All Forum Posts by: Matt Belzile

Adding sheets of 5/8s drywall with green glue noise sealant between the drywall layers I heard is very affective. I haven’t tried it myself, but I’m tempted as I’m having the same issue between units. 

I'm wondering if my fellow Canadians depreciate their rental buildings? If so why? Does it come back to bite you when you sell? 

Thanks,

Matt

Hi Tyler, 

Have a look in Gatineau, prices are much lower while having a similar economy as Ottawa. lots of families live on the Quebec side cause of the cheap daycare and they are typically  great tenants. Prices have been creeping up but there's still some deals to be had where Brrrr's are possible. 

- Matt

Vancouver is tough. I know people who run successful Airbnb’s in downtown. But I’m wouldn’t want to rely on Airbnb with out a back up plan. 

I have found deals that made sense in Vancouver’s outskirts. The detached market has soften quite a bit and there’s opportunities in finding properties that need work and that you can add value and cashflow by adding a rental suite or carriage home     But it’s not easy to find... 

- Matt

@Steven Choi Not exactly sure what you are asking, But if I'm reading it right you are wondering if we consider the principal pay dow as taxable income?

I think this is how it work: the extra income you make on your investment property minus your expense for that property (interest, property taxes, insurance etc.) is taxable at you marginal rate based on your total income. So that being said your principal pay down is included in that "income" 

Or are you wondering if we look at our returns after our income property is taxed? if so, I've never really considered that. I tend to have a lot of expenses to be able to keep my tax payable low. 

Hope this help

once I hit 5 mortgages I was having such a hard time with the big banks. Lately I’ve been working with credit unions, they’ve been way more willing to work with me and their policies aren’t as stringent. 

Hi Cameron, 

I've worked with plenty of Brokers and Banks for my buy and holds. Most Banks only offer a 50% rental offset and a cap of 5 rental properties... This made it very difficult to find decent financing. Where I have had the best luck is with Vanity because they work with a 75% rental offset and they didn't care how many rentals I had. 

Good luck

Kate, Happy to fill you in on the area. I invest on in Gatineau (the Aylmer area) which is on the Quebec side and is much easier to find cash flow property than in Ottawa. 

The rental market has improved significantly in the recent year and you can find turn key properties that yield 5-6% cash on cash return. Or with some digging you can find some 10% CoC returns but you have to be willing to put the work into these properties and be ready to jump on them. So far I have found everything on the MLS.

Let me know if you have more questions! 

1. I am investing outside my providence of residence but I grew up here and my family is still here, so I have some boots on the ground people in the region. No restrictions besides the flights over once in a while. No additional tax implications that I know of. 

2. I just used private money for the initial purchase and then got a mortgage from a bank

3. My last deal I bought for $157,500 and put ~$16,000 of my own money into the rehab and it appraised $232k after repairs. I could have taken 80% of the $232k but only took $180k from the bank. The property is rented for $1300/mo and I am cashflow positive. I essentially have infinity cash of cash return because I got all of my money back from the refi. 

Now, this was a great deal and I am having trouble finding similar ones but they are out there! I just purchased one for $165k and just started the rehab on it. I'm hoping it'll appraise around $220k after ~$15k-$20k rehab. 

Hi Mahmoud, I have done it on the Quebec side (Gatineau) but I used private money. The banks are getting tighter on lending so I would make sure that you will be able to get approved for you desired refi amount before jumping into a hard money loan. 

Also, I've been hearing of people having more luck with financing through credit unions. I haven't needed to do that yet, but lending through the big banks has been getting harder for myself. 

Hope this helps!