All Forum Posts by: Joe Di Fonzo

Recently purchased a multi unit property. Size of property and location may lend itself to rezoning as multi use (residential and commercial) and produce more cash flow than as just residential . Anyone familiar with the zoning application process in Hamilton, Ontario that can offer info on how the process works and general advice?

@Luke Preslar: so in terms of the financing we were originally going to do a conventional down payment of 20% making it a $64,000 DP carrying $256,000 on a mortgage at a fixed rate of about 2.54%. However I am buying the house with two of my sons, neither of which are home owners yet, so they both qualify for the first time home buyers program. We are now playing with the idea of putting 5% ($16,000) down and taking the hit on the mandatory Mortgage insurance which amounts to an extra $36/month on the mortgage (or $10,900 over the life of the 25 year mortgage). I am not sure on the mortgage, whether we can do a variable mortgage through this program, so it may be less then 2.54% to start. Overall, when putting 5% down, the property will cash-flow less but the ROI is better and allows for us to purchase other properties with the capital that would have been used towards the 20% downpayment.

@Steve Vaughn for the 50% rule our numbers show that taking into account 50% of our rental income allocated to expenses, and after debt service repayment, the property still cash-flows well. 

**Almost meets the 1% rule, haha

Proud to announce we purchased our first multi-family home (triplex):

-Purchase price: $320,000

-Needs some improvements in each unit (kitchen, bathroom cosmetic modernization) likely to be in the neighbourhood of $20,000 total

-Estimated rental income: $3150

-Estimated expenses: $2259 (this is a very safe estimate)

-Cash flow = $1090

-Meets the 1% rule and well above 50% rule

Feeling a little anxious (given it is our first deal) but very positive about the breakdown of the deal. All-in-all a great learning experience and hopefully the first of many deals. 

Feel free to comment, provide feedback on the deal. All thoughts are welcome!!

-Joe

Are future meetings planned? I live in Toronto and am new to real estate investing.