All Forum Posts by: Itay Heled

my fellow investors!

I am about to close on a house in Cleveland.

Title company notice that in the certificate of disclosure that came back from the city

the "open lead hazard control orders after Dec 31 2010" box is checked. 

seller claim he has no idea why. should i continue with the closing? any advice? 

Thanks so much!!

Hello BP members!

I am selling a rental duplex In Barrie Ontario and wondering if the math i did  for estimated return on investment in 5 years  is correct. 

(just to clarify , my question is not if the numbers i present  in section A are correct. 

I am just asking if the math i did on section B is correct .)

A assuming the following :

purchase price: $539,900

buyer /investor pays  20% down payment : $107,980

mortgage rate fix for 5 years 3.4% 

annual appreciation on this market  5%

assuming cash flow of the property is 0  (tenant rent pays all expenses including mortgage) 

B annual return on investment :

after 5 years the market value of the house based on 5% appreciation  per year,  would be $689,900

mortgage balance at end of 5 years term $386,593

equity in property after 5 years: $303,307

net profit (equity minus down payment) $195,327

profit per year $39,065

annual return on investment (profit per year divided by down payment) = 36% annual return on investment

make sense?

thanks for your time

Itay

thanks for your feedback Tom. yes I am aware . not trying to do it myself remotely  but considering  doing it   with local partner that has the  construction  crew  & property management in house . 

he believes there is a room for profit. .  burnt in the past with  beautiful optimistic  promises from local partners... that's why I am looking for unbiased opinion & that is what I am trying to figure out.

Thanks for your feedback James!

last week when i visit Cleveland I saw a  3 bed 1 bath in Maple heights that   just  sold  as a turn key for 85 k but it may be the exception?  Duplex is an interesting option indeed.   

Hello BP members & Happy New Year!

I am considering flipping SFH into turnkey rentals with a local partner.

rough plan is the following  :  

1 purchase price 20-35k 

2 10-20 k rehab 

3 place a tenant and  sell for 60-85k  for out of town investors  ( 3 month turn around time.) 

any locals with expirience  doing this recently  who can share the demand ,the  challenges, and current market condition ?

Thanks!

Hi Alan,

I convert two SFR into duplexes in Barrie.

its a great way to improve  cash flow and add value. just like  the rest of the GTA, prices went up 

dramatically with multiply offer craziness Toronto style, until around March /April 2017.  then flattened and even dropped.easier to find deals now .

will be happy to share more

Hello BP members,

if I am the  seller, and buyer choose not have their own real estate agent , (yet didn't sign with my listing agent ) m the , is it still a common thing brokerage will charge me , the seller   the  entire 6%?

and if so, are they legally  representing buyer in the deal?

thanks!

Hi Prem & Bryce still waiting to get some feedback on Allstar...

Hello BP Members!

I am based in Toronto and I own a property in the east end of Cleveland.

 I am looking for a reliable property management   company to replace Sellers property  that shut down .

I spoke with Allstar Management and they sound nice and reasonable. I couldn't find much feedback online on them so i was wondering if any one worked with them or know of them here?

Thanks so much!

Itay

Hello,

my question: should I refinance? 

trying to wrap my head around a choice I have with a rental property

I recently finish turning a house into legal duplex.

new value is $430,000-450,000

remaining mortgage is $173,000

my mortgage is up for renewal On July 

bank is offering me 2.24 rate two year fix.

cash flow with this new rate will give me about $1000 per month give/take

However, I am considering using the equity to invest in a new property.

I can refinance with B lender at 4 % rate with $1000 lender fee and get $150,000  (cant refinance with bank)

would likely allow me purchasing another property, turn it to legal duplex and get around 500$ cash flow per month.

what is the best way to analyze the numbers and  compare those two  options?