All Forum Posts by: Matt Geerts

Greg, I have generally been in agreement with your take on LTB and such, but are you going a bit into hyperbole here, or are you dead serious? Why do YOU invest in Ontario? Maybe you should buy a Tim Hortons or something. I'm not trying to throw accusations in people's faces here, but one must always look to improve oneself - perhaps you have a problem with tenant screening?

In London/St. Thomas I think that 1% is doable if you're buying well. Certainly not MLS to rent.

Of course, if you're paying your tenants utilities then 1% is very doable, but that's cheating.

As for Greg's ill omens of Ontario - I'd say that if you're going to invest remotely here you'd better be jumping into bed with a manager that is well vetted and focusing on screening. Also, staying 100% away from "low end" rentals. Trying to wrangle government-assisted people (who you can't sue no matter what they do) remotely is just asking for your retirement account to be drained.

@Rekha Nathoo Welcome to BP!

I agree wholeheartedly with @Thomas S. about the reading the RTA and doing some research about how the LTB operates. I especially suggest that if you choose to landlord in Barrie because that town became rather notorious on another landlord forum for its problem tenants. There's nothing wrong with investing there, as long as you are confident that you are bulletproof from bad tenants.

Investing in Toronto is tough right now. I have a hard time believing that any new investors are getting positive cash flow there - if you plan to buy and ride appreciation you're not investing, you're gambling. You'd be doing well to find "bedroom communities" outside of Toronto. I grew up in Georgetown which would have worked for you ten years ago, but has since tripled in value. Just look around the dozens of towns that are within driving distance of the city - Brooklyn, Orangeville, Hamilton (I am hearing good things here). Follow the expanding highways (410, 404, 407).

Let us know what you've been looking at, I'd love to hear about it!

That's my plan moving forward. The key for me will be finding:

a) Sellers who need to dump a property that needs lipstick, but is fundamentally solid

b) someone to carry the short-term loan with very low down payment (sub-20%, non-owner, first mortgage, likely with a higher interest rate) based on the facts that I have bought it below market, and I will immediately be increasing the property value when I am handed the keys.

I am going to look into people who are inheriting a home that was last decorated by their grandmother in 1950, and people who are incapable of screening bad tenants and just finished their third eviction this year :)

Just a reminder to all about next week's meet-up!

If you know anybody that wants to work with investors for capital, contracting, etc, invite them along! 

Woah... my calculations of 10% ROI (with my own knowledge and work to install) was with 12c/kwh.

Maybe I need to be considering a large south-facing roof on my next rental!

Unrelated to real estate I recently crunched numbers on Solar. I'm a Computer Engineer and a handyman, so component purchase and install is different for me than Joe Investor. My bottom line on paper was 10% ROI, which is a "not bad" investment.

There are two competing factors to consider here:

1. Ontario hydro prices are rising quickly and only a moron would think that they won't continue to do so. Having your own source of electrons is just good planning. "When" I have my dream home built, it will be fully off-grid.

2. The price of panels is and will continue to fall. As more staunch opposition to technology opens their eyes, the volume of production will rise and prices will fall. This means that when you are selling a house with 20k in panels with a 10-year life left in them 15 years from now, you cannot expect to have 10/25th of their original value in "capital" as a benefit to the sale of the house. Those panels will be half the price 15 years from now.

As for their value to a renter... Where I am the population of hipsters has not risen to the point where they are a market force, so I have no input. Some people might like bamboo floors, hemp drapes and solar panels, but they don't mean squat in my market.

@Derek Allen

Again, sorry... how am I calculating income and expenses differently? Perhaps quote what I said and explain what's unclear so I know what you're asking.

@Kellan P.Yes, the goal will be $200 per unit in my upcoming houses. I have >$200 from my SFH investment, but I did not meet my 15% cash/cash goal because I invested too much cash to buy it.

When you figure out an avenue of low-priced off-market in London or surrounding area, I'd love to hear it. I have some ideas, but I don't want to send you down an untested path.

However, $200/dr and >15% CoC is achievable from MLS. You just need to find a realtor who is willing to pound pavement for you. I've got a guy if you want to PM me.

Hey @Giuseppe Pavone

My RE empire has just lifted off the ground, so I'll be happy to learn what I can from you. 

Have you played with the improve-and-refi game much? 

@Tyler Bruce

Wow, you killed that. You were really swinging for he fences on ARV. Looks great!

What did you learn about flipping in Kingston, Ontario?

Is that laminate flooring?