really no different than buying a SFH in terms of effort.  While due diligence and financing are different for commercial properties, effort remains similar.

Fantastic question...

1) Mistake: communicating with a tenant when property management was in place. I thought I was being helpful by seeing why the tenant was constantly late on rent... best to let PMs do their job!

2) Regret: scaling slowly and cautiously.  We spent a decade buying condos and duplexes before getting into MF.  I would have made the jump sooner knowing what I know now.

Still learning every day :)

@Adrian Beth.  Go back 10 years and it was very easy to find properties that match the criteria in the books you are reading (1% rule, etc.).  Cash flow is now much more difficult to achieve in many markets, especially in SF homes. For a house that costs $500k, you'd have to collect $5k in rent monthly to pass the 1% 'rule'.  This is why I say cash flow is not the norm (but should still be your goal).

I personally look at appreciation as a bonus and don't bank on it when making investment decisions. 

@Adrian Beth welcome to BP!  There are many threads on NB, specifically Moncton.  The forum search button should help here.  Many markets (including Moncton) that once had lots of upside are now quite tight. A common thread in the Canadian forums is that cash flow is not the norm, but can still be found with a little creativity.  Post a few specific questions and you'll get some good feedback here. 

Quote from @Gurjot Grewal:

Perhaps I have gone a little overboard on the analysis, I will take that into consideration. I am definitely open to smaller centres in other provinces. Are there any specifics that you would suggest I focus on in terms of; population size, hours from a large city centres etc ? 

I'm, personally not worried about being close to a large city centre. I do like screening by population growth and by price/rent ratio, and want a diverse economy (no pulp mill towns, for example). My broadest filter (for long term rental) is no market with rent control.... that takes out many provinces (including BC and ON) .

That's a large collection of metrics... decide which one is the most important to you and then slice your data with the other metrics to see what jumps out at you.  Your list has lots of large centres (with the exception of Sydney). Have you considered smaller centres in other provinces?

@Gurjot Grewal Welcome to BP!  I haven't read that particular book by Don Campbell, so can't comment on whether it applies.  What metrics are you using to analyze a market? How are you deciding which markets to analyze?  

@Chinyere O. Welcome to BP.  You'll find the most value by participating in the forums, which are free.  There are lots of low-cost property analyzers out there; I personally use Landlord's Cash Flow Analyzer, which is Excel based and costs $99 (I am not an affiliate, I just like the tool). They have a Canadian version. When coupled with a mortgage calculator, I have everything I need for analysis.

It's always a good time to invest in real estate, but not all markets or strategies always make sense. Pick a market that supports your strategy and goals, and then build a team in that chosen market. If you share a little more about your goals and your 'why', you'll find lots of helpful folks here to provide advice. 

Quote from @Scott E.:

I haven't been active on here for years but just getting back into it. I haven't received those DMs yet but imagine I will as I become active on the forums again.

Why not just help them? Or advise that they post their question in the forum for more well rounded feedback?

I often direct people to post in the forums so that they get feedback from a bunch of investors (instead of 1).  There are only so many hours in the day and I ultimately have to spend my time helping those that are also helping others in the community here. If I get a DM from someone with no profile and 1 post, they haven't fulfilled their community role and I am less inclined to respond with help.