All Forum Posts by: Marcondes Franco Da Silva

Hello Mitch, 

Congrats on your success! I would recommend looking at the return on equity in the different scenarios. Return on equity is basically taking the return on investment formula and replacing the denominator with your current equity rather than the money invested. This will show you if your money is working as hard for you as you want it to be! Then you can look at the ways to access that equity and deploy it into other deals and look at your new ROE in each scenario. It is hard to give more specific advice than that because the right answer depends on the numbers and what purchase opportunities you have. 

Feel free to reach out if you have any questions! 

One thing to consider is there is no guarantee of building equity in pre-construction. The last few years have been great for investors/homebuyers who bought pre-con, but looking back to the few years after the 2014/15 boom, this wasn't the case, where many had actually committed to buying a property that wasn't quite worth what they signed up for closer to closing because the appraisal weren't matching the contract price, requiring a cash top-up. This is one of the main inherent risks with pre-construction, and the pre-construction market has cooled, and with impeding tariffs, there is some uncertainty around where prices will be in the coming months.

One thing to clarify, are you looking to buy an investment property or a primary residence (or perhaps abit of both where you live in one unit and rent out the other)? In most cases, to achieve cashflow, you would be looking at a property with at least 2 units (main floor + basement suite). Happy to discuss this further on what might make the most sense for your end goal.

Just sent a connection request to you.

Hi @Sam Chicquen

My name is Franco, I'm from Calgary and a full time real estate investor. We have properties in Calgary, Edmonton, Red Deer and Beaumont. Would be a pleasure sit down with you, understand your goals and see if we can work together.

Talk to you soon.

Have a great day. 

Hey, everyone! Any real estate investors from Edmonton or Calgary here? I'm based in Ottawa and eager to connect with like-minded individuals for potential partnerships and deals. Feel free to send me a private message if you're interested!

Pre con assignment market is not really a thing in Calgary. You can certainly buy pre construction, but it's unlikely you'll be able to flip it. No hard limitation on supply in Calgary like Vancouver. So people can always just buy the next new build.

I would be quite impressed if you found a property in Calgary that can generate that much positive cash flow right now. A house in the 400-500k range usually rent for 2500 or so. Our rents in Calgary are much lower than what Vancouver is. 

Also assume your house is assessed to be 450k for property tax purposed then your tax would be around 2800 annually which is 200+ a month. Your insurance maybe another 100 or so.

So mortgage 2500 + tax 200 + insurance 100 + management 10% of rent (assume you need this if you are out of town?)

You are probably looking at 3,000 cash outflow a month. To generate a 500-1000 positive cash flow, your rent would need to be 3,500 to 4,000. That is quite high for the Calgary market.