All Forum Posts by: Jordyn Ohs

Hi Chris, yes sll cash flowing. I'm a Canadian, there is no such things as an LLC here.

Good morning everyone. I am currently in the bit of a rutt. I have recently just purchased my 4th investment property all in my name and have accumulated a DTI of 45.9%. This is the max it seems most "A" lenders will loan too, I might get 50% from a credit union but that still probably not help in the short term.

How do people keep going? I know there's seller finance and "B" lender that are good for the short term, but if a balloon payment is due say in 5 years, there's no guarantee that my DTI would be in a better place then I'd be stuck without funding. I'm not sure if I'm simply over complicating this or not. I used a heloc to purchase the first 4 rentals, so $155k of dept is wrapped up In that until I refinance each property which have already appreciated extremely quickly given the current market. Would taking out a small business loan make sense st this point? I was going to wait to build my portfolio bigger before starting an numbered company, but I'd like to hear what the BP community has to offer in words of advice.

Here are the current numbers I'm working with. Thanks everyone.

Annual T4 income: 250K

380K in liquid investments.

Principle property est. valued at 670K with 250k left owing and 155K heloc attached.

Rental 1: purchased 2021 for 220K current est. value at 270K was a house hack with 5% down and $1600 monthly rental income.

Rental 2: purchased 2022 for 280K 20% down current est. value 345K rental is $2000 monthly 

Rental 3: purchased 2023 for 267K with 20% current est value 310K rents for 2100 a month.:

Rental 4: purchased 2024 for 240K with 20% down current est value 245K rents for 1800 a month.

I have no consumer dept, I only owe on my mortgages.

Does anyone have a recommendation or referral to a Medicine Hat AB CPA who specializes in realestate investors. I have reached out to a few that have it listed on their websites, but when I speak to them they don't seem to have the extensive knowledge I looking for. Eg, no more knowledge than H&R block. Thanks in advance for any and all help that is offered. 

Hi everyone,

just looking for some advice on how everyone is paying down there Helocs when used for down payments on their rental properties. I currently have $107K pulled from mine and of that used to purchase two 2 properties. My draw down period is ten years of interest only payments then twenty years principal plus interest after that.  Is it best to just throw cash flow at the loan untill the principal is paid off (current cash flow between the two properties after interest and all expenses are paid plus vacancy rate = about $250 left monthly) refinance at renewal to pay it back in full?  I intend to increase my portfolio, just want to be smart about how I do it.

thanks all.

Quote from @Nicholas L.:

@Jordyn Ohs

not enough info to help

but if you're using a HELOC for the down payment AND getting a loan, then you're probably negative cash flow given that's 100% leverage

i would never do that unless i were going to refinance in the short term

Hi Nicolas, 
Heloc for down payments, but my own cash and sweat equity for the rest. I have no loans out for anything. I dept free minus these mortgages.  

Quote from @Chris Seveney:

@Jordyn Ohs

This is a loaded question as it really depends. For example do you have a great w2 and can you afford to cover costs of a major repair or 3 months of vacancy?

I have had 3 people email me this weekend who are over leveraged and also cash strapped in that they have repairs of $5k or more, o cash to repair and without repairing cannot release unit.

From a personal standpoint I target 70% LTV for any investment I have that way gives me ability to sell it if I need too

I'm Canadian so it a T4 up here and yes I'm I high earner who can handle vacancies if need be.  I've bought my last 3 house at fairly conservative pricing and reinvested into them. Eg roof and siding on one, all new paint and countops. Another had a basement remodel and added an ensuite on another.  First house was a house hack, so saved me a big chuck right off the bat.

Hi all, As the title says, how much is too much leverage at one time. I currently own 3 homes and used my heloc to front the down payments. I still have half of my heloc left. Is it better to keep adding equity by doing work on the houses while I'm renting them then refinance to recover the initial down-payment to reinvest into another property or to pay down the heloc? Or should I just exhaust the heloc and keep buying houses?  My market area is Medicine Hat AB. Any constructive criticism is appreciated. Thanks everyone.

1. Get seller to provide additional cash at closing  

Answer:I was considering asking seller to cover closing costs to offset the negative cash flow.

2. offer a lower price and if they cannot meet it walk from the deal.

Answer: What type of offer would seem reasonable in this situation?

Some added questions I have:

1. Would you self manage or use a property manager?

Answer: Yes swlf manage, at least at first, can always transition later. I already self manage a few SFH.

2. What is the landscape for available space in the area. 

Answer: There are 6 parking stalls off street. some grass and shrubs. No room for expansion.

3. You mention $450 below market. what is the current rent vs. what is market rent? 

Answer: Current rent is $750 per unit. Market would be $1200-1250 per unit.

I have recently come across a 4-plex that I am interested in.  They are asking $550,000 and it's in a good part of town.  The units are in decent shape but could use some sprucing up. The owner just put a new roof on the property and the exterior is all maintenance free brick and stucco. My only problem is the current rent he is charging the tenants is $450 under market value as is DD.  After running the numbers I would be cash flowing-$1000 a month. Two of the tenants have been there over a decade and all are off lease. I would need to give 3 months notice for a rent increase and I'm not sure if the current tenants would be able to afford it.  So that would leave me 3 months in the Red and possibly a 4th month filling vacancies.  What type of deal would you need to make this worth your while? And why? Thanks everyone. 😊 

Hello all.

Just throwing this out there for a few of you more seasoned investors. I'm working on purchasing my first 4-plex. I currently own a couple SFH which only cash flow around $200 ish. What would you expect in today's market for realistic cash flow on a 4-plex? It dosen't necessarily have to be a dollar amount but a percentage per month. Area is Medicine Hat AB. Thanks in advance for your help.