All Forum Posts by: Dea Chu

@Okeoma M.

Hi there! I can relate to you once again, as I have a spouse who is happy to let me think about investing and real estate, but tends to glaze over a bit when I delve into the numbers and analysis. We first got on the same general page about investing and making our money work for us when I started to research how we could become financially independent. He loved the idea of financial independence and wanted us to achieve it asap. 

I find he helps keep me grounded when I do start to get into analyzing a property. Usually I will give him the pros, he will give me the cons, and we consider both sides until we have come to a yes or no. So far it has only been on which places to make offers--we have not yet purchased our first property.

You say he is frugal which is great! Does he do anything like track his own/your net worth to see how you're progressing toward financial independence? I find seeing net worth increases to be very rewarding and motivating. My spouse, though frugal, didn't have a lot of savings, but since he has been tracking his net worth and seeing the savings grow his motivation and interest have increased a lot. Have you talked about what kind of income you need coming in from cash flowing rentals or passive investments in order to not have to work your day jobs? Having that number in mind and what it will take to get there may help too.

Hey @Nathan Boulet. Do you hire contractors do to the reno's or do you and your dad and brother take care of the lion's share of the work? And are you able to find these distressed properties in nicer neighbourhoods? Having lived in Sudbury, are there any areas you'd definitely steer clear of?

Way to go @Nathan Boulet! I am in Sudbury. I have yet to purchase my first property but will keep an eye out and try to find something good! I think prices here are generally a bit higher, but likely some deals could be found! Are you or any of your family realtors?

@Jay Hinrichs

Hi Jay, yes, from what I hear landlording isn't for everyone. Since I am a renter now, and happen to rent in a large, well-managed building complex, I see how things can be done very well. I imagine good cash flow helps with this! I have also rented an apartment from an aspiring country singer who was usually in Nashville trying to make it big time instead of managing his own property in southern Ontario... Anyway, I hope the right property comes along, and I have contacts in the local market I could chat with for advice. We will see how it goes! I do have some investments in REITs right now, so I have some exposure to Canadian real estate. 

@Maggie Tasseron

Maggie, it sounds like you have lots of experience in the industry with exactly what @Stephanie D. and folks like myself are just starting to try and get into. How did you get your start in RE investing and land lording?

Thanks @Marco Santarelli! I was using a total of 2% for M&R but will up it to at least 3%. BP is definitely giving me some good inventive to get more serious with studying the market and doing my homework. Do you invest in RE in California? My aunt used to live in Santa Ana. She moved to West Virginia, and now back to Canada...It would have been nice to have an excuse to get out to California!

@Stephanie D. You'll have to keep us updated about how the purchase and new role as a landlord suits you!

@Okeoma M.

Great advice Okeoma! It is fascinating about the mentality of male vs. female investors, and though it can be an uphill battle, it's nice to have a forum to explore and learn from in BP! Well done you for being conservative and still making things work. So the 2% covers your maintenance and capex? That's assuming that amount will be enough to cover the estimates you receive and big repairs you have to pay for? In my estimates, I'm using 1% of asking price for maintenance, and 1% for repairs, so I think I'm on a similar track. How far from home are you investing? House prices in Ontario/Canada are pretty expensive and it can be difficult to get decent returns, especially if you are conservative. I'm looking for something more turn-key than requiring rehab, so the prices are a bit higher still.

And to tag people, just type @ followed by the first few letters of their name. The tag will pop up in the bottom of the dialogue box that matches the name. Click on it and it'll become blue highlighted tag in the dialogue box!

@Stephanie D.

 Good for you! Inspiring! And it seems like being a part of BP is a good step so you can get advice if/when needed!

All the best @Stephanie D.! As a fellow new potential investor looking for my first deal, I understand your hesitation and worry. I imagine as a landlord you'll have good experiences and negative ones, but you'll always be learning how to do things better, and if you don't think you're cut out for it after all, you can always sell! Are you focusing on purchasing a property in your area? I know in my part of Ontario (Sudbury) duplexes tend to sell pretty quickly as long as they are relatively well maintained and someone thinks the numbers can work.

Great advice @Okeoma M.! Can you give some more details about how you estimate your maintenance and capex costs, and how you manage a capex account for a property? I know capex = capital expenditures, so I assume you would want to allot an amount each month that goes into a pot for big things like windows, roof repairs, furnace replacement, etc?

Thanks @Thomas Lorini, I will get on it! Can you explain what you mean by self-manage? I imagine it means you hire/pay contractors to do maintenance/yard work/repairs and such? And you would get paid electronically instead of worrying about having someone to pick up rent cheques for you?