All Forum Posts by: Reagan Wilson

When you guys calculate ROI on a rental property do you typically include the equity gain from paying down your mortgage?

Just trying to compare the returns on my rentals versus my investment accounts. I currently have two rentals that are cash flow positive running at 6.7% and 8% ROI. But if I include equity gain that bumps up to around 16% on both(have not deducted for vacancy/repairs). Investment account looks like I get an average of 10% (not guaranteed)

Just trying to determine what to focus on in the next few years. What ROI makes it worth it for you?

I have a rental property with up and downstairs tenants Just recently the downstairs tenant has complained about them getting a smoke smell from the upstairs neighbours in their unit. I don’t know for sure if they have smoked inside or if the smell is just coming back on them or through a door or window

In the lease there is a no smoking policy indoors Just wondering how to address this without increasing tension and accusing the tenant of smoking indoors when I don’t know that’s the case

I’m 22 just bought my first property this past April and it isn’t the most fantastic purchase thus far.

I’ve only made roughly $700 thus far including equity gain in the property.

I do not live in this property and what I am fearing is tax time. When my rental income of roughly 25k is tacked onto my regular wage which will be roughly 150k this year that’s going to break me

Going to end up paying close to 40% I imagine.

Is this just a bad purchase or is there any way to reduce my tax on rental income?

They tax rental income not profit correct?

@Jeremy Kitchen

Not sure whether I would live in the property or not I was going to weigh out living in one side. Or seeing what cash flow I could get renting out both not really in a rush to move but if it’s better off that way I will

Just wondering what everyone's thoughts would be I'm starting to look at getting my first property (mostlikely duplex) the bank is recommending I put down 20% which is roughly $100,000 which isn't a problem but I'm worried about wrapping that much money up in the deal and halting future progress also giving me low ROI%

Or is it easy enough to get money back out with a refinance to where it’s a non issue come time to buy my second property?

Are you planning on renovating said rental property? Just curious because I am looking for a fixer-upper and planning on doing the majority of the work myself. So for me it would make sense for me to put less down and call it a primary residence because I will be there the majority of the time anyways until I get it rented. That way you can focus more on the renovating side and after a year move out and increase cashflow. Really all depends on what you are looking for

My knowledge is somewhat limited when it comes to this, every time I have talked to the bank about financing and rental property that will not be your primary residence they have told me I need 20% down. Where I live in order for it to be considered a primary residence you only need to live in it for 12 months, so if you save a bigger down payment and movin short term you can move out later on to increase cashflow

@Chris Schmidt

I appreciate it definitely something to look into but if I can avoid that area I am going to just because it is not very desirable

@Trevor Aydelott

Edmonton seems to be decently priced across the board for anything decent your looking at at least 200k most of the time varies a little bit North to South side . There are cheaper options out of the city but I want my first deal to be in the city before I start investing at a distance and I also have no clue about other markets.

@Jonah Simmons. Yes it is north side and around that area I don’t have the exact address probably the same one. I am not planning on buying that property it just got me thinking about duplex triplex four plex deals. And I did have that concern if I bought in that area what kind of renters I would be getting. I was raised with my parents telling me you have to have 20% down and pay off your mortgage in 10 years to avoid interest. But it seems that every investor wants to go for that 30 year mortgage and put as little down as possible.