All Forum Posts by: Kiril Nikolaev

Hi Tyler,

 I'm from Canada, but have done a few real estate deals here over the last 8 years. I am looking to invest in Ohio due to the cash flow potential and because it's landlord friendly state. Would be happy to connect and see if we could add each other value.

I'm very interested in multi-family BRRR deals.

Hi Jonah,

I’ve passively invested in quite a few syndication and private fund deals. Definitely trust your gut and don’t invest if something doesn’t seem right.

Also, here’s a list of my top questions I ask the sponsor before investing:

1. How focused are you on this deal/fund/syndication? Is this a side hustle or are you doing it full-time?
2. How much of your own money is in the deal/fund/syndication?
3. Mechanics of the fund:
   1. Lockup period
   2. Distributions
   3. Compliance requirements (KYC, AML)
   4. Reporting timeline
   5. Fee structure
4. Can you share referrals?
5. Can you share your track record?
6. Who are your competitors? Why are you better?
7. What happens if you die? Do you have a key man provision?
8. What level of communication can I expect post close?
9. What's the worst deal you've ever had or the worst that's gone wrong?

If you’d like to connect and chat about passive real estate, feel free to DM me. I can share more details about the types of deals I’ve invested in.

@Mitchell Truong

From the research I've done, Ohio is a great state for several reasons: it's a landlord friendly state, cap rates are 6-8%, even higher in some pockets, relatively low vacancy, lots of job growth and some population growth. Dayton is great because it has some of the more attractive cap rates and vacancy of around 5%. I am not yet familiar with specific areas though.

Because of the high cap rates, your question does make sense. But here's the thing: not everyone wants to buy their own place. Some prefer to rent. Some also don't have the means to come up with a downpayment or have low credit history so they can't get a mortgage. But overall, I agree with you that people who can figure out how to purchase, should because they'll pay similar in monthly expenses and get the benefit of owning a place.

Just wondering, are you only looking at single family properties or considering multi-family too?

 Hi @Jimmy Lieu I'd be curious to find out more about your experience in Columbus. I am in Ontario Canada, but looking to explore the Ohio market due to its proximity to Toronto and very attractive cap rates. I see you're a real estate agent, but do you invest in real estate personally as well?

Are you able to share insight about multi-family as well?

Thanks @David Steinbok!

I ended up hiring an architect for floor plans and to deal with the city. I needed to do a minor variance, which wasn't as bad as I thought it'd be and my architect did most of the heavy lifting. All in all, happy that everything worked out and I have a legal triplex in Oshawa!

Hi @Steven P.
I can help if you want. I own 3 rental properties in Ontario self-managing 7 tenants. Here are my initial thoughts:

As a small landlord in Ontario, my experience over the past eight years has highlighted significant challenges in managing rental properties effectively. One of the primary issues is the impact of rent control policies. While designed to protect tenants, rent control has adverse effects on the broader rental market. It discourages new landlords from entering the market and limits the ability of existing landlords to adjust rents to match rising maintenance and operational costs. This not only creates financial strain for landlords but also results in fewer rental units being available, exacerbating housing shortages for new tenants.

Another major challenge is the backlog at the Landlord and Tenant Board (LTB). The time it takes to resolve disputes, particularly in cases of non-payment of rent, is unacceptably long. This delays evictions and often results in significant financial losses for landlords. The inefficiency of this system makes it risky to rent to tenants without stringent screening processes.

Consequently, I have had to adopt extremely strict criteria when selecting tenants. I prioritize applicants with a high income-to-rent ratio, a good to excellent credit history, and a stable employment record. While this approach ensures more reliable tenants, it also limits the pool of prospective renters, making it challenging for individuals with less conventional financial profiles to secure housing.

Given these challenges, I have decided to exit the Ontario rental market. I originally invested in properties here because I live in the province, but the difficulties of managing properties under the current regulatory and economic framework have led me to plan for selling my properties within the next few years, once market conditions stabilize.

Hi all,

I am thinking about buying a Duplex that might have the ability to be converted to a Triplex. I spoke to the City of Oshawa (licensing department first). They said that kind of project would basically convert the property to an apartment building and requires R6B zoning. If the lot frontage is under the minimum of 25 meters, then I'd need a minor variance for that. There may be other variances as well. That needs to go through the planning department in the city. They require a site plan to get that started.

Has anyone had any experience with this and have done it successfully?

Have you ever hired a consultant to create a site plan for you?

Thanks in advance.

Triumphs: 

- Got one of my tenant out that hasn't paid rent for 7 months during COVID-19.

- Increased the rent in that house after he moved out.

Mistakes: 

- Blocked off access to the basement from the main floor because I thought I will be house hacking. This was not appealing to most buyers. Moral of the story: If it's a single-family house, make sure to keep access to the basement from the main floor even if you create another unit in the basement.

- Cheaped out on basement kitchen renovations, which hurt property value. An extra 5-10K investment would have increased the value by 10-20K.

2021 goals: Invest in at least 2 BRRRR deals in Durham, ON.

@Nick Pastore like some others said, connect with investor-friendly realtors and wholesalers. Join Facebook groups in your area as well. 

For example, this one is good for Canadians: https://www.facebook.com/group...

@Austin Sager I DM'ed you with the calculators I use as I know that BP doesn't like when links are posted in the forums.