All Forum Posts by: Jami Kloet

@Mindy Jensen

Thank you! That was really helpful. I was really hesitant about the Ikea but I think I will price them out. I'm not too worried about assembly and installation, we do have the ability and knowledge to do that (although time is an issue). 

I'm not sure of price difference in the U.S. but here there was a $7000 difference between a Lowe's Kitchen and ordering from a local Timber Mart. I just checked and we don't have those Hampton Bay cabinets at our Home Depot, but we are a border town, so I would have to see what the exchange would be to order a product like that and bring it over. Thank you for the recommendation. Since these kitchens are small, I think we could definitely go with something like that. 

Thank you for all the feedback everyone. I will check out used kitchens as well, and maybe our local HFH. 

I'm interested in feedback on kitchen and bathroom upgrades for rentals. 

We are currently rebuilding one property from a fire, so that kitchen is being covered by insurance, but it's been a good learning opportunity for us, and pricing on the same kitchen has ranged from $8,500 to $15,000 at a box store.

We have two other properties that we are renovating and upgrading right now, both will require new kitchens and baths. One is a duplex, so we are looking at three kitchen upgrades right now (four if  you include the fire rehab). 

What have you found to be the best place to purchase cabinets, and what will hold up the best? 

I'm also wondering if there are any tricks to cost-savings on small (apartment-sized) kitchens? I know a friend recently purchased a set of wall cabinets through Ikea that looked great and were only $2,500. But I'm not sure about an ikea kitchen in a rental. 

Where do you purchase your cabinets and what have you found to be the best ROI for kitchens and bathrooms?

We are SW Ontario (Sarnia area). We also have access to U.S. retailers if needed. 

@Matt Geerts You are totally right. Apparently both tenants have been there for four years. The rents are $900 and $940, it's just a different type of tenant than we have dealt with in the past. 

We spoke with the owner over the weekend, and we are going to look at it again this week, and and then we will have to decide if we're up for it, and for what price.

@Thomas S. Thank you. You have provided insight on a couple of my posts recently and it's very appreciated. As for separating the emotion, I do get it. This would be our fourth rental, but my first experience witnessing this state of disarray. I do know I need to get over it, but I am sure I'm not the first to have try to separate the two, so advice is helpful. 

@Jacob Perez and @Kristina Heimstaedt sounds like my thinking is on the right track, I just need to shake off the discomfort. 

For these units, it would be new kitchen/bathrooms, and paint. We'd like to do the side I'm talking about first, while the other side remains occupied. The numbers are really good on this one, and I do like the building. I just need a strategy to deal with the tenant.  

@Roy N. Thank you for the response. We won't be moving into this one, nor will a family member. I think the new rules in Ontario also require that you occupy the unit for at least a year, but I would need to take another look at them. 

I think the renovation would be significant enough (new kitchen and some other work that needs to be done) but I do think first right of refusal does need to be offered if we were to take this path. 

The property is being sold by another investor who is unloading his multi units, and he does run a property management business. I am going to talk to him about it. 

We looked at a place today that was interesting. It's in an area we are looking to get into, the price is right, and it's a side by side duplex, each 3 bed/2 bath. It's an older character home, semi-detached style, and a lot of great features - high ceilings, crown moulding, and a lot of upgrades (roof, both furnaces, all wiring, and insulation under the energy rebate a few year ago). 

Anyway, we walked through one unit and it was disgusting. Bongs on the table, clothes, food, garbage everywhere. I couldn't take a full look because I was just so uncomfortable in the space. I know I need to get over this part to find those diamond in the rough properties, and I see it in this one. 

I have two questions: 

1) For the experienced real estate investors, how do you detach from the emotion of walking into a space like that. I can see beyond the mess, I loved the bones and features of the house and I can see the potential. But the emotional part of me felt so uncomfortable in the space, and wondering how people can live like that. We've never had tenants at this level (lucky I assume?) but I know if I want to take our REI to the next level, I need to get over this. Any tips?

2) If we buy a property with a tenant like this, how do we get rid of them? In this case, we'd like to get rid of this tenant, upgrade one side, rent it for more, and then do the other side when the other tenant eventually moves out (our plan is to BRRR this one). Is there a way in Ontario to do this?

Would love any more suggestions from those who have BTDT. 

Interesting, I never considered this, though anecdotally, we've always bought and sold in the dead of winter, in smaller markets and it's always worked well for us (Three primary residences, and three rentals - all closed between Nov - Jan). 

We actually just bought our third rental house, and it will close on Nov. 15. We've got some work to put into it, and hoping to have it available to rent by Jan. 1. 

@Troy Pirsich I think we're kind of buying in the same area? We're looking at another property tomorrow afternoon, so I guess fall/winter seems to be when we get our motivation. I kind of find we're too busy with other things in the spring/summer, so fall/winter is a better time for us to buckle down and commit to the REI buying/rehabbing process. It's probably not an ideal time to find tenants, but I think we are also in a position to hold off until Feb. 1 if needed.

OK, that's kind of where I was leaning, although I wasn't sure if I was on the right track. Thank you.

We did not give them notice of termination following the fire. So there wasn't any "right of first refusal" - at the time, our heads just weren't there. We were just relieved that that they were OK and that a neighbour got the dog out on time. It wasn't until we got the extent of the damage, etc. that we started thinking about things. It's been a slow and ongoing process.

They have been good tenants, and I would be happy to have them back, but would prefer at a higher rate.

If we start the conversation at this point, do we just inform them that the house will be ready for occupancy on or around January 1 and will be available to them at a rate of $800 per month if they would like to move back in? 

This is all a very grey area for us, and I want to do the right thing, but I also want to make sure we do the right thing for our bottom line within that context.

They were also on month to month lease at the time of the fire. Does that make a difference?

I apologize if these are rookie questions - I did a search, but we have never had to deal with anything like this, and Ontario rules seem so tight. 

I'm trying to comb my way through the updated Residential Tenancies Act but I can't really seem to find an answer. I'm hoping somebody here can point me in the right direction, or maybe offer some guidance.

Long story short: we had a major fire at one of our properties earlier this summer. We are waiting on an official cause of fire, but in all likelihood, the cause was unattended cooking (tenant's fault). The place is a total rehab, the frame still stands but everything from the studs in, the windows and even the siding is being replaced. Thankfully, both us and our tenants were insured. 

The process has been slow, but we are hoping to have the unit ready for occupancy by Jan. 1 (more likely Feb. 1). Our old tenants have expressed that they would like to come come back. 

They were good tenants (despite the fire), have been living in the home for five years, and I would be happy to have them back. However, the home will be brand new, and is in very high demand at this time. I like the tenants, but for business purposes, I'd like to raise the rent if I have an opportunity. I am confident we could get $150-$200 more per month once the renovations are complete.

I can't find anything in the tenant act that would relate to this type of scenario? 

There are lines about damage to property, but nothing is mentioned about fire. And there is nothing mentioned about damages that deem the property uninhabitable. 

There are lines about eviction for major renovations and upgrades, but I am not sure this would fall under that, and even then, it's not clear whether we could raise the rent.

Has anybody in Ontario been in this position? 

We are currently looking in the Sarnia market. Right now, we own two single family units south of Sarnia, and the demand in our area is strong right now. I want our next investment to be a duplex/triplex in downtown Sarnia. My reasoning for Sarnia: The downtown core is growing, the new brewery is receiving a lot of attention, the college is expanding (two new buildings), the research park is at capacity, they are transitioning from the chemical valley to a bio-industry cluster, which has already attracted two new plants, and the area is anticipating the announcement of a major plant expansion (that I have a good authority is happening), and taxes are some of the lowest in the province. Also, with all the plants, you get a lot of out of town workers, trades, etc. looking for rentals, as well as the surge in international students coming to the college. I'm fairly new at this, but would love to hear what others think.