All Forum Posts by: Account Closed

Hi,

I am 20, trying to purchase the first of hopefully many properties. I made another post several days ago, but would like to hear from more of you Ontario investors out there.

Looking to do a house hack duplex conversion BRRR in Kitchener or Cambridge, with the ultimate goal of achieving 100+ doors by age 30. A 5% down payment is definitely reasonable, good credit, no debt. Slow trickle of income right now from YT channel and odd jobs, set to ramp up gradually as I get into my electrician apprenticeship which I am starting in September with a local union, pay to start at min. wage for 4 months and up to around $19/hr for the first year, set to increase 10% of journeyman's wage (close to $50/hr) each year.

Here are just some of my many questions, in no particular order:

1. Can I get a mortgage for $600K right now (with or without cosignor?). This seems to be the price of the average bungalow with duplex potential in Waterloo region today, if not higher.

2. Should I avoid big banks (RBC, TD, ScotiaBank, etc.) like the plague in regards to mortgages and instead find a real estate broker specializing in investors? I heard that the banks dole of 2-5 mortgages and then it's difficult to get more, which does not bode well for my real estate empire plans.

3. Should I even attempt to find deals on MLS-based sites like realtor.ca, royallepage, etc? Or are off-market deals the way to go for me as a first time property buyer? Where do I find these 'deals' - door knock, real estate agents, flyers, social media, etc? Keep in mind I am starting from scratch here with no reputation.

4. If I can get a mortgage on the SFH I will need to renovate it so what is a good way to get these funds?

5. There's all this talk about 'analyzing deals', 'running the numbers', but where exactly do I find these numbers? Rents, property tax, utilities, etc. I have tried the free version of Rentometer and looked at the 'stats' section of these RE sites, but doubt the accuracy of this info. Do I find a comp, and call to find the rent?

6. Is it critical to find a real estate agent that is a RE investor themselves? If I want 100+ doors I should probably find a RE agent that has 150 doors in a perfect world, right? Where do I find these people, and why do they work as a RE agent if they are already making tons of cash off their properties?

6. I just saw a property on sale on MLS-based sites. Bungalow in Kitchener, side entrance, possible duplex conversion, list price $450K. It was a fixer upper if I ever saw one: worn floors, wallpaper everywhere, unfinished basement. The agent that wrote the description clearly embraced this fact. Decent area but high ratio of renters/owners. It sold within two days of accepting offers. Won't name the address because I don't want to cross any lines here. Would you suspect this property to have had bidding wars and possibly sold for $550-600K? From my limited experience I would guess the reno would have been at least $100K. The driveway didn't seem close to 6.5m wide so not sure how that could have made to meet the requirements for a duplex.

7. Do you recommend splitting hydro meters? Mat Piche on YT says that he always does this, and if I recall correctly that it costs approx. $5K.

I do realize these are pretty loaded questions but hopefully some folks out there can give me some good insight nonetheless :)

Thanks,

Lucas

Hi Josh,

I am a first-time investor also looking for real estate investors, agents, brokers, lawyers, etc. in KW region to network with. I am 20 and looking to 'house hack' a duplex ASAP.

From my limited experience the market appears crazy in this area right now, with sky-high prices and bidding wars left right and centre. Take this with a grain of salt because I do not own any properties and this is just based on what I've seen online.

What is your situation? Are you a first time buyer or do you have some properties under your belt?

Regards,

Lucas

Hello BiggerPockets,

This is my first post ever on here! I am 20 years old and looking to 'house hack' a duplex in Kitchener, Ontario, Canada but not exactly sure where to start. I know housing prices are at an all time high right now though it is often said that 'time in the market beats timing the market.' As a newbie investor looking to purchase his first property, this makes some sense but at the same time, I don't want prices to decrease substantially.  Nobody has a 'crystal ball' but the average price for a single detached home with duplex potential seems in the range of $500-600K asking price in Kitchener - isn't this unsustainable? I know there are bidding wars going on between average home buyers but what about amongst investors? Are rental properties selling for $100K over asking in Kitchener too? The videos I see on YouTube where people purchased their first property at $130K is just crazy and my eyes glaze over when I hear this because it seems unapplicable to today's market. Not complaining, simply observing.

As far as traditional financing goes, I certainly do not think I would qualify. My income is not that high at the moment. Currently training at a reputable local electrical union (unpaid) and will be starting an apprenticeship soon, with pay set to increase 10% of a Journeyman's wage every year. Making some passive income currently from YT channel and working the odd job. Good savings and credit score. Looking into a 5% down payment, and ok with biting the bullet of PMI and PST. Here in Kitchener with a duplex while living in it, it appears I will have to foot about half of the expenses. So, say for $3,200/mo in costs tenant might pay $1,700 and I would have to pay $1,500 out of pocket. In practicality that should not be an issue while working. As far as positive cashflow goes I feel that would take a while after I move out, right? Cashflow positive properties seem difficult/impossible to find in KW, and I know there are many who say "don't worry much about cashflow" but still it is something to think about, no? I want to do BRRR with this house hack and refinance ASAP and buy that second property.

I found a property listed on realtor.ca that has duplex conversion potential, near downtown, however it is a fixer upper (new flooring, painting, wiring) and is in a neighbourhood with 57% renters according to realtor.ca's 'Statistics'. Would this be a mistake for a new investor? I am fairly handy, but I want to buy in a good neighbourhood that will appreciate well and attract quality tenants.

I am assuming it would be very beneficial to speak with a local mortgage broker and real estate agent that specializes in real estate investing, but don't know any. Can anyone here suggest any that they personally had good experiences with?

Also, would you suggest starting a corporation for my first property?

If I said anything naive here it is simply because I do not have experience, which is exactly why I'm reaching out. So much learned already, but so much more learning and networking is required. There are always going to be doubters, but I enjoy proving them wrong. Eventually the goal is to create a real estate company with a portfolio of 100+ doors. I just want to get started now. It's not that I'm impatient, rather the opposite. I could read books and watch YouTube videos till the cows come home, but I would rather move out and begin this journey sooner than later.

Thanks,

Lucas