All Forum Posts by: Michael Wong

Hi Pawel,

In today's competitive, sellers market, you really have to put your best offer or very very close to it up front.  Have as clean an offer as possible ie: minimal or less subjects, decrease the closing time, or increase your earnest money (deposit).  Have financing already in place so your offer is a "Cash offer."  Put yourself in the shoes of the seller.  If they have an all cash offer, little or no subjects, fast close vs one w/several subjects, minimal deposit, long wait time, it's a no brainer for them.  Make it easy for them to get their house sold.  You could also write them a cover letter introducing yourself & your intent for the property.  Include a picture of you and your family or pet.  If the sellers can somehow empathize with you, they may choose your offer over another perhaps better offer.  It certainly doesn't hurt.

Keep making offers & eventually you'll land one, just be careful not to compromise your criteria.  I usually just have the inspection subject to give myself at least 1 out.  However, if I know I'm doing a full gut and I'm confident in all my #'s, I'll offer with no subjects.  

I would review the property management companies with a fine tooth comb.  What is their track record:  vacancy rates, online reviews, # of properties, experience, how they advertise, etc..., & most importantly, what is their % take?  I'm not sure about Kelowna, but in Whistler, some companies take upwards of 45%.  A real cash flow killer.

Hi Brianne,

I haven't looked too deeply into US investing yet, just window shopping, however, I recall seeing this from RBC.

https://www.rbcbank.com/cross-...

Let us know how it goes.

Other areas in BC may fit your criteria: Vancouver Island: Victoria, Nanaimo, Duncan. Sunshine Coast: Gibsons, Sechelt has had huge appreciation lately. I’m also looking into Prince George & around that area. I too like to be ‘fairly’ close to my projects. I haven’t gotten over distance barrier yet. 

Hi Kris,

I'm in Vancouver, not on the Island.  If you're planning on a virtual meetup, I'd be interested.

Hi Vijay,

What can really kill the cash flow is the Property Management fees. Here in Whistler it can be a low of 25% upwards to 45%! I'm not sure what it would be in Cottage Country, but unless you want to manage the property & the bookings yourself, it's a huge, HUGE expense. In your calculations, I would up the management fees & up the vacancy & see what your numbers tell you. More wear & tear too, so up the CapEx as well.

I would think short-term term tenants would have more issues vs a solid, well-screened long-term tenant.

M

A property management company can provide you w/the same data & they shouldn't be as concerned with you wasting their time by not becoming a client.

Hi Maya,

If it's generating (+) cash flow in it's current state & the tenants are good, I wouldn't touch it for now. I would get quotes and price out each of these repairs and do them as they come up, on an as needed basis.  You don't want go negative unless you really have to.  Keep that amount (+10%) in a Continency fund for these repairs (Capital Expenditures).  

Because you have 100% equity in unit, it's a good time to take out a Home Equity Line of Credit (Heloc), and use that $$$ for the purchase AND renovation of your investment unit. Try to stay at that magical 70% ARV. If that amount falls short, you can do a combo of Heloc & Hard Money Lender to finance the new deal.

Access to sold prices are exclusive to Realtors having access to the MLS. I would get in touch with a realtor in the area you're looking at with the intention of having them find properties for you to buy, given your criteria. Along with that, you can ask for sales comps.

You can readily find the listing price of similar units, but that's only the listing price, which may not have any correlation to the sale price.

In BC, you can look up the BC Assessment of the property, which will give you the Government's assessment for tax purposes, (usually in July).  This gives you an idea of how close a property is listed for against it's assessed value.  Again, just a ballpark.  

Moral:  find a realtor.