All Forum Posts by: Jagdish Bajaj

Hey @Kevin H. - I am sort of in a similar boat. Here in the Toronto area, prices have risen to a point where it makes little sense to invest in SFRs because they will nearly never cash flow with a 25% down payment. So I think your strategy of buying a large(r) property makes sense as it reduces vacancy risk, allows for professional management, etc.

I am also thinking of buying out of state or in the USA for better returns. From initial searches, it seems like the Midwest offers good returns on larger properties. Cleveland, Akron, Columbus, even Buffalo, maybe?

Have you shortlisted areas where you are or will be looking?

Wish you luck.

@Jan B. - in the Toronto area, where I live, the market has been pretty hot for a couple of years, recording 25 to 30% increases in price y-on-y. Makes very little sense for a landlord in the Greater Toronto Area too. In the past few weeks, the Government announced measures to cool the market due to extremely poor affordability. These measures, combined with a seasonal inflow of new listings, seems to have taken some heat off the market. However, prices are still at an all time high.

Canada, and particularly cities like Toronto & Vancouver seem to have a number of factors at play that are increasing prices: (a) low interest rates, (b) steady flow of new immigrants, (c) foreign investors, (d) lower supply than prior years and (e) sought-after country to move to.

Although your question was BC/AL, hope this gives you some added perspective on ON (Ontario) as well.

All the best.

@Ned Carey - well said, +cash flow is the right goal to have.

@James Wise - very informative read, thank you.

@Federico Gutierrez - point taken, yes will drive down to see the area. Perhaps as early as next week or the following. Thank you.

@Nicholas Novak - will do the drive around. How does one determine if a property is in the path of development or not? Is data from the city on permits issued one way to find out? Thanks.

@David Terbeek - good to know.

@Matthew King - good points, thank you. Noticed some of your listings on Loopnet. Will connect with you to learn more about them.

@James Wise - it is sad that an institution like CC is in a rough area -- what are the future prospects as you see them for this neighbourhood?

Hello everyone,

I've been reading some of the posts and knowledge being shared on BP for the past couple of weeks. 

I am thinking of investing in Cleveland and have a decade of renovation management expertise. Looking for multi-family investment opportunity (have rehabbed one in Toronto with good success). There seem to be many low-priced buildings that appear to offer great returns after improvements. Some are entirely vacant, others not.

Located in and around University Circle, close to the Cleveland Clinic, one would think that people working at CC would like to live close by, have a better than average income, thereby affording and paying higher rents.

CC, by virtue of its global brand recognition and continued success in the medical field, would only attract more growth, staff and therefore -- housing demand.

What am I missing here?

Obviously I realize that the older the building, the higher the deferred maintenance expenses... the worse the neighbourhood, the higher the rent collection challenge, evictions, damage, etc. etc. But, what if a building was upgraded to a higher level than it's neighbours -- would it attract a better, higher-paying tenant? Are tenants willing to pay more for an upgraded kitchen, potlights, granite counters, etc.?

What am I missing here -- please help me understand.