All Forum Posts by: Paulo Ascurra

What Mark failed to mention with his cut-n-paste greeting is that much of the content in those blogs is US-biased. While the basic premises will be the same the details of investing in Canada, and even more-so, Québec, are different than in the U.S.A. - financing, regulation, taxation are all different here.

Thanks for your answer Roy. Do you think that it would be better to invest outside Quebec?

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Originally posted by @Mark Nolan:

@Paulo Ascurra

Welcome to Bigger Pockets. Make sure to check out the very informative blogs.

https://www.biggerpockets.com/blogs

Thank you Mark for sending me the links. I will explore them

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Originally posted by @Frederick S.:

@Paulo Ascurra

I use CMHC harmonized expenses which are used when lenders crunch their numbers as well:

-2% Vacancy

-5% Management

-470-500$ / Unit maintenance (yearly)

-290$ Unit Janitorial (yearly)

-Use actual tax numbers. It's so easy to find using the municipal assessment roll: https://servicesenligne2.ville.montreal.qc.ca/sel/...

-Use actual insurance numbers.

Never buy below 5% cap using these numbers.... I can provide a spreadsheet with built in calculators that I use if you would find it useful.

Best,

Thank you very much for your comments and answers Frederick. I am very interested in your spreadsheet. Would you mind sending it to me please?

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Originally posted by @Chris Walters:

Hi Paulo Ascurra

Welcome to BP! I've been looking at the Montreal market and come up with similar results; many negative cashflowing and 1 to 5% positive cashflow. If you want, we can connect and compare our expense percentages.

Montreal seem to be a tough market, which would explain why some investors are investing further out.

Contact me if you need anything.

Cheers,

Chris

Hello Chris,

Thank you for your comments.

Nowadays I am looking to buy a quadruplex in Montreal or surrounding areas. For expenses, I used the following percentages taxes 1%, insurance 1%, vacancy 7%, repairs 5%, capital expenditures 5%, property management 10%, mortgage depends on the value of the property ( I am planning to pay 20% downpayment). I am not considering water/sewer, garbage, electric, gas, HOA fees, lawn/snow in expenses. If you could give me any suggestion, I would be really appreciate it

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Originally posted by @Thomas S.:

Number are numbers. The results you are getting are correct and for that reason investing in the Montreal market does not work. You need to find a property where the numbers do work or as most investors do ...look else where to invest.

The investors buying in areas like yours most likely have way too much equity in those properties believing paying off, or down, a property increases cash flow. The opposite is actually true and every investor in Montreal is probably losing real money.

I would suggest to look east to New Brunswick or possibly out west if you can not find cash flow in Quebec outside Montreal. Try the Hull area across from Ottawa, plenty of government workers renting there.

Thank you very much Greg for your comments and your suggestions. I will explore more the market outside Montreal

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Hello Chris,

Thank you for your comments.

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Good morning,

My name is Paulo Ascurra and live in Montreal. I am very interested in rental properties. I have been following bigger pockets webinars for 2 months. When I try to analyze properties applying the four quadrant method, it does not work in Montreal because most of the time I have negative cash flow and the return on investment (cash on cash) is very low around 1-2% or negative. Rentals properties in Montreal are expensive; however, the rent that tenants pay is very low. An example: I found a very nice triplex very well situated close to the subway with minimum repairs to be done. The value of the property was $485,000 and the rent for each apartment was $640/month. I think I am missing some important points about how to do calculations in Montreal. I understand US property values are cheaper and the rents are higher (depending on the area... I know). Could you give me any suggestion how to approach rental real estate in Montreal?

Best regards,

Paulo Ascurra

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Good evening,

My name is Paulo and live in Montreal. I am very interested in rental properties. I have been following bigger pockets webinars for 2 months. When I try to analyze properties applying the four quadrant method, it does not work in Montreal because most of the time I have negative cash flow and the return on investment (cash on cash) is very low around 1-2% or negative. Rentals properties in Montreal are expensive; however, the rent that tenants pay is very low. An example: I found a very nice triplex very well situated close to the subway with minimum repairs to be done. The value of the property was $485,000 and the rent for each apartment was $640/month. I think I am missing some important points about how to do calculations in Montreal. I understand US property values are cheaper and the rents are higher (depending on the area... I know). Could anyone give a suggestion how to approach rental real estate in Montreal?

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All Forum Posts by: Paulo Ascurra

Paulo Ascurra has started 2 posts and replied 8 times.

Post: how to analyze rental properties in Montreal, Canada?

Post: how to analyze rental properties in Montreal, Canada?

Post: how to analyze rental properties in Montreal, Canada?

Post: how to analyze rental properties in Montreal, Canada?

Post: how to analyze rental properties in Montreal, Canada?

Post: how to analyze rental properties in Montreal, Canada?

Post: how to analyze rental properties in Montreal, Canada?

Post: analyze rental properties in Montreal , Canada