All Forum Posts by: Santesh Jaggernath

Congrats Marshall, what a success. Kudos to you!

Quote from @Scott Innocente:

@Santesh Jaggernath Hi Santesh, investor focused agent in Windsor here.  Feel free to reach out if you need help navigating the market!

Best,

Hi Scott, thanks for reaching out. I just replied to a post looking for a contact in Windsor too. I will reach out privately you discuss. Chat soon.

Quote from @Sam Balogun:

Quote from @Santesh Jaggernath:

All,

My wife and I currently reside in Etobicoke and have generated substantial equity in our primary home.
For the past two years we have house hacked our primary home by renting the basement. Now we are ready to make the next move and purchase our second property to generate more cashflow and have it appreciate.

To do this, we refinanced our primary mortgage and pulled out equity ($300k) to cover the down payment and renovation costs. Prior to refinancing I did speak with a couple of real estate agents to confirm if our target purchase price was achievable ($500k-600k), both said we should be able to make it work. Then we spoke with a mortgage broker and confirmed that we should be okay for an approval within that range and possibly more due to our high employment income. Ideally, we would purchase a single family home for $500-600K max, put down 20-25% down and the rest of the funds will cover renovations to convert to a duplex and cover holding costs.

Now finding this property seems to be like finding a needle in a hay stack. Properties are going almost $200K over asking and when I run the numbers at these prices, I wouldn't be able to cash flow or have enough cash for the renovations, holding costs, etc.

We have been hunting around Hamilton, Brantford and London so far but to no avail. I am trying to keep my composure and not over pay for these properties but its getting tough. Now I am sitting with a load of cash and I am worried we took out the funds to not even be able to use it especially with inflation staring at my bank account, ha. I am open to investing in Windsor and St. Catherines. Also open to Kitchener and Barrie but my price point is probably too low.

Anyways, sorry for the long winded post but I thought I would give BP forums a try to get some tips, direction, connections, encouragement, anything helpful really.

Look forward to hearing your responses and thanks for reading all!

Hey Santesh, congrats on the refinance. My wife and I are in the same boat as you are. We live in Windsor and were shocked after refinancing with what the market had become even in Windsor. There are duplexes still selling around 600-700k in Windsor-Essex region though they most are older buildings needing good renovations. You can link up with an investment focused realtor in the areas you are looking at and have them send you options that come up. You can also join private sale groups on Facebook where lots of wholesalers post properties in Ontario, Alberta and the likes. For us, we likely will be going with a private off-market sale to house hack all over again having updated and refinanced our currrent 1930s home in Windsor. Good luck! I can recommend an REI team in Windsor to you if you need me to.

Sam, thanks a bunch for your reply. I like Windsor and saw some duplexes for sale. Listed within budget but probably need to add 150-200k realistically which wouldn't make sense for me to buy at that price point considering the rent.

Unfortunately, my friend who is a realtor has limited access to comparables in Windsor which is not ideal. I'm still open to investing in Windsor but need a good investor focused agent that knows the market and to help me navigate. Can you recommend me a REI team in Windsor?

Also good luck to you and your wife on your next purchase.

Quote from @Jordan Perry:

@Santesh Jaggernath

Hey Santesh! I definitely hear your struggles. Your are not alone in this issue. The market is crazy! 

This is what initially led me to invest in Atlantic Canada and where I continue to find cash flowing properties today. I second what @Roy Cleeves and @Zorya Belanger said. If you cant find anything around home, there is nothing wrong with investing elsewhere, and in a lot of situations, it is a much better option! Especially if you are looking for cashflow. Ontario is a hard market to make the numbers work. 

As a mortgage professional/ real estate investor in Atlantic Canada, who lives in Ontario, most of my clients and contacts are people who are investing from a distance. its something that is seldom heard or seen, but those who do it well can be very successful. Let me know if there is any way that I can help!

Hi Jordan, appreciate your response. I'll reach out to get some feedback on how to successfully manage at a distance. 

I'm interested in the Atlantic provinces just not sure where to look exactly because I'm not familiar with the areas. I like to do my due diligence and really understand the market before getting involved so you seem like a good person to connect with. Hope you don't mind.

Quote from @Eagle Yeh:

Hi @Santesh Jaggernath, I am in the exact same boat with you and everyone's been very helpful so far in recommending various markets in Canada. I haven't bought my first property yet but if you want we can connect so we don't feel alone in this market XD

Hi Eagle, glad to know I'm not alone. Your right everyone has been so helpful here. I'm okay to connet. Have you decided on a province(s) to invest in?

Quote from @Marshall Magnus:

Hi Santesh,

Have you considered buying the second house, not as a rental property but as a primary residence? You could then move into the new house and rent out the main floor of your original house. This would increase your cashflow and perhaps you could repeat the process in your new house, renting out the basement that is. Buying the new house as a primary residence would mean that the house was CMHC insured and that you would only need to put down 5%. If you were set on the duplex conversion then you could still work toward that with the new property that you would now occupy. 

Best of luck!

@Marshall Magnus, this is a great idea. We thought about this and still do think about it. Unfortunately, we are tied to GTA as we have two little ones with childcare and help from the in laws less than 5 minutes away. Purchasing a home in GTA would cost an arm and a leg, couple that with the refinanced higher mortgage, this would be too much debt that I would be comfortable with. However, the goal would be too eventually change this primary residence to 100% rental in the future as you mentioned.

Quote from @Zorya Belanger:

I live in Edmonton and have been investing here for over 8 years, if you need some tips/contacts to get you started, you can reach out. 

Thanks @Zorya Belanger. I will reach out. Are you investing in any other areas in AB?

Quote from @Theresa Harris:

Have you thought about investing out of province?  You can easily buy a nice home for a fraction of that price in other cities and have a PM manage it for you.   Roy suggested NS, southern AB also works. I bought a newer house (~15 years old) for under $300K last summer.

Hi Theresa, I have never thought about Calgary although I have heard people looking to invest there recently. Is there any concerns considered the economy is heavily tied with oil and gas? Did you invest in Calgary or Edmonton or another city? Lastly, is there any tips or people I can connect with to get me pointed in the right direction? Thanks so much for your reply.

Quote from @Roy Cleeves:

Congratulations on getting set up for your next investment. 

Would you consider another province such as Nova Scotia?

There you could find something that will be in your price range. 

Hi Roy, thanks for your reply. I never thought about out of province investing. I generally kept it to areas I am familiar with. However I open to this. Do you currently invest there? Do you have any suggestions or contacts to help? I'm open to connect. Thanks again.

All,

My wife and I currently reside in Etobicoke and have generated substantial equity in our primary home.
For the past two years we have house hacked our primary home by renting the basement. Now we are ready to make the next move and purchase our second property to generate more cashflow and have it appreciate.

To do this, we refinanced our primary mortgage and pulled out equity ($300k) to cover the down payment and renovation costs. Prior to refinancing I did speak with a couple of real estate agents to confirm if our target purchase price was achievable ($500k-600k), both said we should be able to make it work. Then we spoke with a mortgage broker and confirmed that we should be okay for an approval within that range and possibly more due to our high employment income. Ideally, we would purchase a single family home for $500-600K max, put down 20-25% down and the rest of the funds will cover renovations to convert to a duplex and cover holding costs.

Now finding this property seems to be like finding a needle in a hay stack. Properties are going almost $200K over asking and when I run the numbers at these prices, I wouldn't be able to cash flow or have enough cash for the renovations, holding costs, etc.

We have been hunting around Hamilton, Brantford and London so far but to no avail. I am trying to keep my composure and not over pay for these properties but its getting tough. Now I am sitting with a load of cash and I am worried we took out the funds to not even be able to use it especially with inflation staring at my bank account, ha. I am open to investing in Windsor and St. Catherines. Also open to Kitchener and Barrie but my price point is probably too low.

Anyways, sorry for the long winded post but I thought I would give BP forums a try to get some tips, direction, connections, encouragement, anything helpful really.

Look forward to hearing your responses and thanks for reading all!