All Forum Posts by: Salvatore Giancola

Was just wondering if there was anyone on BP that was affected by the icona condo project cancellation. Bought the condo preconstruction as an investment, i thought either assign it or hold to rent. This was before I started educating myself on buy and hold, and looking outside of my own backyard for good deals. I didn't understand or know the term cashflow 2 years ago when I bought the condo. Anyway it's about 2 years after I purchased it and a few months ago I put the final installment on the 20% down payment. They now announced they cancelled the project and returned the deposit. Not even the courtesy of giving us any interest accumulated. This is actually the 2nd time a preconstruction condo I have invested in has fallen through. So my money has just been sitting in builders trusts for the past 6 years (2 for icona and the 4 years before that in another condo that was cancelled) earning me 0%. Very frustrating. I'm sure my preconstruction investing days are over unless Ontario starts seeing some changes to protect the buyers. Cosmos condo is another project in Vaughan that was cancelled, deposit returned to buyers, and now builder is putting up a condo literally across the street for approx an extra $100k more on similar sized units.

This is why I love BP. 2 great answers in half an hour. Thank you both. I actually didn't know there was an alternate to CMHC. Can't believe in all my talks with banks and mortgage brokers it's never come up. I will definitely start looking at my options and will reach out when it comes time for us to make our move. 

Hey BP, This past year I bought 2 rental properties. I used conventional financing through banks. I put 20% down on these I purchased the fort one under my company name, which is a sole proprietorship. The bank gave me issues with the 2nd home, so I ended up putting it under my name. So I own these 2 investment properties, however I still live with my family, recently moved into my fiancée's parents house. My fiancée and I are looking to buy our first place maybe next year, I was hoping that I would be able to put 5 - 10% down and still get first time home buyer (cmhc site specifies primary residence, not investment properties). I was told by a mortgage broker that because I own 2 homes CMHC won't insure my mortgage meaning I must put at least 20% down. Any ideas if this is correct or how I can get around this? Like if I change it from sole proprietorship to corporation, or if I sell one house. Any advise would be greatly appreciated. Thank you

Hey Anastasia, 

I agree, I've been on bigger pockets daily and need more Canadian specific discussions. I live in the GTA but real estate prices have reached a point where its very difficult to find a cashflowing property. I have looked into kitchener/Waterloo. Student rentals are a very strong market. However after a lot of research and crunching the numbers I took the leap into real estate investing in the Windsor market. The affordable single family homes provide a lot of opportunity. The cashflow has also been great. You have the option of student rentals, retired couples, and growing number of young families. I see a lot of potential in the area. 

We are starting to discuss moving out there and taking over the property management ourselves. 

I'm still new to investing so always looking for more to learn. 

Hey all, Greatly appreciate everyone input here. Just some responses and update.

I usually do a 1 year contract. The tenants wanted a 5 year contract. We agreed on a 3 year, and I was able to get them to agree on a higher rent/mnth. I can already see why it's better to stick with the 1 year lease with slight increase in rent every year.

I took last month's rent not a security deposit. Landlords in Ontario can't take security deposit.

So the first of the month came and past but no rent was paid. I reached out and sent them a courtesy letter advising rent is now late and put on a late fee. Told them if the total isn't paid I will have to issue a pay or vacate form to start the eviction process. They responded with they have been gone on a 10 day vacation so couldn't cover the rent. But will pay this Friday when they next get paid and will pay the late fee.

I tried to be understanding but said if they knew they were taking vacation and rent would be late. They could have advised me ahead of time.

I'm hoping this was a one off and they will pay rent next week and not be late anymore, however I'm getting only bad signs from these tenants.

I believe the one girl left and only the mom with 3 children are in the house now. Haven't heard back from the tenant that potentially left to confirm.

Wish me luck, I'm learning every day and hoping get better everyday as well.

Hey BP members,

I am looking for some advice on this matter. I purchased a newly renovated single family home and started screening tenants immediately.   2 friends came together and filled out an application together. they were looking to move in together and said they were old family friends. first applicant (lets call her lisa) is a mother of 3 (all under age 10) and the other (lets call her linda) is a single female. together they had a strong application. they were selected, signed a 3 year contract and agreed on a move in date (they needed to give their currently landlord 20 days notice to move out). 

About 3 weeks after moving in, Linda emails me stating she would like me to remove her name from the contract. Lisa and Linda got into an argument and she had decided to leave. Lisa also emailed me a few days later saying Linda is moving out, but she (lisa) wants to stay with her 3 kids and can pay the rent on her own.

I have no intention to remove Linda from the contract. I emailed them both about a week later saying that Linda has every right to move out of the property, however that they are both equally responsible to pay the rent for the duration of the contract.

from the pay stubs lisa provided i don't see how she could afford rent on her own if linda does move out, even though she says she can afford it (maybe from baby bonus or help from family). even assuming she can make the payments on her own, i'm not sure on best course of action.

since they applied together and one tenant leaves, Lisa may not meet minimum requirements to be approved on her own. should/can I make her re-apply on her own? can I make her move without an eviction if she doesn't meet minimum requirements. if she re-applies and is approved, do i draw up a new contract with only her, removing the other tenant from the contract? I don't think i can evict as long as she pays rent in time next month.

any insights or advice on the matter would be greatly appreciated.

Thank you,

Salvatore Giancola

 BRR HOMES

I'm in Vaughan, looking to buy a duplex sometime next year to start house hacking.