All Forum Posts by: Sean Illman

Looking to install vinyl planks flooring in a basement apartment. Im between armstrong and allure. W hat is everyones experience with either of these products?

Do you prefer the stick type or click. Pros and cons . Will be laid on a wood subfloor and may have some slight slopes on the floor.  

Im about to close on my first multi unit at the end of next month. I  will be doing my own Property management  at a rate of 7%. What is the best way to do this? Create company in my name ? Just claim the income on personal income tax? I plan on investing in more properties in the near future which I hope to do the property management  as well .  Just looking for some tips on what can be down now and  down the road . 

Thanks 

I understand roy. But you then have to wait to refinance to be able to get that money back to use on another property. unless you are able to buy well below market value and after a year or so you  can refinance and get that downpayment back. When purchasing your first property do you keep in mind where the  downpayment for the next building will come ? Would not like to have all equity tied up in just one building if another good deal came along. 

Im fairly new to all this  so I could be  totally missing the point  but I  find when I people  work out the deal analysis no where does it show the repayment of their downpayment . Yes it could be cash of their own but don't you want to have least amount of your own money  not tied into the property ? 

 I know if they bought below market value can get out in re financing. Say you bought at market value do you calculate in your expenses  the re payment to your money you borrowed? If its hard money of course you must factor in. but  how does it factor into  whether  the property is worth buying?  after how many  years do you want your downpayment back in your pocket?  Say your roi per year is 10% but after u pay back yourself or hard money  for the downpayment your down to 1%  but your able to payback the downpayment in 5 years. What is proper practice?

reduction of purchase price by $30,000 ? 

Hey roy 

current owner went to city  just 1year ago and got it increased to 5 from 3. talked to someone at city sounds like they will not allow 7 due to the high residential area . Maybe over time but can not see them overturning what they said just one year ago.  owner  made it 7 units before got  approval :(.   Wish i did not work a 7:30 - 6pm  job with not much flexibility to be able to meet for coffee during week. Need someone to help me get started  in real estate investing  .   TTYL 

Looking for advice on this property 

7 unit which needs to be converted back to 5 as city only allows it to be zoned 5 unit. 4 units and a small commercial space (hair salon)

currently set up as  1- 3 bedroom  1- hair salon   5 bach

would convert to 1- 3bedroom  1 hair salon   1 -bach      1- 2 bedroom  and 1-1 bedroom(possibly 2 bedroom) 

Asking price $199,000

current Rental income 7 units 

1 3bedroom $1000

1hair salon $600

 5 bach  $500 

rental $4100

after  convert to 5 units 

1- 3 bedroom $1200 

1 hair salon $ 600

1 bach 500

1- 2 bedroom  $850

1- 1bedroom $700

rental income $3850    less money but has to be done to abide by city 

total $46,200

expenses based   from the 7 unit  last year   could be little  lower with less units  

power $6700

property tax $7400

water 1950 

garbage $1000

repairs $ 2540 

insurance $3500

vacancy rate $385 (10%) 

total   $27710

mortgage  on $150,000  - $850  -$10,200

total  $37910

income 46,200 

 net income  +8,209 before repayment of $50,000 downpayment back to my line of credit    $833  based on repaying back in 6 years ( is this normal practice?)  would like to payback before have enough equity to refinance   $833  -  $9996   

which then would bring net income to  $ -1706 

How can I make this property work? 

also that is not including $15000 that would need to be put into building to make the units right. 

any advice is greatly appreciated 

any advice would be great.  The  Purchase price is $209000. building is in a residential area with maybe one or 2 properties able to rent. On bus route  close to schools and malls . Great location