All Forum Posts by: Simon K.

Hello, I was wondering if I would be able to qualify for a higher mortgage amount if I had a guarantor (father) with me. Does that make a difference? Will I be approved for loans I would otherwise be denied?

Hello,

I'm starting off in real estate investing - soon to make my first purchase. I want to own many properties, but at what point will banks stop giving me loans? How do I avoid this?

I was speaking with an investor and he said you can start a company and invest as the company - you would act as the guarantor and the property would not show up on your personal liabilities. Is this true? Can someone speak on this?

Does the BRRRR strategy mostly apply to distressed/gutted homes? What if a home is just outdated and needs modernizing? Will your ARV ever break even with the Buy + Rehab costs for an outdated home? For example, a lot of what is being touted by the BRRRR strategy is applied to distressed homes that are bought for, say, $50,000. You add in rehab costs of $30,000. The ARV becomes, say, $120,000 and so you recoup the 80,000 when you refi. Now what if you bought a home that was simply outdated and needed some work and a few repairs here and there. Let's say your purchase the property for $400,000, put in $50,000 of rehabbing. Is it realistic for the ARV to become $562,500 so you can recoupe your costs when you refi? Or is that simply not realistic and does not happen often? As someone who is looking to purchase their first investment property, I would feel more comfortable with an outdated home that simply needs some modernizing. A fully distressed/gutted home seems very daunting for a beginner. What are your thoughts?

I have been looking into the idea of buying a SFH that needs a little bit of work and actually taking it a step further by converting it into a duplex. It seemed like an obvious idea to me - I would renovate the home, and then have an upper and lower unit - increasing my cash flow. I would likely live in one of the units for at least a year. Then leave, rent out the other unit and repeat in a new location (I may jump cities for a new fulltime job soon). However, I started to look into this more and found that by converting a SFH to a duplex, you may not see a direct increase in value to the home. Because now, rather than being appraised as a residential property, it becomes more of an investment property and is evaluated as such. So maybe I wouldn't see a direct increase in appraisal value - is this true? I wanted the benefits of rehabbing and refinancing - so I could pay back my hard lender (my immediate family) and break even or possible even profit when I get a high appraisal. What are your thoughts?

@Evan Polaski

Yes, I have a full time job with no dependants (in my mid 20s). Ultimately my goal is to invest in propertie(s) passively, pay off the mortgages with the cash flow, and in a couple decades, own these properties fully and receive income that I can live off of. Ideally retiring from my current full time job in a decade or so (or earlier if my REIs are a success) and either turn REI into my full time career or simply retire outright and receive income while I pursue other endeavors.

If you had $300k CAD to begin investing in real estate, what would you do? Ontario, Canada. SFHs? MFHs?