All Forum Posts by: Frederic Babeux

I prefer MTM, easier to remove ''bad'' tenants. Also easier for holdover tenants if that ever happens. 

We charge 25$/month/pet with some restrictions on breeds. I would like to charge a pet deposit as well but I think that is against the NY state rules of maximum one month security deposit. So currently we charge the pet rent only and it doesn't seem to bother tenants. 

I think it depends on who your target clients are. I feel older people would prefer a condo and a young family would prefer a house? Also, I think the condo might be more stable on the expense side compared to a house.

Any way for you to hang onto it? Maybe take the cashflow from other units you own? Pay the expenses from your current job (if you have a w-2 source). I'd try everything before selling at a loss. COVID-19 restrictions will eventually go away and it would be a shame that you disposed of a good property for AirBnB.

Best of luck!

To be honest, I think you will not know until you try it. I've read alot on the forums about the lower priced areas and how they're all for slumlords and yada yada yada... Still didn't stop me from buying a duplex in Rochester NY that I renovated following a not so great tenant. But now everything is going well, I've got 2 great tenants that are taking care of the property and was able to increase rents significantly following the renovations.

Was it easy? No, definetly not, but if it was, everybody would do it :)

If you want results that are different than everybody else, you gotta do something different than what they're doing.

Best of luck in your search :)

Honestly I wouldn't touch them. They seem over priced for what you get.

Also, I bought out of state and have a pm and it takes me about 1 hour per month to go over statements and do my book keeping.

I just don't see the advantage.

I'm also interested in knowing more about lending to foreign investors. This seems like the biggest hurdle to scaling up in the US for a foreigner.

@John Boychuk

You are right that we still have to give the 90 days notice for someone who's been there for 2+ years (we currently have one tenant to whom we gave notice who's supposed to leave by end of february).

Correct me If I'm wrong but when you have an annual lease, you can't break it mid-lease, even with proper notice unlike month to month. So if a tenant doesn't really respect the property, you're stuck with him/her for slightly longer.

In my opinion the month to month lease has the same benefits as the annual lease but with added flexibility for both tenant and landlord. The only downside would be if a tenant leaves in low season but I think you can limit this somewhat by having a respectable property.

@John Boychuk I am aware of the new laws that have been passed and currently only have month to month leases as I feel that is slightly less restrictive. 

@Brian Dickerson I chose Rochester because it was the closest market that had decent prices on the housing stock, I found it quite convenient to be able to drive there (about 5 hour drive which I find not too bad). I've looked at some other midwest states such as Ohio and they seem to have newer buildings (most multi's I've seen are brick buildings, which I like). I'll have to do some more research on those other states! I know alot of Canadians invest in Florida because financing is easier there for canadians (but again, only for 1-4 units).

Thank you both for your feedback, I definetly have to do some more thinking!

Hello all!

I am a Canadian investor with a duplex in Rochester NY and I am not sure if I should change my strategy and or market.

My long term strategy is to buy and hold but in order to scale, I need access to financing and that seems quite difficult for a Canadian investing in the states. From what I've read using the search function, the Canadian banks do not seem to lend for 4+ units buildings or at least not with favorable terms. I've also seen that there are some private and hard money that would do loans to foreigners but they seem much more expensive and they would probably kill the cash flow from the buildings i am looking into.

The duplex I own I paid for with my personal line of credit but that limits my buying power by alot.

The main reason why I invest in the states is simple, in my area in Canada, gross rent multiplier is about 16-20x, which is not ideal for cash flow.

So my question to you is this: does anyone think that it's worth it to get loans with higher interest rates and just go with my initial strategy? Or should I stick to 1-4 units where the Canadian banks are more open to lending?

Thank you in advance!