All Forum Posts by: Souleymane Alioune Haydara

Hey Sandra, sorry to hear about that situation. I know that in my city, you have to give a 24h notice to the tenants by law, if not, the tenants can sue the landlord. It might be a good idea to look at the landlord/tenant laws in your city to see if what they are doing is legal. Most of the time though, it does not have to go there, a simple call to the agent, your landlord or realty company calmly explaining the situation can solve the problem. Communication is always a good way to deal with a stressful situation. I wish you guys the best going forward.

Thanks,

Souleymane H.

Hi Kevin,

I am a real estate investor in the Gatineau area, currently getting my realtor license. Your question is about how to manage the excitement of a new deal vs the fear of possibly having bad tenants and how to deal with those aspects with logic and emotional neutrality.

You mentioned learning that it was the worst neighbourhood in the city and many people were telling you that the tenant quality would be bad. It is true that every city has bad neighbourhoods and good ones. The first questions I would ask are: Are the people that gave you advice investing in that area, or know personally someone that did? If yes than do they have tangible evidence of what they are saying? People that are not investors tend to be scared and give bad/emotional advices. If they are investors, have invested in that particular neighbourhood before, then maybe taking their advice would be wise because they have more experience than you. You could also go in that neighbourhood on your free time, drive around and get a feel for it, you could even knock on doors Grant Cardone style to speak to landlords about their experience.

Also, a good thorough screening process is a good step to take towards eliminating bad tenants (Credit score, job, references etc.). If you are investing in RE, you will at some point have to deal with difficult tenants even in the best neighbourhoods! If that is not for you then a property management company that would take care of it for you might be a good investment for peace of mind.

Now for the "Getting excited" part of your question, A good way to handle it would be running conservative numbers and stress testing your deals, by that I mean what if the interest rates go up on your mortgage from 3.97% to say 6% are you going to cashflow, break even or potentially lose money? What if the property is vacant or you have a sudden CAPEX to take care of? Those tests depend on your level of comfort and your goals. It could also be wise to show your numbers to another experienced investor who could judge your deal from an outsider's perspective. Also, not letting the hunger from a two-month search guide your decision could be a wise thing to keep in mind, good deals will always be there, I find some in Gatineau every week or so.

I hope that helped you, do not hesitate to contact me if you have any more questions, or if you want to have a coffee! I love talking RE!

Cheers!

Souleymane H.