All Forum Posts by: David Steinbok

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At one time in my investing career I owned 2 non cash flowing condos in Toronto. I was short about 600$ a month each. At the time I was ok with that, as i thought they would appreciate. After meeting other investors i sold both and moved into the world of Brrrr and turning single family homes into legal duplexes. A much better and more profitable way to invest. When i went to sell my condo units, there were over 70 other 1 bedroom units for sale at the same time. What a nitemare that was. Good luck

I'm not sure if it's necessary, but I like to have all the invoices for all my maintenance and repairs. When I do my taxes, I send my accountant a spreadsheet with all the income and expences for each house, along with an envelope with all the receipts and invoices as backup. 

Hey, sometimes a listing agent will add a rent roll and expense performance with his listing. You can use those numbers. Other than that, for rough calcs, that you can scribble on a paper while looking at listings or doing while going on a walkthrough, on one side put you rent, or expected rent, laundry money if you have, garage rental if you have. 

On otherside, put your expenses, like mortgage,  insurance, management fee of 8 to 10%. Property tax of 1%. Gas/water/sewage/garbage/electric if you pay that. You can add a 200$ buffer for maintenance and repair. And a vacancy rate of say 6%.  

If you are charging rent plus util, then dont add them in your expense side. 

If you are doing serious calcs, then you can get most numbers from the listing agent. 

Investment Info:

Single-family residence private money loan investment in Edmonton.

Cash invested: $56,000

We did another private loan, using the money from the refinance I did in may 2020. This one is on a $415k house in the Edmonton area. We are getting 16% intrest a year for a total of about 730$ a month positive cashflow. That's great. Deal is closing on march 1. And is a 2 year term.

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

Its our part of our goal this year to create positive cashflow, using what I already own

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

Mortgage broker

How did you finance this deal?

Refinanced money

Interesting.  Dont really know, but I'm sure if you do have to pay gst on the purchase, you may be able to claim it as an expense when you do your taxes

I really dont want my tenents to paint my apartments. I've had them professionally painted and I keep my colour neutral and I dont want to have to repaint when they leave.  However I dont think there is any legal way to stop a tenent from painting a room. You can have a talk with him and get him to hire a professional painter, or have him paint it back to original color before he moves out. 

I rent. No upfront costs, and the rental fee gets added into the monthly bill and is passed along to the tenent. Also then reliance is on the hook for repairs and maintenance.  And if it's really dinkered,  they just replace it. 

Yes,you can live and work in toronto and get a mortgage for another town. I also live in toronto and have properties in oshawa that I used a london mortgage broker to arrange financing for. 

I'm not a mortgage broker, there are lots of good ones on here you can talk with. You could definitely buy a house with less than 20% deposit.  I was taught to always do 20%. And my house has to cashflow using 20% as my number. You can make anything cashflow if you put a bigger down payment, but I dont want to do that. If you dont do the 20%, I think your intrest rate may be higher, and you may have to get cmhc . And I dont think you can refinance until you have 20% equity in the house. Not sure thought,  so you should talk to a broker. 

As for stuff to learn, pick an area you want to buy in, and learn what properties sell for so you know if a house is priced right. Learn what basic renovations cost, so you know how much your repairs are going to be. And learn what your market rents are for your area. That way you can do your calculations quickly in your head as you look at each house. 

So if there are 150 new buildings going up, each with about 200 to 300 new units in each, plus a flood of resale units currently available. Market rents are going down, the condo market year over year appreciation is pretty low now compared to before, I think it's about 4 or 5% now. What would lead me to buy your assignment, and pay you an extra 10k or 15k for your contract. When I can just go to the builder and buy off them. Everyone and there uncle is trying to do assignments, I think builders have even caught on and have added an assignment fee. What if you cant find someone to buy your contract? Are you able to a actually close on that deal? Then what.. are you going to sell or rent it out at a loss. 

If you currently qualify for a 300k mortgage, then with your 20% down you can buy a house for 360k. There are lots of markets where this is still possible. London, kingston, brantford, orrillia, welland, Peterborough to name a few. You have to go 2 hrs out of toronto. The brrr strategy is great. Look for dumpy houses in nice neighborhoods that way you get added value for what ever work you do to the house. If you can, add a second apt so you get maximum revenue and cashflow generated for your property, but if you cant for now, just make sure the property cashflows as a sfh. Get the property rented, use what you learn on BP to get good tenants, I won't get into that. And after a bit of time, once you pay down some mortgage, and you've increased the value of the property, you start the refinance process and get your money out to do it again.  

I'm going to reiterate what's already been said about j.v. partnering. Though it's a great tool to use once you hit the credit wall, I would steer clear at the start and try to get a few properties on your own first. It will be more work, a slower process and a bit more risk, but the rewards are all your and it's your foundation that you can build off of later. Also there seem to be alot of people withno money and no credit, who want to jv as the "I'll do all the work for 50% partner" out there looking for someone with money and credit. Good luck. And there are lots of people who can help you along the way.