All Forum Posts by: Erika Geoffrey

Hi all,

I’m fairly new to investing. My husband and I have two properties in Ontario, Canada. Our market is super expensive and lending rules are MUCH more difficult. We’re looking to branch into the US but we just don’t have the time and resources to be dealing with contractors, doing renovations, etc. 

We have more than enough funds and would like to “recycle” our money. 

Im curious though - are there still JVs out there who will do the work, and we do the financing / provide funds?

Or does everyone just find their own private lenders now and do it themselves?

Any tips would be great!

@Eric Fernwood Interesting take. I agree smaller towns are more risky, for many reasons.

Wouldn't going for a population of over a million take out a ton of opportunities? Canada only has, I believe, 6 cities with over 1 mil population, and of course prices are much higher in these locations (they would likely gain more appreciation over time, but with a higher purchase price the overall return would likely be the same as say, a city with 300,000 population).

When it comes to inflation, it seems most jobs don't keep up with inflation raises. So whether the income comes from rental properties or a 9-5, your buying power would decrease over time, regardless. No?

@Ned J. I’m aware these aren’t the norm. If you check out some of the smaller towns in NY you would see some of these deals. 

The houses themselves are cheap and don’t appreciate, but rent prices are still pretty decent. 

The deal I found is two properties for a total of 5 units, 146,000. Total rent is 3850$ plus utilities, water, etc. 

@Mike D'Arrigo the properties I’m finding are over 1000$ a month cash flow. I’m currently looking at a two property package for 146,000 that cash flows 1800$ after reserves. 

I agree buying for cash flow at 200$ isn’t worth it. But over 1000 I might be convinced 😃(again though, the property would be worth nothing more than I paid)

Thanks for your input!

We are getting a lot of appreciation on our other properties. But 0 cash flow, so I think we are close to taking that leap of faith!

Don’t do anything until you close. We just experienced this. Sellers wanted a 30 day close and we said we would try, but as we’re foreign buyers 45 days was more ideal. We put in the offer 30 days with possible extension. They accepted. 

Come closing, financing wasn’t fully done. We asked for an extension and they said no and re-listed. We even offered for them to re-list in the meantime and then if our financing beats the next offer then it’s there. They still said no. 

I’m glad we didn’t dish out a bunch of money on furniture yet 

Nice! Sounds awesome 

problem is the Canadian market is impossible to buy in. So we sell, but then can’t get back into the market. So we’d have to branch elsewhere - which is what we’re looking at. But still would like to keep our few in our home town 

Correct. However I’d also like to get some cash flow as well. Not just appreciated value that I won’t see until I sell 30 years from now

We currently have a few that have appreciated over 50% in the last 2 years. However they don’t cash flow at all. We’ve been looking for deals strictly for cash flow, however I wanted other investors opinions and experiences on this approach.