All Forum Posts by: Marianne Lopez-Henthorn

@Juan Pardo you're totally right about house prices being high. I'm waiting for the impending drop in prices when foreclosures hit the market. Granted, that may come with higher interest rates. In the meantime, I'm saving as much as I can, trying to decrease expenses, and paying off our last remaining debt - my car (other than mortgages). Once I have the money I want to have for buying a house (about $50k), I'll reevaluate where I'm at I guess.

@Caleb Heimsoth I don't expect my oil-city apartment to appreciate. I've accepted that. I guess I could sell it and take the loss and slowly pay it off. I'll consider that option.

My other condo is just outside of Vancouver, Canada. It is not in an oil town. There is a lot of growth in Surrey, especially in the area where the condo is. I respectfully disagree about selling that condo to accept a loss, unless I couldn't afford the payments for whatever reason.

Not buying more real estate - I'll definitely have to think longer about my investment decision.

@Michael Kissi I'm surprised someone in Baltimore knows about little Fort Mac :)

You're right about my income being entirely depentant on me and my husband's jobs. Luckily, my job is fairly secure and it's the policy of the company I work for not to lay off its workers (it does lay off contractors, though)...but it's always possible that could change. That's one of the reasons I'm hoping to diversify my income with rental income.

My expenses are low, other than the mortgages. There's definitely room to cut down though, you're right. We're working on that too! Trying to finally be responsible adults! Haha

@Caleb Heimsoth fair enough. Neither of the 2 properties I own are investment properties. If I sell my personal apartment, where should I live? I would save myself from losing more money, but I would be in the hole $100k.

I disagree on selling the Surrey condo right now. Why would I accept a loss if I can afford it now and wait until it appreciates? Agree that it's a liability. Given me and my husband's income, I can afford another $500k home, given our DTIs and credit. Granted, just because I can afford it, doesn't mean I should. Also, if I lose overtime, that number changes. But given our incomes, we still have about $3000/month we're saving (without my overtime). We used to be irresponsible with money and spend a lot on travel, but now our debts are paid off (except for my car, which we're working on). My idea was to buy a sub $100k multi-family in an appreciating area where I can cash-flow. This property would be an investment. Do you think this is still taking on too much?

@Theresa Harris

You're right, I bought the condo in Surrey in 2018. I also agree that the market should appreciate in a few years.

I haven't thought about investing elsewhere in Alberta. I've been hurt too badly because Fort McMurray is too closely tied with oil, and unfortunately so is the rest of Alberta.

I'll look into Prince George as an option, but I'll look into it. I've been considering investing in the US, in sub-$100k markets, because I want to make the most of the DTI room I have left.

@Tyler Yates

Thanks. It is a lot financially. They definitely don't like in anything fancy. It's an older 2 bed, 2 bath apartment. They just live in a very high cost of living city (just outside of Vancouver, Canada). My mom doesn't want to move because her friends and family are there. It's a lot to think about for sure.

@Taylor L.

Thank you. You're right, it would be a tough conversation, but $400k is a lot of money and though I split the payments with my sister, it's still an amount against my DTI.

Lots to think about for sure.

@Harry White

My thoughts too. I could buy a place here for really cheap and house hack it, but I can't stomach more losses like I've already taken.

Actually, my parent's condo is in Surrey. It's an older 2 bed 2 bath, and I think it's gone down in value a bit, but I know over time it should go up.

Thanks for your input. Their condo is just outside of Vancouver, so I suspect that market will stabilize. Having them move into a rental isn't a terrible idea and I'll bring it up with my sister.  I don't expect it to go underwater, but it's definitely possible. 

I've definitely asked them to move in with us, but my mom doesn't want to live where we live (she thinks it's too cold, and she's right haha).

My goal is to purchase my first real estate investment property within 1 year.

I have a well-paying job, good credit, no consumer debt (just my car, which I'm working to pay off), and I am working on a 20% downpayment + rehab costs.

BUT....

- I purchased my current home (apartment) 4 years ago. Since then it has dropped $100k in value. Paid $230k (Canadian - $CAD) and it's now worth about $130k. I owe about $170k. I live in a small town entirely dependant on oil, and RE prices have plummeted for everyone since 2014. But my well-paying job is here, so i riding it out. I suspect house prices to continue to decrease.

- I own a property with my sister in another city. My parents live there and we pay their mortgage, because they don't have enough saved for retirement and because they mean the world to me. Paid $400k, about $360k owing, probably worth $380k now. Prices have cooled in this area too, but it's in a major city, so hopefully it will stabilize in a few years.

- my job is stable, but I make almost half my income in overtime. With oil prices low, and consumption of oil low, we've cut back on overtime. Meaning I'll make much less this year than the past 4 years, if we keep going down this path.

SHOULD I...

- continue on my search for investment properties out of my town, keep working towards building a REI portfolio (although it may take longer to do so with overtime cut back

OR

- buy a townhouse here for $130k, rent out 1 or 2 bedrooms and house hack. (Keep in mind, I live in a 1 trick pony town) Rent out my apartment which will almost cover my apartment monthly expenses.

OR

- none of the above/some other creative solution

Ps: I live in Canada, so not all strategies that work in the States work here, too.

THANKS IN ADVANCE!!