All Forum Posts by: Kevan Baum

Can you share some of these properties?  Is it true cashflow or phantom cashflow?  Do you have yard maintenance, capex, repair and maintenance ect worked in?  Does it meet the typical minimum in a hot market of a 10% cash on cash return?  I know the Calgary market very well and I can't find deals that meet those criteria with realistic rent rates anywhere south of Red Deer right now.  I see lots of people with unrealistic rose colored proformas that I hope will be saved by an appreciating market.  I don't think Red Deer south is a smart bet right now. 

 Have and had are the two biggest factors here.  Calgary HAD the biggest appreciation.  No doubt about that.  My properties in the Calgary area all came close or doubled in value in the last 4 years.  My condos in Edmonton (the ones I bought earliest, 2 years ago) have gone up about 20-30%, but I just bought them 2 years ago to 4 months ago.  I believe Calgary appreciation has run it's course, but it's really an educated guess.  A half duplex in the Calgary suburbs where I live sells between 500-700k.  I purchased them at 275k 4 years ago.  

Alberta builds homes faster than any other province.  It's why our market cycles are faster.  That goes for condos and single family homes though.  I think the Edmonton condo market is going to be the fastest riser in the major metros moving forward.  Again, that's an educated guess and not a fact.  They also have real cashflow that lets me hold it.  Most single family homes in AB, even suited ones, don't have real cashflow.

 Hi Ryan,

I own a few properties in Southern AB and a few in Edmonton.  I mostly do condos in Edmonton because of the low downpayments and cash flow similar to a single family home without needing property management.  I see 300-500 per door monthly with an investment of around 20k.  If you'd like to chat, just shoot me a pm.

Kevan

Hello,

This post is for Canadians looking to invest in Edmonton. I'm looking for a partner who would like to invest in the Edmonton condo market. I own several units presently and would like to go more heavily in to the market there as I believe portions of it are significantly under valued to the rents being realized. Downpayment would be split 50/50 and cashflow and eventual sale split 50/50. I am a CPM and have a growing portfolio. I've done a few partnerships before and can put you in touch with people for character references. Hold period is negotiable as is disposition. I prefer dispositions to be done via rent to own to tenant buyers. The partner would need to be able to secure financing and I would handle the work portion (partner would be welcome to participate in that side of it if interested). I'm currently getting between $350 and $550 per door in cash flow on my other properties, so that's the ballpark on monthly cashflow. It would be split 50/50. Just DM if interested.

Hi Dylan,

I have some investment properties in Edmonton.  I know a pretty prominent wholesaler who started out in Edmonton.  If you pm me some contact info I can put you in touch with him. 

 I went to the U of L and have numerous properties in Southern AB.  Pure, true cashflow is difficult to find.  You're lucky to make 100 per door in Lethbridge once you factor in maintenance, appliances and cap ex.  Edmonton you find $400 per door easily and there's more room for the market to run.

Calgary is challenging right now.  Not impossible to cashflow, but it's certainly getting there.  You need to be a strong value add investor and a strong operator.  I'd say for a newer investor Edmonton is a much easier market to get started in.  This is coming from someone who likes the city of Calgary way more than Edmonton too.  I stopped buying in southern AB almost 2 years ago now.  Exclusively north of Red Deer and into parts of Sask as well.  

Hi Anabel,

If you do decide to invest in Alberta, Edmonton specifically I can do my best to answer any questions you have.  

Hi Sandeep,

Calgary is getting to be pretty speculative at this point.  It's pretty hard to cashflow in Calgary and southern AB in general.  I'm a local guy who grew up here and a half duplex where I live is between 500-650k.  I'm currently investing in Edmonton and in multi-family in Sask.  Let me know if you want to connect or have any questions.

I've done MLI select financing.  It's important to note that "true" cashflow is hard to find in multis in Edmonton right now.  Not saying it can't be done, but unless you are self managing and local it's tough to do in decent neighborhoods.  Edmonton is a neighborhood based city with some horrible areas that attract horrible tenants.  Those are the neighborhoods that cash flow on paper, but don't in reality.  

Edmonton has a market inefficiency right now in the condo space.  I have true cashflow between 300 and 500 per door right now on properties I'm picking up between 72 and 90k.  If you're interested just DM.