All Forum Posts by: Christopher H.

Kelowna cap rates are typically in the 6% range for on-market multifamily acquisitions. A few factors of course such as area, target market, etc.   Were you looking in a specific area?    

@Mike Lambert

What areas of DR are you seeing good opportunities in right now?  Or do you stick to a specific area?  

Sorry that comment on the economy was 

@Mike Lambert 

@Nathan Asher Robson

I want to share a few things on this topic. I'm Canadian and I have been travelling to DR for 14 years.  That has included several trips from all-inclusive resorts to renting.  I have been up and down both the north and south coast, explored Puerto Plata and Santo Domingo.  I have been down through La Romana and was fortunate enough to visit beautiful spots such as Isla Saona and Playa Caleton. I have travelled with friends, family, and alone.   A majority of my time has been spent on the North Coast in the Cabarete/Sosua areas as that is my preference and just for the record I have never been out to Punta Cana though I have been close to.  

Please take everything you hear from the media and certin individuals with a grain of salt.  The DR is not like many individuals would take the time to describe and I mean that in more then one way.  

Bad **** goes on in the DR.  Terrible things happen.  Guess what?  The United states is full of it.. more corruption, more violence, a lot more things to look out for as far as physical safety and busines/financial safety.  In Canada it is the same way.

Some areas are safer then others, just like the US.  Some people are more dangerous then others, just like the US.  You say the wrong thing to the wrong dude or be in the wrong place at the wrong time you could be in for it, just like the US.  

Here is the real difference.. The game is played DIFFERENTLY down there.  Its not about more or less safe etc etc bs.  People who talk **** about it are really just out of their comfort zone, and I dont blame them for  feeling that way, though you would think they would be a bit more mindful of these things before commenting.  

Consider what @George Munoz said about their economy.  It is one of the strongest economies in the carribean.  They have their challenges also.  Real estate is much different down there.  Homes will sit on the market much longer.  The rules and laws of real estate are different.  The opportunities show themselves in alternative ways then what you might find in the US or Canada.  A lot of the fundamentals of investing (and life) are similar, but DR has its nuances.

I would suggest you do not buy there until you spend some time there.  Go and talk to the people.  They are fantastic people honestly.  

I have been down there and looked at Real Estate and investment opportunities.  Almost bought a night club in a popular resort town, but the deal fell through.  Which I am grateful for because I wasnt ready to handle business in the DR at that time.  

For me personally, if the right opportunity popped up in the DR I would seriously consider it, but only because of the amount of time and familiarity I have with the place.  

Hope that helps.  

@Charlie Moore

A ton of good books listed so far.  I complete 1 book about every ten days on average.  So I wanted to add a few more that I found valuable.  Not real estate related directly, but certainly very pertinent

1) Principles - Dalio

2) Lead The Field - Nightingale ( Thanks @Sterling White )

3) The Alchemist - Coehlo

Also, one last thing I will add that has benefited me exponentially.  

Audiobooks.  

Without them I would not be able to consume even a tenth of the information I do.  

Santi 

@Mitchell Litam

There is differences between the vinyl plank and laminate flooring ! They both have their pros and cons. The nice thing is it's pretty easy to find good I formation on the topic with a quick Google :)

@Mitchell Litam

I would suggest considering vinyl plank. There is a couple reasons you might find it beneficial

1) alot of vinyl plank has a layer of cork or similar material on the bottom of it. This is excellent as an additional layer of sound reduction! You will also hear less 'clicking' when people walk.

2) in most scenarios it can stop water from seeping through it much better then laminate will. In general it's pretty durable. Not only that but it is comparably simple to replace a plank if it gets damaged compared to other types.

3) it looks great! Good way to add value to a rental that is cost effective

4) very affordable compared to alternatives also

Hope that helps

Santi

@Brandon Roof

I second this.

Is that rent accurate? Is it currently rented at that?

I noticed you used 5% apr.. can you get that down?

Is there another angle to this deal other then straight cash flow? Are you expecting an above average growth in equity in the next 12 months? Is there opportunity to build equity through value add Reno's?

9% cash on cash is ok(that's a soft ok) as a stand alone number, but the risk vs return here seems way off balance from just those numbers.

Just my input hope it helps 😊

Santi

@Jesse Graham

There is still deals to be had all over the Okanagan. I just snagged a nice SFH in Kelowna in April with 2 suites 1 x 3b/2ba and 1x 3b/1ba. Its solid cash flow, in great shape, and I got it for what I believe to be a favorable price.

With that said I had to look through a lot of properties before I found one that was a good investment and good cash flow.  

Here a few tidbits of my opinion based on my experience and research.  I'd suggest you form your own opinions of course :)  

1) Kelowna: Has a strong rental market, but It may be tough to find strong cash flow on a property with only one suite.  

2) Kelowna: The summer Short term rental combined with Off season student rental combination is making folks big cash flow right now, but it is growing more competitive.  

3) BC: I second the comment made by @Brianne H.

4) Vernon:  If you spend the time to look you can find deals here  

5) Have good Math.  :) 

6) Buy something you are prepared to hold.  Some people think we are late in the market cycle.  I'm not going to spark the debate in your thread, but it does make sense to ask yourself "am I ok holding this for 5-7 years if I need too? whats that look like financially?"

7) Real Estate is very seasonal in the Okanagan like @Theresa Harris mentioned.  You can see it in the Data.   If you can find a decent property in Dec or Jan that is probably optimal.  

Good luck with your ventures, mate. If you are ever in the area and want to grab a beverage and discuss REI feel free to reach out.

A majority of the mobile home parks out here in the Okanagan do not allow rentals.  I'm not sure about Manitoba though, it could be different.  That would certainly be the first thing I would look at.  I've seen a few out here that would have really strong cash flow if it was permitted.  

The other thing to keep in mind is you have to consider how liquid you want to be...  it may take some extra time to sell the property.  Also, consider the lower appreciation vs the cost of sale when you do want to dump it.  

In the end its like most other real estate investments.. Does the math work?  does it fit into your long term strategy?  If the answer to both of those is yes then it's probably worth a deeper look :)