All Forum Posts by: John Ibbits

Ontario poses a challenge as rents can't be increased to market... case in point, the ON gov just announced a 1.2% permitted increase on rents next year... not even keeping pace with inflation. Best source (in markets that have no rent control) is either a realtor that deals with investors or a property manager.

What about sites like point2homes? They have quite a few apartment buildings listed.

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Originally posted by @Chris Baxter:

Originally posted by @John Ibbits:

Originally posted by @Chris Baxter:

@John Ibbits welcome to BP! I personally treat appreciation as a bonus and don't bank on it when investing. Buying a SFR in the GTA will tie up capital that can be deployed (and accelerated) faster elsewhere. The first question that you need to answer is why do you want to invest? Your strategy will be tied to your 'why'...

To be honest, one of the girls is diversifying with a mix of equities etc which I don’t want to add to further. Goal is capital preservation and appreciation plus income. Curios, where else can it be invested and accelerated instead?

If you value time ans want a truly passive investment, your best bet is to partner with someone that has the investing skills and time, but lacks capital.

To accelerate growth, commercial multifamily properties (6+ units) offer a better opportunity. Value on these is based on NOI and market cap rate. Find a mom and pop property that has a little deferred maintenance and below market rents, turn it around, and refinance.

To the first point, are you referring to syndication?

To the second point, I imagine these kind of properties are very difficult to find in Ontario esp. What would be a good starting point? Real estate broker?

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Originally posted by @David Steinbok:

You should always buy a property with positive cash flow. And you are on the right track if you are looking for a good property in a nice area. You will attract better tenents and your property value will appreciate.

everything will cashflow depending on how much money you use as your down payment, however using only 20%, you will need to look outside the Gta

Try looking at Peterborough, London, Kingston or Brantford. All are good towns to invest in.

Thanks for replying. What’re your opinions of syndication and investing with large groups that in general. One of my goals is to deploys excess capital and put it to work.

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Originally posted by @Ronan Donnelly:

Hi @John Ibbits, and congrats on recognizing the value of real estate as a wealth generation engine.

I'd suggest taking a step back to think about the specific outcome you'd like longer term. My own journey started with buying my own home which I rehabbed, then I moved into buying SFH's as investment properties. This worked in terms of generating cashflow and appreciation although it was difficult to scale without it becoming time inefficient.

I found my own investing sweet spot by investing passively as a limited partner in a syndicate where I get all of the benefits of real estate investing (cashflow offset by depreciation, leverage, appreciation, long term capital gains, ability to 1031) and in addition I get to leverage a professional team.

I don’t think you will go too badly wrong whichever route you take and I’d encourage you to think about how your strategy works for you as it grows.

Good luck,

Ronan

Thanks for your reply Ronan. Are you aware of any similar syndicates in canada? I do have a day job and not a tonne of free time.

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Originally posted by @Chris Baxter:

To be honest, one of the goals is diversifying with a mix of equities etc which I don’t want to add to further. Goal is capital preservation and appreciation plus income. Curios, where else can it be invested and accelerated instead?

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I want to preface this by saying that I already own a small commercial building for my business and my personal home, so I understand what owning a property and required maintenance can look like. But I’ve never had an investment property.

What would be a good place to start? In the GTA, I was thinking about getting a SFR home in a good school zone and having the basement turned into a separate unit. Im not really looking for cash flow per se but long term capital appreciation.

If I should be looking at other kind of housing (condos, multi family etc) I’d appreciate any tips as well.

TIA

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All Forum Posts by: John Ibbits

John Ibbits has started 1 posts and replied 6 times.

Post: First investment property

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Post: First investment property