All Forum Posts by: Dominika M

Hi all,
i'm setting up to buy my first investment property. Conventional financing is a little difficult. I'll make this deal happen, but i don't know how i'll finance the next property. I'm in for the long game - i'd like to purchase at least 3 in 2 years and have at least 10 properties in 5 years. Canadians, how do you finance your 2nd, 3rd,...10th properties?
I currently have a tiny home in GTA, on which i've been accelerating mortgage payments to pay off 10 years ahead of schedule. I have a job with decent earned wages, but only one income for the family. I have savings for a very decent downpayment on investment property. My current bank will only give me about $100 mortgage because they are mostly looking at my earned income (not considering downpayment or future income from rental.
I went to a mortgage broker who can get me more mortgage but at significantly higher % (4.5% instead of 3%).

Canadians, how do you finance your 2nd, 3rd,...10th properties? (After that, i figure i will know the game).
Thanks a lot,

Hi Amy,

Welcome to BP. Although the discussion is mostly on US markets, there are some Canadians here and I hope we can have more discussion of our crazy markets.

I'm also starting out and I'm in Brampton. I'm aiming for a much lower priced house because it's already very difficult to make good cashflow in the GTA area. My thinking is that you'd have to charge a really high rent (around $3500 per month) to just get positive cash flow (rationale for this below). But i haven't done this, i really welcome some experienced peple to comment on market for high price rentals.

Rationale:
I used the rental income calculator from BP, and assumed 20% downpayment, only $400 monthly for maintenance and repairs, $350 for property taxes monthly. I had to move the rent up to $3500 to make $22 cash flow per month.

Hi,
i'm an environmental professional - doing compliance work for a manufacturing company (reporting on pollution). I do a lot of excel work and love spreadsheets - i hope that will come in handy.
I have been making an "investment" in my education by getting another degree and getting some professional designations, but then i decided to take Rich Dad's advice and "mind my business". So here i am, trying to learn from all of you.
I hope we find out from other people whose day jobs are totally unrelated to REI.

Hi all, I can't use the @mention. When i type @Joshua Dorkin nothing special happens (just looks like normal typing). Can't right click on it for special options. Tried on quick reply (in a forum, i can't see the option for advanced reply at all). Joshua, i can't even PM you, even though we're colleagues. I'm using internet explorer 8 on windows 7 on desktop.

Thanks, once i learn the basics, I will definitely try to get some of that good cash flow in US.

Mehran, thanks. I heard you on the podcast recently - great story.
Shahriar - how long have you been actively pursuing a deal? Are you considering the US as many people are recommending?
Dominika

Thanks a lot for the welcome. Thanks for the advice on looking at US - I'm starting to research the tax implications of that.
Dominika

Hi all, Thanks for making this great site. What a great community. Although I'll be trying to start my investing in Ontario, Canada, I can't help hanging around this site, because it has so much great general information. I wanted to get into buy and hold, but it seems very difficult to get cash flow in this market (the average transaction price for houses and condos combined last month was $533,797). Any advice? To anyone in the Greater Toronto Area - can you recommend real investor clubs that are more about info and networking and not just selling me a "system"? Thanks a lot, Dominika

Hi all, In my area, the average transaction price for houses and condos combined last month was $533,797. Using your rental income calculator, i did the numbers for a small condo, and came up with cashflow of $-435 ($200,000 buy price, $1200 rent price - full details below). That clearly is not a good investment. I'm using it here to illustrate that it seems like a difficult market to start investing in. My question: is this market too hot? Can you give some guidance on setting criteria for making an investment in this market? (The market is the Greater Toronto Area in Canada, but the situation must apply to some US markets). P.S. This is an awesome website, thanks a lot. Dominika Cost Assumptions Purchase Price $200,000 Land Value (25%) $50,000 Building Value (75%) $150,000 Improvements $5,000 Closing Costs $5,000 Total Cost $210,000 Financing Assumptions Downpayment 20% Finance Amt $160,000 Downpayment Amt $40,000 Interest Rate 3.0% Mortgage (Years) 25 Mortgage Payment $759 Cash Outlay $50,000 Year 1 Revenues Rental Income 14400 Vacancy/Loss Rate 0.1 Vacancy/Loss Value -1440 Gross Income 12960 Expenses Property Taxes 2400 Insurance/condo fee 4200 Maintenance & Repairs 1440 Utilities 0 Advertising 0 Administrative 0 Variable Cost PM 1036.8 Fixed Cost PM 0 Other 1 0 Other 2 0 Total Expenses 9076.8 Expenses as % of Gross Income 0.730333333 Net Operating Income (NOI) 3883.2 Cash Flow NOI (Cash Available) 3883.2 Mortgage 9104.857226 Total Cash Flow -5221.657226 Cash ROI -0.104433145 Equity Accrued 4364.545064 Total Return -857.1121625 Total ROI -0.017142243 Cash Flow / Mortgage Ratio 0.426497627