All Forum Posts by: Stephanie D.

So we've got an accepted offer and have fulfilled all conditions. Had a bit of trouble with financing due to the type of foundation but that has now been resolved. But last night, just before our deadline, I wrote to the real estate agent and told him we wouldn't be buying the property. He actually wrote a nice message in return and now I am second guessing myself. My main concerns: What if we can't rent it? What if we have a terrible tenant experience? What if something goes really wrong with the duplex? I want to invest in real estate because I want to diversify our investments, but I'm not that excited about being a landlord. We plan to hire a property manager, but I am still worried.

And don't worry, Kris, I have no intention of doing that. I am very financially conservative and the fact that we are even this far along in possibly purchasing our first rental has me crazy nervous!

Thanks all. It turns out the penalty to refinance is much larger than estimated, so maybe not such a good idea. Aside from  great point about separation of personal assets, I'm not sure if I would have been able to claim the interest for the mortgage on my taxes if both mortgages were lumped together. 

Great point Dan. The branch manager at the bank where I hold my primary residence mortgage actually suggested that. Apparently, they can even turn part or all of a HELOC into a mortgage with fixed term rates that are competitive with today's mortgage rates. Also keeps all the finances separate which is better for taxes.

Hello all. I always get such great advice here. I am having a hard time getting a good mortgage on a rental property I have an accepted offer on because it has a pillar and post foundation. I can get a mortgage, but the rates are higher, it has to be insured, and can only be amortized over 25 years instead of 30, all of which affects cash flow. I was just talking to a mortgage broker and he suggested I refinance my primary residence mortgage at a great rate (paying a penalty that is more than made up by the better rate), and use the built up equity to buy the property in cash. It sounds like a great option to me, but is there something I'm not thinking of? This is a radical departure from my original planning and I have to make a decision today to meet financing conditions on our offer. 

Roy, thank you so much, that is very helpful information! I still have a lot to learn, obviously. I've seen some people's leases here and they don't appear to be standardized but I could be wrong. I realize it is late in the game for a student rental, but I am hoping we can make it work for this year, and advertise much earlier next year (assuming turnover). I have been in touch with several property managers and I had a great interaction with one this morning which alleviated some of my fears. 

Nice to hear from a fellow Canadian! I am originally from New Brunswick and just came back from several weeks of fieldwork there. Hence getting in a bit late for a September rental here. I would love to stay in touch.

I'm confused about the deposits. Maybe the rules are different in Canada? I think the only deposit we can ask for is last month's rent, and we can't use it to pay for damages. I'm not sure how one would get tenants to pay for damages otherwise though. 

They look very nice (everything redone) but the bedrooms are small and they are missing a few perks like central air, dishwasher, off-street parking. I hope to target graduate students but I may not have as much choice this year because it is so late. Hopefully I can start advertizing earlier next time and have a higher choice of tenants. I also hope to add a few of those perks over the years to attract high quality tenants, we are just short on time now. Our university is having a hiring boom probably starting next academic year, so there is some potential opportunity there in the future. 

Thank you Kelly, that is insightful about the non-student renters. I did get non-student responses to the ad, so that is definitely a possibility. 

Thank you, all! Slowly starting to feel better. I am normally such a safe person, and this feels like a big risk. It also seems odd to somehow be responsible for, or at the mercy of, other people. 

So we've got an accepted offer on a nice small duplex. We need to meet all conditions by Friday and everything seems on track. We haven't had the inspection done yet because that would be the first money we have to spend on this place (aside form the refundable deposit) and we are not sure yet. The financials look good. There are better deals to be had, but we are looking to rent in a student area and the fall semester is fast approaching. The duplex has been fully renovated which could help us fill it even this late. I put a test ad up with real photos on Kijiji and got a lot of interest in a short amount of time (9 replies in a few hours). There is a bit more work required (install a washer dryer in both units, replace a stair runner, buy a few items since there is literally nothing in them, and a bit of landscaping), but nothing extreme. The main thing holding me back is the fear of renters. You hear so many horror stories. And everyone we talk to in real life says that student rentals are a terrible idea, whether they have direct experience with it or not. Is all this fear worth it for an extra $300-400 a month? Help!