All Forum Posts by: Gerry Kielman

Hi Shaun

Been a while since this post went up so I can say I forgot all about it. Good to see your interested in Merritt. You are correct about rentals being in high demand here as there is not much available and what is available is bringing in a pretty good return. The market is moving pretty fast in sales now as well. Anything properly priced sells fast and the rest have been sitting for awhile waiting for the right person. 

Not sure if you have a realtor here but I have been using Brad Yakimchuk at Century 21. Pretty aggressive and hard working. 

Let me know what your looking at and I may be able to help you out with some of the types of neighborhood your getting into and what is going on in them. You'll be safe with your inquiries as I'm not looking to purchase anything for now.

Thanks for the response. I look forward to meeting up when you come into the area.

Gerry

Just wondering if there are many RE investors from central BC here. I am in Merritt and would like to hook up with others to exchange notes and see what and how others are doing.

Thanks in advance, Gerry 

SFH tenant moves out...no income

Duplex tenant moves out ...1/2 income

what can  you afford?

Taxes and insurance are part of life. You can include them either side of the 50% which is just a guideline. Either way 60 percent is acceptable for expenses as long as 40% will work for your maintenance and profit. You are the one who looks at the actual numbers and has to decide what your comfortable with in the end.

If you can, find a duplex or a house which you can add a second suite. The idea is that if one tenant moves out at least you still have some income coming in to cover expenses and when both are rented your chance for positive cash flow is greater then a single family dwelling.

Imagine this conversation:

"Can you pay the rent every month?"
"Yes. Here is some money"
"Okay. Good. Here are the keys. I'll be back next month for more money"
"Okay. Thank you. See you next month"

You can check on things like who they are, where they work, and those other meaningless things later...

I would think you have one of two choices to make. You can't afford to sell so why not let someone else pay the mortgage and give you some positive cash flow at the same time. 2150.00 - 1400+/- = 750/month in the pocket. The new house may work better for you and your business so if you have a down payment and can handle the new mortgage i'd say go for it...unless you like your current situation and don't need the extra 10k/year...