All Forum Posts by: Jason Gaunce

I'm in NB and we have a different tax rate for non owner occupied that is almost double than if you were living in the property

Hey man, i am BRRRRing a build now and purchasing a second non BRRRR that should be closing May 1, it is an old city but there are good properties for cheap but you do have to be careful, don't cheap out on an inspection and there are some cheap buildings is sketchy areas that don't rent for much so keep an eye out for that. I don't live in SJ but currently there through the week doing renovations, if you want to meet up sometime or if you want to chat about a property feel free to message me.

If i started as young as you, i definitely would get a multifamily that needs work and live in a unit and fix the others and time goes on.

Hey Spencer

  Thanks for offering, its not the right time for me at the moment, but i am curious on how much you are asking if you want to message me. If its a really good deal I might be able to find the money needed lol 

Hanan
  Yes i understand, When i search SNB most comparables  are 4 or five units which range from 128K to 197K within 5 blocks. Even if i don't get what i hope i will be ok and my long term plan is for cash flow, I see you have quite the portfolio, within 3-5 years i'd like to be like you and have multiple more 6 or more unit buildings. I am in talks to purchase a tri-plex was hoping to close at the end of this month but with everything going on i'm not sure that is going to happen. Owner is in the US so with everything going on it may be on hold for a month or so. Its an owner finance for two years so a little more than a normal deal
   

@Justin H.

There is a lot of rough stuff but saying the whole market is dumpy isn't a fair way to look at things. Every city has bad areas, Saint is an old city and has a lot of old buildings that have been neglected but there is a lot of Beautiful buildings also.

People need a place to live, if you try and rent them a dump well your not going to get great tenants, if you have a nice building you can get good tenants.

I am also a mechanic and i learned years ago that is a but for every seat, because I've seen a lot vehicles and say who would drive that thing and someone always does. So i am finding the same with apartments, there is a person for every place and the person for that place depends of what you have

@Tim Reeves

Knowing the different locations in the city is a must a lot of cheap buildings are in areas when rent is 450-500 /mth for a two bedroom, there are a lot of areas in the city. Rents on my street are 750-850 two bedroom but a couple streets over are 550 for two bedroom, the building quality is different also.

I wanted a back yard and off street parking, it give it more of a home feeling and i think that can help keep tenants longer term.

@M McKee

Hey for the taxes, the 155 is what i was paying when purchased and what the previous non-occupied owner was paying, i have had a tax assessment done and reduced for the current renovations needed but i will have anothe appraisal done when finished and do expect the taxes to go up. After looking for into it my taxes payment will probably be around 250 a month with what the ARV will be

@Andrew Hynes @Andrew Hynes We purchased the building in a Corporation so we only personally get taxed if we take a paycheck from the corporation.

With all the renovations done we have tax deductions for the corporation to save on income tax from the cashflow.

Is this what you mean or are you thinking of something different than i am

@Devon Bergsma

Hey Devon

Im in Meductic and my spouse and i purchased a duplex in Saint John,I'm originally from Grand Bay-Westfield just outside Saint John.

We are currently working on the duplex as a BRRRR.

Woodstock has a good rental market, vacancy rates are very low but it is hard to find good investment properties. I am hoping my next one is more local because i stay in Saint John all week away from the family.

@Justin H

Hey I keep hitting the back button or keep getting interrupted and delete what I have written.thats why it has taken me abit to get back to you,sorry.

So purchase price was 30K with closing cost i was around 32,500

My original reno budget plans were 15-20k, but could got to 25K if there was major unexpected problems. The city tax assessment was 80K so i was using that as my comps because in NB that is usually a fair amount less than what you can actually sell for.

So i was working my numbers on worst case scenario: 32,500+25K=57,500 and i rounded that to 60K in case that 2k need to be spent somewheres so 80K ARV banks loan 80% so we end up with 0 dollars invested and have a cash flowing building. Not bad for our first BRRRR. So we purchased

Actual number are going to be around 40K reno, 32,500 purchase and ARV of 90-95K

So 72,500 into the deal. So if it appraises for 90K 80% value is 72K so we would end up with 500 left in the building when refinanced which is still great in my mind.

So the cashflow numbers

First thing i did was get rid of oil heat that was included in the rent which was an expense of 5000 per year, u spent the money and installed electric baseboard and Insulated almost every wall in the place.

So when purchased we had one tenant paying 850/mth everything included(downstairs 3 bdrm) and upstairs tenant moved out two months prior and she didn't try and fill because she knew she was selling and didn't want the hassel. And that 2bdrm unit rent for 750/mth everything included

So rental income was 1600/month

Im thinking with my upgrades i will be able to get the same rents at least with paying utilities.

So income 1600

Expenses

Taxes. 155

Insurance. 120. But will go down after renos

Water/sewage 240

Vacancy. 80

Repairs. 80

Cap ex. 80.

Property manag 160

Total. 915

1600-915=685/ mth cash flow

Once a mortgage is added 75k at 4.5% is 414

685-414=271/ month cash flow

The property management is going to be done by me for the first couple years until i understand it well enough to know who to hire properly.

Sorry for the novel lol and thanks for chatting, i enjoy real estate investing a lot and have not regretted it once even on the bad days lol