All Forum Posts by: Jason Gaunce

Hey other NB Canada Investors!!

Jay here, my spouse and i bought a duplex in lower west Saint John and i am in the middle of renovations of our first BRRRR. It has taken longer than orginally planned but we knew before we started that that could happen, cheap old buildings don't always as planed.

When we bought in Feb of this year the upstairs unit had the previous tenant moved out the end of December and the lower unit was rented to not the greatest tenants but hey they paid the rent. I started renovations on the upstairs unit and they had the opportunity to buy a house eent to own so they moved out the first of June. And my father went into the hospital and was going to need a new place to live and i thought the lower unit, but it had a stand up shower ans he needs a tub, so dig a litter deeper int the bathroom and find mold and water damage. So i ended up tearing the bathroom out and everything on that wall to the roof, luckily the upstairs unit was a 1/2 bath that im changing to laundry over the lower unit bathroom. So it started to be a sh!÷ show lol.

So i am partway through repairing the damage. I am doing the majority of the work myself. I have been a tradesman all my life and my father was a mason and uncles carpenters and i was always working with them whenever needed. I have tried to hire some help with not great luck, execpt my electrician, he has been great.

So i thought i wold break the ice and tell you about me and because i would like to find people thatt are local to chat with or eventually set up a group meetup .

Oh yeah i am doing this all with Chronic lyme disease, 2 young children and a very understanding spouce lol

The method I used to choose which property was the 4 quadrant analysis.

Income minus expenses equals cash flow and then figuring how much or a mortgage payment could be afforded to make sure there was still decent cash flow after the refinance of the BRRRR. Then took the other side of the quadrant and figured the max amount of expenses for renovations to make sure that fit within my numbers of comparables in the area

@Pedro Padierna I am soon to be finished my first but i have been thinking about this same situation, instead of dropping the rent maybe offer 1/2 price, on the first month with a 1 year lease agreement,

@Jaysen Medhurs

Thank you for the reply, I wrote it out on my Phone and my sentences got chopped up and words missing.

We don't need a closet for it to be a legal bedroom here. I believe in this area 3 bedrooms are more desirable, but I'm thinking around 100/mth from a 2 bdrm to a 3 bdrm but a 3 bdrm could have a longer term tenant. But like you say the amount of time to recover the cost of converting is a long time at 100/mth.

Also I'm wondering when I go to finance it in a years time if two 3bdrm units would add more appreciation than a 3/2

And I like the sound of a 3 berm with 1 and a 1/2 bath lol

I had an electrician come in and tried to change my mind and convert the 1/2 bath to a laundry and that got me wondering if it would be a good idea or not so thank you for your input

IThis is our,my spouse and I, the unit is 2bdrm,1-1/2bath small living room good size kitchen one bedroom is 12'x8'5" and the other is 11'11" with a 4' deep closet that runs the whole width of the room, so I'm thinking if I get rid of the closet and open it up and split that big bedroom into two decent size room 11'11" x 8'5". This unit was rented 750 heat and lights, I'm changing the heat and having all the electrical upgraded and this with nothing included I should get 850 nothing included on the 3 bedroom. I might list for slightly more to see if I get hits but 850 is a quick fill price.

Question 2 I have a shared laundry in basement, do you guys think I should take the 1/2 bath and make it an in unit laundry?

The property cashflows well, basically the second unit is all cashflow until I refinance. What are your thoughts, I'm in NB Canada Thank you, Jason Gaunce JLA Real Estate Investments

yes I think it will be somewhat easy to build a credit history, from what I've learn and been told the first year is the hardest and if you show your Corp has income and you are very good at paying your bills you will be able to get loans through the bank. I wouldn't expect to get 500K after the first year but maybe 60K-80K depending on your finances. 

       We bought a 30K duplex used savings and personal line of credit, putting 25K into it and  then going to get a mortgage on it, I'm going to try around 9 months but don't expect any approval until 12 months and I have run this by 2 banks about getting refinanced for 72K with a 90K evaluations and they both said as long as the next year goes good it should be no problem. They could be blowing smoke to get me to bank with them but it gave us hope.

My fiance and I recently opened a corporation in NB Canada and I was told by the bank that they use the income of the property would be what determines if we will get the mortgage, so we got them to see what pre-approval we could get. We got denied any loans because of our debt ratio, which I knew was high because I am on disability. So they take your income and credit number to get approval. We opened an account at Scotiabank and they have a Visa debit bank card that we can start building our businesses credit, we start with a $1000 limit and it increases with use and payment. 

Hey Trevor 

   I would definitely be interested in looking at the property and could move on it quick if it it worth it, what city is it in?

Hey I'm a new investor in Meductic,NB, I will be starting to invest in Woodstock,Fredericton and possibly Saint John and Moncton. 

   I am currently looking for a multi-unit building to brrrr for my first investment. 

   If anyone wants to touch base and talk real estate feel free to connect with me.