All Forum Posts by: Siobhan D.

Are they doing this from Ottawa or the east coast? Would you mind sharing if it’s cashflowing/how much? 

 Thanks!

 Interesting. Any groups/resources for Ontario/distance investors looking at the east coast? 

 I can’t tell if you’re joking re: 45k/1500 but if you’re not please enlighten us to that market! 

Before looking at the US why not just drive an hour (or less) out of the GTA? 

Hi All,

Wondering if in general investors are setting aside a % of their rental income for income tax. I realize this will differ greatly depending on personal income/location etc. but curious (especially in Ontario, Canada) if with write offs/depreciation you owe money at the end of the year for taxes. For reference, our family would be in a mid-to low high tax bracket in Ontario and are buying in an inexpensive market (compared to GTA) with high cash flow. 

Any help or direction to great resources appreciated!

Thanks! :)

Hi All,

Sort of a follow up question to this original post. If I could find another way to finance the downpayments on subsequent properties, is there any benefit to holding on to our first property with the above numbers? The rents could possibly stretch another $200/month for cash flow of $328. I've seen some people say $150 cash flow per door is decent but to me it seems too low. I just don't want to regret selling this first property as we did so much to make it what it is today!

Thanks :) 

Hi @Roy N. I'm confused because I ran all this by my mortgage broker and he didn't say anything about not being able to have two high ratios. Just to be clear I'm thinking of selling our current house to buy an owner occupied SFH with basement apartment (5%) and a NOO 4plex with 20% (hopefully). You're saying can't be done?

Thank you so much for the reply @Brie Schmidt :) I'm in Canada so I think the downpayment rules are slightly different. 5% is definitely ok for owner occupied but I'm reading that 20% may only be available for up to 4 units on a strong application. We have excellent credit but not much as far as other net worth etc. so I will keep that in mind, thank you! 

Hi All,

My husband and I purchased our first home 20 months ago and through either brains or dumb luck it has turned out to be an excellent investiment. It was a foreclosure in a nice area that was listed as being in a neighbouring "less nice" city on the MLS (which I think is why it was not getting any attention). Anywho, it's a raised blungalow that we finshed to have a basement apartment, as well as completely rehabbing most of the house to the tune of $40,000+. We paid $290,000 for the house, got $10,000 added to the mortage for improvements and put 5% down. By next year we should have around $275,000 left on the mortgage and our real estate agent puts the value now around $400,000 (super low inventory in our area, again either brilliant or stupid lucky).

This gives us about $125,000 in equity (if we sell) which is where my question lies. I will post the stats at the bottom of this post (thank you SuperSteveHomes for the amazing calculator) but my thinking is to sell this house, as the cash flow is poor and we can use the equity to get better cash flow somewhere else. I am thinking we would use the equity to put 5% down on a slightly bigger family house for us (with a basement apartment), and then use the vast majority to put 20% down on a 4-plex in a less expensive town within an hour of us. We have already talked to our mortgage broker and we can carry both properties.

Does any of this sound impractical, or is there something I am missing that would be better strategy wise etc? Open to all suggestions/ideas as I'm still new to this. The goal at the moment is to have somewhere nice to live, while also having some passive income streams to compliment our work salaries/pensions in the future. Also if anyone has suggestions on how to grow from there in the future that would be appreciated (I'm thinking use future equity/savings to keep buying properties?)

Thank you, thank you, thank you!

Current House

Proposed 4-Plex