All Forum Posts by: David Steinbok

As an update to this thread, I have just succeeded in evicting another tenent for non payment of rent. It took 3 visits to the landlord board, but the judge finally gave an eviction order. They moved out on Jan 31. I filed a claim with small claims court and was able to serve them at the house as they were moving out. I then followed them to their new address and wrote it down, just incase they miss court and I have to serve them again. When we go to small claims court I will be asking for any back rent, court fees, unpaid utilities, repairs, and garbage removal and cleaning. 

It's a lengthy process but eventually it works. 

confirm rent rolls. Ask for leases and confirm rent with tenants. 

Confirm expenses. Ask for 2 years ofBill's. 

Ask for zoning. Or esa certificates and fire inspections. 

Ask about any differed maintenance and get 3 quotes on any major work that needs to be done

 There is more but that's what I can think of off the top of my head.

there are a few things you can do. One house I bought, it was very hard to get financing, so i bought the house with a 50% down payment, and after i finished renovating and got it rented, i was easily able to qualify for a mortgage. And i refinanced the house to buy another. I would not be buying houses in different parts of Canada and flying all over to Reno them. If you are in Edmonton and it's too expensive, look at the surrounding suburbs. As for the cmhc play, i always put minimum 20% down. Otherwise once you have more than 5 properties you will start to mess up your debt ratios.  

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350
Cash invested: $170
Sale price: $575

was a 3 bed house. An investor tried to Reno the basemento & his contractor took out the support beams and the floor collapsed. I bought the house from him. Took me 90k to put the house back together. Took me 5 months and was very difficult. inspectors kept failing me because the old stuff didn't mesh well with the new stuff
I replaced all duct work. Electrical and all plumbing. cut holes in foundation for new big windows. The 2 apts turned out amazing and the house generates 2700$ mth.

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

The house was basically destroyed.

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

Friend that messed up and wanted a way out.

How did you finance this deal?

Bank

How did you add value to the deal?

Built 2 bed basement apt

What was the outcome?

Awesome house.

Lessons learned? Challenges?

This house had every issue possible. Learned that everything can be fixed. Just taked time and hardwork.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350
Cash invested: $170
Sale price: $575

This was a 3 bed house. Another investor tried to Reno the basement and his contractor took out the support beams and the floor collapsed. So I bought the house from him. Took me 90k to put the house back together. Took me 5 months and was very difficult. The inspectors kept failing me because the old stuff didn't mesh well with the new stuff
So I replaced all duct work. Electrical and all plumbing. And cut holes in foundation for new big windows. The 2 apts turned out amazing and the house generates 2700$ mth.

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

The house was basically destroyed.

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

Friend that messed up and wanted a way out.

How did you finance this deal?

Bank

How did you add value to the deal?

Built 2 bed basement apt

What was the outcome?

Awesome house.

Lessons learned? Challenges?

This house had every issue possible. Learned that everything can be fixed. Just taked time and hardwork.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $385
Cash invested: $150
Sale price: $575

I bought this house the same month as the last one. And is the reason why I quit my job. I had 2 houses to build at the same time. 3 bed sfh. I cleaned upstairs and rented it very quickly. Then build a 2 bedroom basement apt. I would work a few hrs on this house and a few hrs on the other house every day. 2 month later I finished and refinanced it. 2 apts rent for 2900$ plus util.

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

Agent

How did you finance this deal?

Bank

How did you add value to the deal?

Built 2 bed basement apt. AMD legalized it

What was the outcome?

Awesome house. A d money to buy more.

Lessons learned? Challenges?

I learned how to wire an electrical panel by myself. And was now building a good reputation with the different inspectors .

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $360,000
Cash invested: $150,000
Sale price: $625,000

This was another 3 bedroom sfh. It was a dump. I got people to move in the first week I had the house. And painted, tiled and built a laundry room as they were moving in. I then gutted and spent the next 3 months building a legal 2 bedroom basement apt. I quit my day job to do this house. Once I finished I refinanced at 625$ and got all my money back. I rent the 2 apts for 2700$ plus util.

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

Real estate agent.

How did you finance this deal?

Bank

How did you add value to the deal?

Built 2 bed basement apt

What was the outcome?

Refinanced and used money to buy 2 more houses

Lessons learned? Challenges?

My plumber was a flake and failed his inspections and then never showed up after. So I found a much better plumber that I used to this day.

I own 2 properties right beside each other. They share a common driveway. I bought 1 house and while renovating the neighbour asked me to buy his. I was almost able to buy a third but it didn't work out. If you purchase both under your name then the property becomes 1. Which will make it very hard to sell at a later date. You will have to sever if you only want to sell 1. We got around this by having 1 house in my name and one house in my wife's name. So houses are owned by different people.

Wow I'm surprised no one has responded yet. if you have checked your numbers and find that they work than go for it. As for financing the deal, if you don't have the down payment you need a jv partner. As you stated giving someone 10% on the 80k would eat up 8000$ of your cashflow. Instead offer them 50% of equity and 50% cashflow. At the end of every year what you have left in bank you split. And when you refinance in 4-5 years, I think that's what you said, then you split the refinanced money 50/50. They would essentially get most of their original deposit money back at that point. Hope that helps. 

I echo the above comment. Make an area for storage and a coin op laundry room. Also keep a storage area for yourself.  And keep some extra fridges and stoves. You can find used ones on kijiji and just bring them up when one breaks.