All Forum Posts by: Miles Thompson

Hello,

Looking for general advice.

I'm looking to have a ADU built (laneway house) in Nelson, BC, Canada, where I own a rental propertly split into 2 rentals suites.

To get the financing, my income isn't quite high enough to satisfy the bank and they're asking if I can find a cosigner such as a parent. The cosigner would end up on the title until we are able to qualify for the entire mortgage myself, which may be right after it's built as I could then use the rental income.

My wife and I don't really want to ask her parents for a number of reasons. We already borrowed 25k about 18 months ago that we're paying back over 5 years, and there have been health issues.

We have a good friend how is actually also the property manager. He is familiar with rentals in the area and has helped us quite a lot over the past 10-12 years, arranging our wedding and always been very helpful, he's a super nice guy and has been like a 2nd father to us.

He offered to be a cosigner but after talking to my mortgage broker, she warned about having a non-family member fill this role. 

Does anyone have any advise how we can protect ourselves in this situation? Is it a bad idea?

Thanks @Scott Mac, you make some good points. I will definitely take these into consideration.

Hello,

I'm very interested in a piece of land that's come up for sale not far from Quebec City. It's 23 acres of forest on the water front:

The land is zoned A-14 so can't be subdivided and only one residence could be built if the owner uses the land for agriculture, logging, farming etc.

The zoning does allow for 'Gite Touristique' though and this is where I'm thinking this could be a great spot to build some ecolodges to rent out.

The land costs $270,000.

There is currently no access to the land, it's landlocked so right of way needs to be setup as well as all services; water, sewer, power.

I'm looking for someone to partner up with here to help figure this out to see how we can obtain this beautiful piece of land and turn it into a successful business.

Please send me a private message if you're interested.

Hi @Josefine Yacksmith,

I’m looking for deals to compare with a investment idea I have to build a laneway house at my property in Nelson, BC.

I’m currently living in Quebec, have a house here and looking to refi the Nelson house to get more doors.

I was wondering how the market is around Ottawa and if it’s a good place to find cash-flow multiplexes/duplexes, at the cheaper end of the scale.

The laneway house idea would cost me around $300k and bring in around $2,275 in rent. I was hoping it would cost less to build but construction costs at the moment….!!

What would $300k get in your neck of the woods with what sort of return?

Thanks!

@David Majaess if you’re looking in Quebec province, there a school tax which is separate from the regular property tax so you’d want to add that too. 

I would have a separate expense for snow removal & landscaping. 

Update to this, looks like for a new build, rent for this two bedroom ADU would be closer to $2,275.
I’ve reached out to my mortgage broker and am waiting to see what he thinks. 
thanks again for all the feedback. 

@Melanie Dupuis

Good to know! I will look into this.

Thank you.

@Darius Ogloza Canadian $$

Thanks @Zorya Belanger and @Josh Arnold. The property is in Nelson, BC where housing prices have rocketed in the last 5 years but being a small remote town causes construction to be even more expensive. Rents are very high in Nelson due to the availability. My boss has built a 4 plex, each with 3bdrms units and they rent for $2675ea!

Yes, I'll work with a mortgage broker if I do pursue this but I agree with Josh about inflation. 

I'll see what I can do to bring the construction costs down.

@Account Closed

Thanks you all for the insight. I guess I'll have to look to invest elsewhere where the numbers make more sense.