All Forum Posts by: Matt Geerts

@Eddy Brasser

My townhouse was 150k, rents for 1200 and flows just over 200. I think you need to check your math on a 260k property at 1150 flowing. I am assuming 80%LTV, of course if you bought it cash it would flow.

Hi @Krikor Dedeyan  !

Although Toronto is on a different planet than London Ontario, I hope we can learn about REI from each other. Be sure to chat with Claude!

I have never run numbers on a 260k sfh that cash flows with a mortgage.

Ken, similarly, most mid-90s houses fetch prices that squeeze cash flow, from my analyses. 

As long as you aren't buying a tenantedbproperty, rent control seems to barely matter. Unless you are in a town where FMV rent is really rocketting like Toronto and Vancouver. Most renters that I know don't even get increases from their landlords because the market is so flat.

@Greg S. , you are incorrect in two fine details. 

1) You are NOT forced to take pets. You ask if they have pets, they say yes, you tell them to go away.

2) You MAY put a no-pets clause in your lease... you just can't enforce it ;) This at least keeps the good guys honest.

...But yeah, a tenant can simply lie to you and move in with a pile of pets and your only recourse is the local pet bylaws limiting them to some "reasonable" number. 

Okay, so you screen well, you manage well and you make "extremely high" ROI. Sounds good to me.

Nina Willis... I feel like every person who is getting into Ontario investing should be a sent a message that just says "Nina Willis", ominously. 

@Darren Horrocks I think that if you're not going for students you're nuts. However, sometimes nutty people get rich. Do you personally have experience with managing D-class people? Scenario: no rent paid by half of the house, you show up and everyone's high on crack and the kitchen cabinets are on the lawn. Are you prepared for this? If you are, heck, go for it. Frankly, I've heard bad things about the lower-crust in Barrie specifically, but that's just hearsay (and a long history of landlord stories).

@Caitlyn J.

Looks like you're doing your numbers.

I can only speak from personal experience on this one - your deal looks secure at the appraised value price, but it also looks like you're out of next steps. I just did that to myself. After closing that put me back at zero and I can't move forward. I bought this "secure" house to convince my wife that this is a good idea, but I really wish I could have got something that I could refi the cash back out of after some renos so I could move on to the next one. 

If you're keeping one eye on the next step and this works out, then I don't see a glaring problem. Let us know what the seller does when you slap them with a major price reduction due to the appraisal! :D

Here in Ontario you can't charge a pet deposit. You can't evict for pets, no matter how many times they chew the baseboards or piss on the laminate. Good luck trying to get an order to pay for pet damages. Every pet is their owner's little angel. My first rental property was responded first by 5 pet-owners clearly ignoring the no-pets statement in the ad and emailing me about how wonderful their three dogs are, or their 6 month old shepherd, or their two old cats.

Somehow the Ontario govt seems to think that not allowing pet deposits or evicting for pets is protecting people. All it does is completely close my doors to pet people. That feels awful for me because I AM a pet person. ...and let me tell you, they are little angels. Ha!

NO PETS.

You've allocated $0 for maintenance because they were just renovated? Is the renovation crew giving you a 100% warranty? (That was a bit of a sarcastic question).

Land tax? Vacancy % with relisting costs? Does your cash/cash ROI include the closing costs and initial costs of tenanting in the 'I'? How about the cost of evicting some tenant that they stuck in there to fill the unit without you having done your own screening on them? What's your local vacancy in the those top-dollar rentals, will you even get them filled at 1175 or is that a bit rosey?

Even without all of this rain on your parade, 8% is kind of... "meh".

The low appraisal also shoots the selling exit strategy in the foot.

Why are you using the word "or"? Just about every investor, until they are very successful or were handed dynasty wealth, also has a day-job. Realtor is just a day-job. It happens to mesh well with real estate investing. You could as easily as if you should be a stock broker or an investor. A used car salesman or investor.

I am a Computer Engineer AND investor.