All Forum Posts by: Michael Currie

When my wife and I first started out investing, we lived in our flips.

It can be a great way to get a house with a low or no downpayment, also if it takes time to sell, it is not a big deal.

The big thing to remember with flips is they usually take longer to sell than you expect.  A lot of people leave out some of the carrying cost details when they say how much they make.

That being said, the bigger money is usually made if you can change the use of the property, either by re-zoning, sub-dividing or adding units.  It may not be possible to live in a property that is having extensive work.

When we did not have kids, it was pretty good, as long as you are ok with the following:

You will be living in a construction zone, that does not sound like a big deal, but I can remember my wife and I thinking after our third project, that we would love to buy a house that did not need any work.  It is just irritating living with dust, and debris, plus waking up with a contractor in your room.

You may have to leave on a moments notice when you list.  One project we had a full price offer, however, the condition was we had to be out in two weeks.  

When you have kids it is harder, one of the motivations to switch to buy and hold investing, is that moving with kids is tough.  Having a house for sale with kids, trying to make it look like a museum for showings is tough (not to sound like one of "those" parents).

In summary, if you are single, or a couple, I say live in your flips as long as you can stand it.

If you have kids, it will depend on what your full-time work schedule is like.

I hope this helps,

Michael P Currie

It might be too late, but I figured I would submit a video anyway.  It was hard to sum it up in just 45 seconds.

https://youtu.be/u_gUcGEZ3Ic

In my opinion if the properties are within 1 hour, you should manage them yourself.

If you decide to buy more, you will likely grow tired of doing it, however,  It really is not a huge deal to manage a few units on your own.

You will need some good contacts for repairs, but with the right people in place as long as you are ok paying for service, it is just a matter of the tenant calling you, you call the right repair person, and the problem gets handled, you can be anywhere.

It comes down to proper screening and following / learning about the tenancy rules in your area.

Property managers will all sell you on the set it and forget it, however, I have had some property mangers that take more management then the tenants.

Good property managers that use proper software and have several staff in place to handle issues are usually higher priced, but could be worth it.

Then there are several that do property management on the side when they are not busy as a real estate agent, home inspector, etc...

There are also some maintenance people that claim to be property managers, but sometimes lack the people skills, which are really important as a property manager. 

The bottom line is to build the cost into your evaluation, then decide what you want to do.

I will also say that A and B type properties can be a lot easier to manage than C and D buildings.

I hope this helps,

Michael P Currie 

Thanks,  I am happy to be on here.

It is a stable, sort of boring market.

If you place a great ad, and screen well you can find tenants pretty quick.

Since not much changes in the local economy (university / hospital / military town) the prices do not increase quick, so it is touch to get a lift in value on a building without doing big renos or holding for a long time.

Michael P Currie

Thanks, 

I appreciate your response, I was not sure how many Canadians were on this site.

I have another NB friend on here Tony LeBlanc.

yes the registration starts for the upcoming CAM course in December

It starts in January (6 - 9) Tuesday nights until the end of April. NSCC leads street. 

The marketing VP from Killam (Jeremy Jackson) is heavily involved in arranging the course.

I would not want to speak for him, but considering they have buildings in your area, I am sure they would be willing to help set up a course.

We have rented to students and use a parental co-signer.

The co-signer needs to qualify for the amount of rent and be screened properly.

One thing from the original post, may need a bit of clarification.  

Is the income screening criteria of 3X's rent legal, and applied to all potential tenants.

(My screening criteria requires income of at least 3 times the rent.)

A lot of tenancy boards require the landlord / property manager to have a defined screening process for all tenants.

What I mean by that, if you requires 3X's income for one, you need to use the same criteria for all, if the income is unverified, then you need to write in your plan, 3X's rent or a qualified co-signer or guarantor.  That way you are covered if you turn down a tenant, they complain, and your process is called into question.

the other thing to note is that if your 3X's the rent income criteria works for you, and you have little vacancy, then stick to it.

Problem tenants usually begin with a bend in a rule, or not having any criteria to properly screen tenants.

Michael P Currie

I am brand new to this site.  I started doing some home flipping from 2001 - 2009, then got into buy and hold.

I am at a cross roads, so I recently sold some properties, in an effort to have a portfolio of quality over quantity.

Not exactly sure what my next move will be, the big challenge for me has been learning about tenant issues, and dealing with some unexpected repairs, both my wife and I took a course and are IPOANS CAM Certified (Certified Property managers).

We only manage our own properties, plus have a couple of hired property managers to help with some out of town units, however, I have been studying tenancy rules, laws, and have become addicted to answering property management questions.

What attracted me to join this site, is all the different types of real estate investment people are involved in.

I look forward to participating in the forum.

Michael P Currie

Welcome to Bigger Pockets, I am addicted to answering questions on property management, if you ever have any.

It sounds like you are on the right track with the education side of the business.

My words of wisdom are:

Good property managers are worth their weight in gold, look for strong property management companies in the areas you want to invest in.

Property management, tenant relations and maintenance are the most important part of the investment game.

When you buy your first property and make your renovation list, remember that the roof you think will last 5 more years, may only last two.  Have a deferred maintenance plan.

Michael P Currie

[Moderator's Note:  Removed self-promotion URL from forum post]

If you are permitted to give her notice to vacate by the end of September, that would definitely be the right thing to do.

She mentioned "she knows her rights" which means she could get some support from a legal aid lawyer.

Once a tenant is in, they have the power, so it is really important to have a well documented process.  The tenancy boards have a high expectation of landlords and property managers to know and follow the rules.

In the future when you buy a property, if you are suspect of the current tenant situation, you can ask for vacant possession, so on closing date the property is empty, or make a deal that a particular unit is vacant.

The current landlord could have paid the current tenant some cash to leave before you took over the building.

Good luck, and the great news is that once this small hurdle is overcome, you will be able to place a well screened brand new tenant.

Michael P Currie

[Moderator's Note:  Removed self-promotion URL from post]

I agree, we have a few rooms rented in a separate part of our house.  We include all utilities, and WiFi.  The other option would be to contact the power company and figure out approximately how much it will cost to run the AC unit.

I have a friend who has been doing a separate fee for water.  The rent is one fee and then they charge a water surcharge.

I believe keeping it just one set all inclusive price would be the easiest way, unless you believe it will make your advertised price too high.

Michael P Currie