All Forum Posts by: Kyle Madden

Hi everyone, Alicia Marks made a post on the general forum asking about any changes in the market. But it lacked any Canadian investor's insights and mostly contained comments from our fellow Americans. So let's see what is happening in Canadian Real-estate, whether residential, attached, detached, commercial or anything else, especially as BOC announced looming interest rate hikes what are you noticing?

I live in Fraser Valley, BC about an hour outside of Vancouver. I am Noticing huge drops specifically In the townhouse market I follow mainly. For example, comparable units selling 3 months ago were 900k, are now being sold for 790k.

There are pocket neighbourhoods that still have low inventory and high demand so those are being scooped up well over asking still… such as areas in Port Moody, North Van/East Van, however I feel most markets peaks were mid Jan-Feb.

My prediction is June we get another .5 rate hike, the summer will be quite slow with buyers waiting to see what happens to the market. There will be deals with bully offers that we as investors can now take advantage of throughout summer into 2023, let’s go!

1 Vote

Quote from @Allan Smith:

You are correct to assume that this is not a good tenant. I would agree with that. However the Great Deals often have baggage with them and many times it is Tennant related baggage.

here is what I would suggest. As soon as you buy the property scheduling meeting to "train" the tenant. Set expectations how it's going to be with the new sheriff in town. Hope for the best. When the tenant starts being difficult as they most likely will, enforce your lease and proceed to give them notice to leave as needed. Most likely this rental property is not going to be that helpful of an asset to you until this tenant is out but you can at least give them a chance. Just make sure you are getting a good enough deal for it to be worth the hassle.

Good call! Thank you very much. I should add that I live in Canada, which is extremely tenant favoured vs landlord. So enforcing the lease is quite the process, but still possible if justifiable.

1 Vote

Hi everyone! Quick question, what’s everyone’s view on purchasing a duplex that has tenants in them already? I know David talks about screening tenants and making sure YOU choose a good fit for your place, as it can make or break your rental property. My numbers work with the rent they are paying, however my realtor has informed me 1 tenant is already extremely difficult (being rude to him, not cooperating with timing of showings, etc). To me this shows they could be a problem tenant.

Would you still purchase the property?Is it worth the headache? Or am I assuming they are already a bad tenant, and they could actually be a fine tenant.. any help would be appreciated thanks!

2 Votes

Originally posted by @Chris Baxter:

Welcome to BP, @Kyle Madden. Residential mortgages (4-5 units and less, depending on lender) are primarily based on your PERSONAL ability to carry the mortgage. Assuming rules haven't changed (I haven't done a residential mortgage in some time), lenders count only half the income against 100% of the expenses for rental properties during underwriting. This means that at some point (usually after 3-4 properties) your debt service ratios are out of whack and you no longer qualify for a conventional residential mortgage. Strategies to continue to grow include:

1) Get a partner to be on title and help qualify

2) Use private money

3) Move to commercial properties (5-6+ units)

I made the jump to commercial multifamily a while ago and haven't had any issues growing my portfolio. Commercial mortgages are mostly tied to the property, using criteria based on NOI and LTV. Your net worth is also considered in underwriting, but lenders typically only look for a net worth of ~25% of the property value.

There are many mortgage specialists on this forum that can provide more detail and insight, and I'm sure you'll see some responses pop up quickly. Good luck and have fun!

0 Votes

Hi there, I’m Kyle and a beginner real estate investor. I have my primary residence here in BC, and 4 months I purchased ago a rental in Windsor making me 500/ month. I am now looking to purchase another property … however my broker told me I can only afford another place up to 300k. . My question is… how do people afford so many doors? After 3 properties do people have to turn to JVs where your partner holds the mortgage? Is it commercial lending I have to turn to, where the lender doesn’t look at my income? What other ways are there other than the two I stated? Any help would be appreciated!

cheers Kyle

0 Votes

@Chris Baxter oh and sorry yes my plan is to work the BRRRR strategy and repeat the rehab/rent/refinance strategy multiple times.

1 Vote

@Chris Baxter thank you for your advice! I will use what you provided me with , do some research and execute.

1 Vote

Hi everyone , please need some help/guidance! I am NEW investor in Vancouver BC. My strategy and goal is a LONG TERM RENT AND HOLD, SINGLE FAMILY HOME. I have read David Greens BRRRR strategy book and Rental Property Investing by Brandon Turner and have listened to BP podcast tremendously. I want to complete the BRRRR strategy however prices in BC are FAR too extreme. I have about 300K ready to go to buy a house cash out of province, (250k purchase, 50k BRRRR is what I figure). Can I have tips / guidance on investing out of province? I'm a little nervous to make my first investment out of province, which limits my sweat equity into the house/ being there to resolve issues. Any help would be greatly appreciated!

2 Votes

All Forum Posts by: Kyle Madden

Kyle Madden has started 3 posts and replied 8 times.

Post: Are you noticing changes to the Canadian market?

Post: Purchasing Duplex with 1 Bad Tenant?

Post: Purchasing Duplex with 1 Bad Tenant?

Post: Financing Investment properties!

Post: Financing Investment properties!

Post: First Rental Property!

Post: First Rental Property!

Post: First Rental Property!