All Forum Posts by: Shaheed Crier

I don't think you would be able to find cash flowing properties easily in Edmonton or Calgary. If you wait a few more months you will see more declines in pricing in my opinion. Also when I do my calculations on units in Edmonton they tend to not cash flow well (or at all) after taking out all expenses and management. If you are looking to do cash investing I would recommend looking at Winnipeg. The price per sq is cheaper and the rent per sq is higher in that regards. From looking online and checking rents in Winnipeg I'm seeing some 1% and up units. That being said you have to do your due diligence and research the area. I would look into the university area.

The apartments that sell for 120,000 basically rent for 750-900. And the demand for those are falling. I look at places in that range but the condo fees literally kill the profit that you can make on rentals.

I think your mindset is in the right direction. Seeking education before jumping into the game. That being said RDPD is over priced and even if you complete their courses you still have to do the most important thing and that is Take Action. Just listen to BP podcasts, read books recommended by successful investors and play around with the calculators. BP will help you generate great ideas for starting out. In my area I was offered a RDPD course and it was $5000. That money could be better used as a down payment after doing research, networking with local investors and bouncing your deals in BP posts.

Thanks you for all your responses. I gathered a lot of information from you guys to better analyze this property. I greatly appreciate your input. Thank you.

Thank you John Hickey. Your calculations was in line with what was stated by the seller. I really like how you broke it down. Now it's time to do more homework. Thanks again.

Thank you Michael Beeman your explanation for working out the valuation was very helpful. I was able to run and understand the numbers more, but I still have lots more homework to do. Here are the numbers they have that I did not put up in the original post. Schedule Income $89,400 Laundry $1,620 Vacancy (4%) -$3,576 Total income $87,444 Expense year: Taxes (2016) $8104 Insurance (proforma) $3,150 Utilities (proforma) $11,700 Repairs/maintenance (actual) $4,538 Management 4% $3,498 Resident manager $4,800 Total expense $35,790 Expense per unit $3,977 Net Income $51,654 CAP Rate 5.22%

I'm looking at a 9 unit building. All one bedroom units Monthly rent is $7450 annually $89,400 Building age 46 +/- 1 Cap rate 5.22% Asking price $989,505 How do you use the rental price to get to a building value? Thanks for your help in advance.

Ask them to get a preauthorized payment form from their bank if they can do that. That way on the 1st of the month (or whatever day you have for them) you can just pull it out of their account.

HI Jieh, I'm not to sure where you can go to learn about international income requirements. I like the idea of using funds from the US to get started. Using the BURRR would be a good was to bring back money to pay off your US debt (You would not be selling a property but getting a loan, you would have to talk to a tax specialist an see if you would have to pay taxes on a loan from the Philippines) I think the banks in Philippines would give you a loan secured by the property you just have to find the right bank to do it for you. Then you can pay off your debt and have the funds freed up to use for another time or as emergency money. 

I would try to do (2) 2bed 1bath on each level. That way you can also cater to other renters who are not students. It will give you more options.