All Forum Posts by: Daniel Badke

Wow, so informative! Thanks for your time Nathan!

Thanks for your input Kenny!

Questions
- Currently I have 1 property.  A 2 bdrm 1 bath condo - 700 sqr ft.
-  Located @ Delton / Elmwood Park area.
**  What do you mean by price range? Are there different standards when it comes to management services? 
- I could use a PM asap.   
- No special accommodations required.
- Honesty and integrity is key to me.   I am a looking to grow my portfolio in Edmonton and with that, my relationship and business with a property manager.  I am by no means looking for the cheapest solution.  

Suggestions
- I have asked a few agents and they seem to lead little to no where and are often just another agent in their office that runs a management company because they can.  I will keep searching though! :)
- Didn't think of this.  THANKS!!!
- While there is not much data on Zillow for Edmonton, Canada I can use alternatives.  Another item added to my check-list on investigating possible PM's.

Thanks again Kenny!  Much appreciated!

I am looking to see if anyone can suggest a good property management company or an individual that works as a property manager in the Edmonton area.   I have checked yelp and google reviews to form a shortlist but I would love some referrals to help me make my decision.

Thanks for any input!

Thanks Ivy! 

Just to add some more info, the property was last assessed at 112k but I am not giving that too much weight.  Currently in Edmonton there are way more sellers than buyers.  Lots of properties sitting listed for months if not close to a year so I went through lots of condos to find the right one.   This price range isn't the most glamorous so it took me a little while to find a building+condo that didn't wreak like cigarette smoke or look dilapidated and have sketchy individuals pacing in front of or around the building.   Recent comps sold put my purchase price around average or below average for a 2 bdrm of that size in that area (based on price per sqrft).  Buuuuuut it is not your average building/condo.  Well kept, quite, actively promoting no smoking in front of the entrances, good minutes, what looks to be a very solid reserve fund and a good location.   I could have moved a bit further downtown for an extra 100-200 rent and probably 5-10k in purchase price but the quality of condo and tenants would drop.  I know Edmonton has a high crime rate and thus I am trying to avoid any negative encounters/interactions by renting to a different demographic.  (currently a family with 2 young children that live in the condo).  Worth noting the condo building is 60% owners and 40% renters.  And there is a decent sized balcony.  Condo sits facing a main road but is extremely quite.  Can't hear traffic one bit - Windows were redone in 2016 :D.

Anyways thanks to anyone who reads this!  I appreciate any advice or just to talk shop.   Please feel free to send me a message.

PS.  Hinton is actually where I stayed for the night when I went to Edmonton to view some properties.  Nice little town but unfortunately it was blanketed in forest fire smoke while I was there.....  

Little late to the party but figured I would tag my name to some Edmonton posts in hope that other people from Edmonton can find me.  Currently closing on my first condo in Edmonton, and looking to grow.   I live in the Vancouver area so I am investing from abroad but plans to move to Edmonton eventually are in the works.   I am looking to network and talk to others about anything real estate related so feel free to message me about.

Hey Daniel, I would agree with the others and say BP is extremely useful for Canadians!  I am a new investor and BP has been a huge asset for me.   Listening to the podcasts has really helped me the most.  Getting that exposure to real life scenarios helped me gain the confidence and knowledge to put pen to paper.   But that is just me :D

Fun Fact - In Canada we have T4's instead of W2's and we do not have the 1031 exchange or anything equivalent.

Investment Info:

Single-family residence buy & hold investment in Edmonton.

Purchase price: $74,000
Cash invested: $75,215

2 Bdrm, 1 Bath, 700 Sqr-ft condo. Currently renting @ 850 per month (Current tenants lease ends 09/2019). Then rent will be raised to market value @ ~1050. New paint and refinishing before rent raise. Install a bathroom fan asap. Closing July 5th 2019.

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

Between living in Vancouver and having terrible credit I knew I needed to shop somewhere else to fit my price point. Why Edmonton? I have family and friends there (providing some connections to learn about the markets). Cap rates in Edmonton are relatively high compared to other major Canadian cities. But mainly it was the safest market I could get into ASAP.

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

I am working with a family friend who is a realtor. She has more than 25 years experience in the Edmonton area, tons of great reviews, very happy with the process so far. Property listed at 92,400 approx 250 days ago. After 3 price drops to 84,000 I entered the market and made an offer of 71500. After 3 counters from each side we settled at 75k. 75k was actually my target price. After addressing some issues we settled on 74k plus them fixing some misc issues.

How did you finance this deal?

I was given cash as a gift from my grandparents and I can not get financing for a mortgage.

How did you add value to the deal?

Motivated Seller - quick closing all cash offer. Refinish, Repaint and reassess property value, pulling out home equity loan for next property asap. Currently building credit and working on my getting that T4 bigger for the mortgage approval, but I would say this property acquisition was more of a value add to me. Where I can use it as a stepping stone to the next property and my first mortgage. Showing that I can profitably manage my own property should help with lenders. Plus I gain XP.

What was the outcome?

Closing on the property July 5th.

Lessons learned? Challenges?

I have learned many things this first purchase but mainly would be....... the process of purchasing a condo. I.e How to talk to your realtor and what to expect from them, reviewing inspection reports and condo docs, what to ask and when to ask it, how pictures can be deceiving, prices can be deceiving, listing info an be deceiving.... etc etc. Trusting the numbers. Learning how to analyze potential repair costs. Getting all the basics down and putting faces to names.