All Forum Posts by: Huong Luu

@Fahim Ahmed

When you run your analysis, you have to consider which strategy you are doing ie brrrrr, flip etc. The expense ratio may be high, so as part of your analysis is finding ways to reduce the expenses like - can the hydro be put onto the tenant? If you are flipping, then you need to consider the forced appreciation (ARV). These rules need to have flexibility to account for tenant and area quality. In addition, some people when they analysis don't include 8% for vacancy, or 5% for capex, etc.

Good luck. 

@Scott Trench I took Don Campbells sheet and put it into an excel sheet. Happy to share that if you message me. 

@Benji Klassen If you are going to jump into RE investing, I would suggest you get comfortable with debt. This is GOOD debt, if you can leverage it to buy a more profitable property. I run into a lot of investors who are shy on taking on (good) debt, and then can't make deals happen because they are short on funds. 

You can use the HELOC as your reserve. Suggest you pay down the mortgages as much as possible and use the Smith Maneuver.

As well, CIBC and RBC are not accessible through regular mortgage brokers. You might want to try them out to compare HELOC limits.

Good luck  

 @Matt Bishop VTB means Vendor take back. This is the same as Seller Financing. Not sure if it is just a Canadian thing. 

@Chris Hamilton Before you find the leads, I would suggest you read up on the pro and con of VTB. And narrow down your search to investor own or non-investor owned homes as this will affect your presentation to them. Many investors will be willing to work with you on VTB. However if you find a non-investor owned property, be prepared to explain the pro and con of VTB to the seller and sometimes their agent.

In addition to the MLS, you can search Facebook, Kijiji and Craigslist. Also if you join the local networking groups, there will be deal sharing in those groups.

Good luck. 

@Mark L. Since this is the 1st time you are renting it out, I would suggest you use an agent for the 1st time to see their process and the forms they use. This will cost you about 1 months worth of rent but will be worth the education. You can also see how they advertise the unit. It's not hard to do.

In the lease you can add in a clause about noise, smoking (including cannabis). 

2nd on Berry McGuire for Alberta. I have also had good success with Larry Wells at Wells and Associate for Alberta. Which area of Alberta are you looking at as agent recommendation will vary. 

@Spencer Downing Suggest you prepare the breakdown of what the partnership will look at: ie 50-50% who puts in what, and who does what. How the rental income will be treated, expenses will be paid, and how cashcalls will be treated. Also prepare a sheet showing the return on investment by year 1-10. With this being your 1st and his as well, it is the blind leading the blind. Have a clause of '1st right to buy', how the value of the house will be determined if 1 of you want out, how much reserve will be kept back, etc. I would also suggest you look at what other assets you have that may be in harms way should something go wrong.

side question to this: Do you think rent control encourages renters to stay renters, thus making more houses on the market for investors? 

@Ashish Acharya Thank you for the reply. You are correct on the 1st point. 100% taxable. 

@Bjorn Ahlblad Thank you for the reply. This is Canadian taxes.