All Forum Posts by: Elias Dagher

I have to agree with Robert Tallent and say you should pass on this! Prices in GP and Alberta still have room to drop, and you definitely should include expenses for CAPEX and Property Management just in case, which means your cash flow will be near 0. Basically if you are CF zero, you are betting on the market to go up for your increase, and it is not likely the market will do so for another year or more. I would say wait for the market to drop a little more or find a different market with lower prices and potential for better cash flow.

Sorry dunno how my phone turned that into li dog....

Thanks for sharing Angelica Thrasher . Can you share the costs involved in adding a third story? It'd be great to see what li dog ROI the extra 3rd story yields.

Thanks for today Matt (and Dmitri - hope to see you next time)

Was great to meet and share ideas with everyone, and definitely looking forward to next time.

I sent connections to a few of you, but if I missed anybody feel free to drop me a connect request as well!

Until next time.

Elias

@Dmitri L., 

I'm new to the group but very interested in joining you on Thursday. Was directed here by @Dan Baker. 

Thanks Dan!

Hi Dan,

I see! 

Location is obviously key if you are looking at other areas (closeness to station, shopping, schools) etc.

In addition, in more rural areas, people tend to rent units for families rather than for single occupants.

Last, I hear it is really a nightmare to attract tenants. Some friends have told me about paying 2 or 3 months of rent to a PM company just to get them to find a tenant. In addition, the quality of PM companies can be pretty bad (just as in any market), and the language & cultural barrier can be a real challenge in you managing them. Some things to keep in mind when looking outside of Tokyo!

About the meeting you mentioned, can I ask the name? Even though I am not seriously looking at Japan right now, it's always great to network and hear ideas from similar minded people!

Hi @Tobin Cub,

First, can I ask if you have done some reading on how to analyze rental or fix and flip properties? If you haven't, I seriously recommend it.

About your question, again getting positive cash flow on a 300,000 dollar home in small towns where you can only get 1000 - 1300 CAD monthly rent is also going to be very difficult.

Two options you may have are:

Buying a property with 4 bedrooms and potential to build a basement/secondary suite. You could rent out both sides and should be able to break even in terms of cash flow. Or you could also live in the house as well and basically live on very cheap monthly payments if your tenant is paying part of the mortgage.

The other option is looking at distressed homes. Homes that need a lot of repair work or people who need to sell because of emergencies or problems. Repairing them would raise the value of the home and you could sell for profit (if you manage the repairs properly and within budget). Or you could rent it out after repairing if the mortgage principle was extremely low. 

Hi Tobin,

If you are working with limited cash, I think you have just answered your own question!

You are going to need to look outside of Vancouver if you want something cash flow positive.

Thanks Dan. 

I'm still here just for this year and might be tempted to purchase properties, but managing them from Canada seems to be a challenge. 

I see from your profile you are trying to pick up some properties by the Olympics but I think properties in Tokyo are already quite overpriced.

Are you looking outside of Tokyo? Or looking at fix-and-flip / BRRR?

Sorry, I forgot to mention that my last reply was related to Alberta.