All Forum Posts by: Milo Milosovic

Hi Christopher, 

I personally look at KPI’ s like cash flow first and only consider appreciation as icing on the cake. If you invest leaning towards appreciation that’s more like gambling in my books. An area may have a strong history of appreciation and I think this Covid situation has shown that situations can change dramatically. That being said some larger markets still have strong growth like San Francisco, Toronto, etc but even those may have specific pockets within them that perform differently. 

You may not be able to hit a home run in all KPI’s and need to determine the ones that are important to you. Again, I don’t put much emphasis on market appreciation because it is not controllable. Forced appreciation is another matter and is always great. 

Hope this helps a bit,  

I personally don’t like the term low ball, it starts off sounding like someone is being taken advantage of. Instead think of it as an embarrassing offer. Can be 20-30% off list and really depends on what the market in that area is doing. You need to run and know your numbers in order to hit your criteria. 

I find $100 a door to lean for my self and target 200-250 and usually that means a property with more than 1 unit (Alberta). Set your criteria first and if an offer doesn’t pan out move on. Keep emotion out of it or you will pay the price. Make sure you account for ALL your expenses, vacancy, maintenance as well and don’t use any of these numbers as “cash flow” if they don’t get spent. At some point they will need to be spent. 

Think of a landlord that didn’t keep a reserve and all of a sudden Covid happened and maybe their tenant couldn’t pay rent for months. Unfortunately these folks have found themselves in rough spot. 

Know your numbers. 

Know your market. 

Make offers that work for you. 

Kyle, 

Congrats on reaching that milestone. If you do not enjoy your current job you now have the option of doing something else you would enjoy, even part time. The journey to time freedom doesn’t have to be an all or nothing deal. You have now given yourself the freedom to make choices and not worry if you can pay the bills. You could even experiment with different job types and look at it as “test driving a car”. You may find something that you are more passionate about that will help you make the transition since you don’t need a full or high salary now. 

You have opened a huge door for yourself. Take a peek inside ! 

All the best. 

Wow! 

Congratulations Steve.  This is the type of multi family I am moving toward from small multi (2&3 units). I am inspired by your creativity. I know these deals can take a bit longer and worth it in the long run. 

Great job!!

Hi Daniel, 

It may be getting settled as part of the estate and it may also end up with a family member(S) that have no desire to hold real estate. If you can find them, approach them to see if this is the case and let them know you can offer a solution to their problem. You can save them the headache of having to list the property and maybe they would be interested in hands off cash flow monthly if they are interested in seller financing to you. Find out what it is that they need and you will probably find they will be more open to working with you. 

Good luck, 

Milo 

I totally agree with Nick Robinson's points.
The ability to base the value on NOI also gives more room to refinance and pull your original equity out faster than SFR and you are not totally dependent on what the market is doing. This is why we are also moving towards this strategy from 2-4 units.
As far as selling, it does typically take longer to do proper due diligence and close on larger properties and by the time you get to that point I'm sure you will have planned ahead enough for the timeline.
Also instead of cashing out, think of creating a company that can provide generational wealth for your family.

Enjoy the journey!