All Forum Posts by: Huong Luu

Hi @Wayne Poisson I have a excel version of Don Campbell's analysis if you want. You can get it here or email me and I send it to you. https://www.cashproperty.ca/free/

As for the rent estimator, a google search for rental availablity will give you a good insight on the rates, as it depends on location, and condition of the units. 

Good luck.

@Brady Hauch Agree with @KC Pake. In addition, you can consider a Rent-to-Own (lease option) or an Agreement for sale. With both of these, it is similiar to seller financing, but a bit different, as your sister would still hold title. Happy to explain these in more detail if needed. Good luck. 

@Sat Palshetkar Welcome to the RE world and congradulations on jumping in. If you are planning on living there (ie in 1 unit) then you are house-hacking and this is a different calculation consideration then renting out both units and making it a true investment. If you are living there, then you need to weigh the benefits of having a home, as oppose to renting somewhere else. Your calculations should include utililies and repairs, legals, snow removal, etc. Keep in mind if you are house-hacking, you will only be able to write off a percentage of the bills. Even if you are negative cash flowing but living there, it may be worth it, as you are not paying rent to someone else. You need to consider how long you will live there. Anything less than 5 years may not be worth it. 

Will this property allow for Bill 23? If you are not going to leave there at all, and you can't do Bill 23 or have any value-add to get to positive cash flow, then NO, don't do it. 

As a side note: my 1st place was also a house-hack. Best financial move I made. 

@Anthony Quint I personally decided to stay in CAN and not venture into the US. I know the $/d is a lot lower in US and the CF can be crazy good there. But I figure if many Canadians are going cross border then I will keep my eyes in CAN. Being in CAN I find it easier to self manage and hire a team. During Covid, many of my CAD counter-parts who had portfolios in the US had a very hard time due to lack of communication. Growing up in CAN I already had a head start in the rules, markets, etc, so the learning curve wasn't as long. A recent change in Canada is the increase in capital gains tax inclusion (increase from 50% to 66.67% on June 25, 2024). This may affect your decision depending on the strategy you are doing. Good luck

Hi BP family. I recently took on the 90 days to create a $1M Dollar Challenge put out by Grant Cardone. Currently have 1 project that will achieve this, but looking for a 2nd opportunity as a back up plan. Does anyone have an opporuntity they are working on that needs a loan sponsor or a capital raiser? What other opportunities will create a new $1M evaluation? All suggestions welcomed. 

-crime rate

-look in 2ndary and 3rdary markets. As the primary market is priced high, when these primary markets expend, they will come to the 2nd/3rdary markets

-avoid 1 industry towns. This can lead to a 'ghost town'

-decide what kind of partnership you want, and what you bring to the table (ie use a SWOT analysis) 

Good luck

Thats on the low end. Each lender has their own cap rate they use for funding, and you can check the most recent CMHC reports. I am getting around 4.5-5%. The lower the cap rate, significes less risk, better client profiles, etc. Also cap rate is only 1 # to look at. Good luck. 

Some areas to look into: Welland, Pembrooke, Belleville, etc. There are areas you can get $600K range that require cosmetic updates. Keep in mind you should have 3% for closing in cash. If you are house hacking, you might want to think about buying a 3 bd house and renting out the rooms. Suggest you look into the RRSP and FTHS option. Also, since you are planning on living there, if you have a -$200/m (for example) it still maybe worth it, as your rent would be signigicantly higher, and now you have mortgage paydown as well. Good luck.
 

Besides the contractors, when you scale up, your processes and paperwork systems will be tested. If you don't have this set up, and your financial resources become tight, your contractor may stop work. Communications skills also pay a bigger part. Good luck 

Hi BP family. Wondering what others are doing to effectively pass their portfolio to the next generation, either currently held in personal name or corp. Considering reducing capital gains, probate duration. Is there another option besides IFS? Has anyone set up a family trust? 

Thanks in advance.