All Forum Posts by: Michael Wong

Hi Jatin, nice to meet you. I'm from Vancouver also.

Hi @mitchmesser. I think this may be what I need.  Thanks for the link. I have my diploma in Urban Land and have studied financial analysis, but I'm also considering doing another certification course.  Or else review my old texts at the least.  Cheers!

I'm interested in diving deeper into the how the internal Calculations work while using the calculators. I'd like to understand how changing the numbers change other outcomes. For example, if interest rates change or if it's an all cash offer, the step by step progression to rate of return, etc. I'm not satisfied w/just plugging in the #'s and seeing the results.  

Is there more info on the site for this? Perhaps a webinar or a resource?

thanks.

What is the exit strategy after the purchase? Having 3 separate Duplexes (or Dupli) gives several options. So I would analyze them separately and as a whole, & with different exit strategies (fix & flip, long term hold, house hack, BRRRR etc...).

Whatever you decide to do with the property after purchase will alter your numbers & affect your decision.

"I also noticed some properties have a lot of extra unused land. I'm wondering if anyone has any good ideas on how to capitalize on this? I was thinking of building a multi unit type garage and renting it out to the tenants or anyone nearby who wants to store their car or just have storage."

Hi Mark,

You will want to check w/the zoning to see what kind of accessory building is allowed on the lot. That will determine what you'll be able to build, if at all. If possible, build a dwelling rather than just storage, even if it's just a studio. Housing people tends to have a better ROI vs housing accessories. Again, your zoning will determine it.

Congratulations & well played!  

BC has the program where to help tenants as well as landlords. Provides up to $500 per month.

https://bchousing.org/bctrs?gclid=EAIaIQobChMIqcS90MLF6QIVmR-tBh1mOAUwEAAYASAAEgLP5_D_BwE

I'm not sure about other provinces.  Sounds like your tenant is using Covid to avoid paying rent, rather than working with you, especially if they're getting CERB.

I would talk to your bank to see if the can defer your mortgage payments.  Some will need you to apply, some will just give you 3 months just by asking.  They'll tack on those payments at the end.

Hang on until the moratorium is lifted & then evict them.  Document all your actions.  

Hi Bianca,

I would look for an older Duplex (buying both sides - the entire house) or a home with a secondary suite or Coach house.  Live in one & rent the other.  BP uses the term House Hacking.  If you're able to renovate it & improve it's value, you'll be able to charge higher rents, thus helping to pay off your mortgage.  Toronto is quite pricey, both as a renter & home buyer, so it may be difficult to find a property where the rent from 1 unit pays off the entire mortgage.  However, if the rent pays for a large portion of the entire mortgage then it's a win.

When you refinance in a year, the forced equity (renovation) should get you a higher appraised value. And you'll be able to take out anywhere from 70-80%. Keep the house, rent out both sides. Take the refinanced money, add that to any savings you've made in the last year & see how much down payment you can have for next one. Easier said than done, however, that's the idea. Finding the deal is the hard part. Check out the BRRRR strategy on BP.

Hi Eric,

Residential props are valued using Comps, while Commercial props can use Net Operating Income & Cap Rates.  The 3rd method, Cost to replace, I find is seldom used.

You've already nailed it w/Kitchen, Bath, adding Rooms.  I add a kitchen island if possible, low end stainless steel appliances, master ensuite if possible.  Also look at your suppliers to source materials via Contractor/Builder discounts, which can improve the bang on your buck.

Mike

I would probably raise her rent slightly, and raise the other 4 units the difference, on top of what you were going to raise them.  She's expecting you to raise the rents to market, thus having the move out.  You can be the "good guy," and only raise the rent a little.  Use the sleep test.  Can you sleep well at night raising or not raising the rent. Let your conscious guide you.