All Forum Posts by: Elijah ROberts

Depends on your situation. You could buy a cashflow positive property, sit on it and wait to appreciate as it generates income for you. If you have the time to trade, you could put into strong dividend stocks like $MSFT and buy-write call options on them. Put it in TFSA and buy growth - income ETF portfolio and rebalance once every 6-12 months.

But you know your situation. He asked what YOU would do, not what he should do. In my opinion this typeof question can be very helpful if people actually answer it, like the guy that said close on 4 duplexes in Killen. That doesn't mean the op is gonna do that, haha.

It boggles the mind that people can't seem to understand that.

I guess alot of things boggle your mind! But if this is the case, then I'm not surprised you haven't provided the OP your response / ideas, other than jumping on other people's contributions as a comment police. But again, it's all about the mind! Thats what separates one human from another!

I'm sure anyone with a mind that doesn't get easily boggled would deduce from my commentary as to what I'd do.

touche! And you're right, my mind is easily boggled.

Here's my answer: If I only had that much liquid, I would buy an investment property East of Utah in a city that fared well during the great recession. I'm sitting in cash right looking for places to invest. I keep looking at deals that seem promising then find a reason not to move forward. I plan to keep looking until I find something that suits me. My business model is sfh rented by the room to students and maybe mf. Prime states of interest are Ohio and Texas.

I bought houses in Sacramento in 2006 and 7 that sold in 2011 for 1/3 of what I paid. I fear we are on the precipice of another big correction, but not half as bad as that. Then I keep thinking and overthinking that I must be wrong, because of job growth numbers and other positive signs for the economy.

I kicked *** by buying properties for cash (couldn't borrow conventional money because of recent short sales) in 2012(Sacramento and Tahoe), 2014 (Sacramento) and even 2021(San Diego). Sold the last one last summer.

I think the fear of a correction is all natural and justified considering the current environment. My attitude though, and I couldn't be wrong, is that it shouldn't matter as long as you can have them cashflow positive AND you are using the right investment vehicle. I am not sure of what vehicles you have in the US, (sorry, I am Canadian), but I use a Company here to own all my Real Estate. All my purchases are buy and hold (maybe forever); so, if I buy at high price and the market corrects making my property's value less, I will still be able to use Capital Cost Depreciations from the high book value of the property. Overtime, the Book Value will be depreciated to meet the corrected market value.

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Quote from @Ryan Rock:

Quote from @Elijah ROberts:

Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

It boggles the mind that people can't seem to understand that.

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Quote from @Austin Sisk:

If you were to wake up tomorrow with $200k, what would you do with it to generate income and set yourself up for the future?

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Quote from @Amanda Scheller:

Hello everyone,

I bought my 4 unit building for $175,000, Saint John NB, in 2019 I could sell it now for $450,000. Rents together are $3400 each month. A home run i would say.

Im moving to San Diego next year and want to buy a house hack but its insanely expensive. I have analyses paralysis and have no idea what to do.

Do I sell and pay capital gains and dump the money into a different market or do i refi and buy something else ? Should I be a private lender since rates are so high?

My gut says don't sell and keep buying but just feeling very stuck. Help!!! any advice would be amazing!!!

Thank you

I'm not expert in Real estate, but from a business perspective, if you sell, you'd have to pay capital gains tax. The capital gains will be subject to (450k-175k) =275,000. Not sure how much they'd tax you, but I imagine NB Capital Gain is at 50%. On the other hand, you could refinance at 60% market value, you could pull out 270K without the burden of Tax, your house will still have good cashflow with the mortgage of payment on 270k.

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Vancouver, British Columbia

Quote from @Jason Ridout:

Talking to a mortgage broker that specializes in investment portfolios is a good first start.
Try Keaton Kirkwood.

There are cash flowing properties on Vancouver Island right now. I know of a few in Port Alberni and few in Nanaimo that cashflow well, even with the high interest rates.

There are creative ways to put properties in hold cos that will enable more mortgages.

I'm happy to hop on a phone call with you and hopefully help solve the problem. I closed on my 6th and 7th in April and know some tricks.

I will reach out when I'm ready for the next one. I am fixing Last Year's Balance Sheets for related companies to allow me to go into the market after I pay the Tax man his dues!

Thanks in advance!

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Vancouver, British Columbia

Quote from @Tyler Stiller:

I had the same problem with my portfolio I was at 3 rentals and wanted to keep going and I was tapped out. I have explored different markets, and now I'm at 8 rental properties, all bought within the last 12 months. It's been really great looking at the other markets.

In the other markets as well, we can look at commercial lending, where all they care is the debt servicing on the property, and not your own personal income and debts.

If you need guidance on mortgaging feel free to PM me.

I will reach out when I'm ready for the next one. I am fixing Last year's Balance Sheets for related companies to allow me go into the market after i pay the Tax man his dues!

Thanks in advance!

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Vancouver, British Columbia

Quote from @Roy Cleeves:

Switch to commercial financing if you can and if your Networth supports it.

Then they will approve you based on that instead of your income.

I'm exploring that currently with my main businesses with one of the BIG 5's that I deal with. Problem is I moved my real estate portfolio from my the one handling my main businesses to CIBC a few years ago as I found them more real estate friendly. CIBC can finance a property owned by the company with Personal interest rates provided you can guarantee it, the other bank wouldn't let me have the low rates.

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Vancouver, British Columbia

Quote from @Anthony Therrien-Bernard:

Quote from @Elijah ROberts:

Quote from @Stevo Sun:

I think it depends on your goals as well. At least in my experience, cash-flowing properties are typically in less desirable neighborhoods. If you are buying in an excellent neighborhood, you might struggle to find a cash-flowing property. It might just be you are trading some cash flow for better appreciation in the long run.

That's Exactly my Problem. I haven't looked outside BC or other provinces simply due to my schedule. I might have to look at other less desirables. Only concern is that even after getting 2 more, I'm afraid I might still have trouble getting the big banks do it for me.

It all depends on your personal finances, without knowing the details it's hard to say, but getting cashflowing properties definitely helps with scaling your portfolio (on the residential side). There are residential lenders that do 16 properties (National Bank) or 10 properties (CIBC) so although it gets more and more difficult as you grow the ceiling is pretty high, and by the time you get to this size of a portfolio other options open up such as commercial blanket mortgages

I knew about CIBC but didn't know about National Bank. I'll look at their offering. Thanks.

1 Vote

Vancouver, British Columbia

Quote from @Stevo Sun:

Quote from @Elijah ROberts:

Quote from @Stevo Sun:

I mean it's not necessarily 'wrong' to look for appreciation instead of cash flow. Just depends on what you are looking for. I'm trying to look for more appreciation now, knowing I will be sacrificing cash flow some what. But I wouldn't say no to a good cash flowing property. I just won't force myself to go to less desirable areas just to chase that cash flow. I find those areas tenant management is more challenging and time consuming at times. Which may or may not be worth it to you.

So far its easier to manage my tenants as they are close and are all in growing areas of Vancouver Island. Remote areas may require me to subcontract a management company to do the work for me at a fee. Key is to keep it cashflow positive with the extra management fees.

2 Votes

Vancouver, British Columbia

Quote from @Anthony Therrien-Bernard:

Quote from @Elijah ROberts:

Quote from @Anthony Therrien-Bernard:

Quote from @Elijah ROberts:

I looking at scaling up my portfolio holdings and wondering if anyone knows of a better strategy is this high interest environment. I have 3 rental units so far with tenants in them; I've looked at getting another condominium to make 4 units, but the bank would literally need me to put down about 40% as down payment to ensure its cashflow positive. Any thoughts?

To me, it sounds like you are probably buying the wrong property. I know Vancouver is probably very hard to cashflow positive if that is where you are investing. There are other markets like Alberta for example where you can find cashflowing properties for example semi-detached or detached houses with basement suites, or 4plexes. We just closed on a property that cashflow positive and the lender had no problem with 80%LTV

Thanks for the insight! I haven't looked at AB markets, I'm mostly on Vancouver Island for proximity. I don't think its the property, but the Market. I'll keep other markets in Mind!!

Well, if the lender needs you to put 40% down for the property to cashflow, if your strategy is cashflow, then you should probably look for a better-performing property (which might mean to look outside of your local market) that will cashflow with 20% down, it's definitely possible even in this current market.

I'll definitely look into it. Thanks for the advise!

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Vancouver, British Columbia

All Forum Posts by: Elijah ROberts

Elijah ROberts has started 1 posts and replied 13 times.

Post: What would you do with $200k?

Post: What would you do with $200k?

Post: What would you do with $200k?

Post: Should I sell?

Post: Scaling up from 3 portfolios to 10 or more.

Post: Scaling up from 3 portfolios to 10 or more.

Post: Scaling up from 3 portfolios to 10 or more.

Post: Scaling up from 3 portfolios to 10 or more.

Post: Scaling up from 3 portfolios to 10 or more.

Post: Scaling up from 3 portfolios to 10 or more.