All Forum Posts by: Jonah Simmons

@Reagan Wilson

You should have no problem with financing on that. You'll only need 5% if you live there and you'd have some cash for a few renos. Where is the duplex located? I'm guessing north side? Sounds pretty cheap for a 4 plex. Some areas will just give you problems with renters. It's not 95st is it?

@Reagan Wilson

Do you know what area you are looking into buying?

Are you employed? You say you're 19 so wondering how long you've been working.

Now is not the time to get into hard money loans as the economy is going to be very bumpy over the next while.

I do have a rental but I bought 5 years ago at the top of the real estate cycle so sadly the property has gone down in value. I break even on it so it's not that bad.

You have a great down payment for house hack to get started. You would live on site and you'd get a good taste for what it's like being a landlord.

@Reagan Wilson

I'd imagine there is going to be some great deals coming soon.

@Theresa Harris

I'll have money to put down. I have great credit, but I do have 20000 loan I'm paying down that has 4 years left on it. That's the extent of my debt. My mortgage and that loan. No car loan, toys, or credit cards.

@Kris H.

Great info thanks. This listing is on MLS and while browsing kijiji it is described as a forecloser. Original asking price was 280000 and that has since dropped to 230000. Last sold price in 2013 was 255000. Property assessment as of 2020 is 285000.

I wonder what could be wrong with it to warrant a price drop like that.

I live in Edmonton and people are having a hard time here. I'm lucky enough to be able to weather the storm with a descent job.

@Kris H.

I've got a question for you. I don't know much about financing and refinancing. I found property that's been foreclosed on and the asking price 230000. The market value of the house is 285000 and it's in a B neighnorhood. Apparently it's been completely rehabbed and its around 2000sq ft. Wouldn't I be able to purchase the house with a traditional mortgage, then immediately refinance? Assuming I could get them down on price and I could refinance 80% wouldn't I be able to pull my downpayment back out?

This isall hypothetical as I don't quite have a downpayment yet. Just trying to learn.

@Huong Luu

Thanks for the reply, yes I think it would be best to try saving and using as little of private funds as possible. People are so impatient these days and want to scale as fast as possible. I'm saving now and plan on getting into rental properties so I can retire earlier. With all the talk of hard money I thought I'd look into it and it just seems so risky. To each their own though I guess.

Cheers.

@Kris H.

I like the HGTV comparison, you hit the nail on the head. I do like the podcast. It's very informative. But I don't like how they push the hard money so much. A person could get themselves into a whole mess of financial trouble doing it that way. It's probably a great way to scale fast if you don't run into any trouble. But so much can go wrong, and they don't ever talk about that. I think it's disingenuous to not discuss the risks involved.

They make it sound so easy in the podcast. "Get a hard money loan, then just refinance that ***** and cash out! Easy peasy!"

Here in Canada you usually can only refinance 80% of the appraised value. So you'd have to buy at 50-60% market value. Which is pretty hard to find. Probably not impossible but c'mon. Also isn't the refinance loan generally financed at a higher percentage than a conventional mortgage? So after all is said and done you're paying a higher rate which would greatly affect your ROI. Any clarification on that would be appreciated.

Also from my research hard money lenders want you to have skin in the game. Which generally will run you 15 to 20% of purchase price. So wouldn't it be easier to just purchase with your 20% down then take out a line of credit for improvements then rent it out.

This is my first post. Just looking for advice.

I own 1 rental property, a townhouse

I bought at the top of the market 5 years ago and the property has gone down $42000 according to the yearly property assessment. I'm not losing money with renters (just breaking even) in there but I've definitely lost equity. With the market down I'd like to get into another rental property but I'm not sure a bank would even talk to me seeing as how my townhouse has depreciated so much. I'm just curious if anyone has any advice. I live in Canada, blue collar worker and really want to get into real estate specifically rental properties.