All Forum Posts by: Taylor McMullen

I am in the Okanagan which is good but the prices are climbing too fast and to cash flow is becoming harder. There's just much the market will be able to accept as far as rental cost hence making harder to find cash flow opportunities

Edison

Hey Edison,

Thanks for the response! Interesting. I can imagine most cities outside of Vancouver are experiencing a taste of the craziness.

I will be in Kelowna next month. I will have to see how it compares to Victoria and Nanaimo.

Kindly,

Taylor

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Hi team,

What part of Canada do you invest in? (province,cities) What are your vacancy rates? Average rents for the area? Average price point?

- I am in Victoria, British Columbia, Saanich East (exploring Nanaimo, North End)

- Rental vacancy <1% - Highly competitive.

- Average rents for a 5 bedroom 3 bath house with suite - $2800-$3200

- Multi-family duplex/Tri/Quad between $1500-$1800 per unit.

- Average cost for a home present day $700,000.00 (compared to a roughly $560,000.00 average in January 2015)

I am very interested in hearing what you guys have to say!

Cheers!

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Originally posted by @Kris Mcfarlane:

@Taylor McMullen

Sounds like value add is where you can turn a good buck, I was just reading what you house rents for and purchase price, you can get the same results here in Abby for 575 000 in a C+ to B- neighbourhood. You made a killing on that house though, 170 k in two years! Was that all in appreciation or did you do a value add, as it has a suite in it I'm assuming in just appreciation?

My favourite type of house to buy is the old bilevel entry BC box, 3/2 up and a great room and 1 bath down. I turn it into a 3/2 up and a 2/1 down; with keeping the garage open, and a window in it it gives me that option of doing a 3/1 down. Adding a bedroom and living space in half of the garage, opening up the man door to create more of a welcoming opening into a new space as well.

I was very lucky with my purchase. The home went up in value purely through market appreciation. The market was just starting to rise when I purchased the home. It completely exploded from there.

Vancouver's market is dripping over to Victoria. I believe the average home price in Vancouver is around the million dollar mark now. Victoria went from $575 last year to $700 present day.

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Originally posted by @Kris Mcfarlane:

@Taylor McMullen

I've had my rentals been between 500 - 700 k purchase price here on the mainland but the way I allow them to cash flow is to do the value add of putting in a suite and renting out the house; I include yard maintenance and all utilities on the properties. Was the home you purchased suitable and how do you find the market in Vic? I'm noticing a bit of a lull, a very minimal one here in Abbotsford, and by lull I mean houses aren't selling in a day - more around the month mark; opposed to Vancouver where as far as I know it is still an extremely hot market.

Hey Kris,

I am definitely noticing a bit of a lull as well. It usually does get a little quieter just before summer I find. Families getting ready for holidays. If a home is on the market for longer than a week, I am wondering what the problem is.

With that being said, homes are still going well over asking price in hot areas. We had one the other day listed at $699,000 go for $1,019,900.

The house I purchased already had a suite in place. I am starting to look to Nanaimo for my next purchase.

I appreciate you sharing what has been working for you. I am starting to explore the idea of value adding, especially in market places like Vancouver & Victoria.

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Hello everyone!

I appreciate your responses to my question! I am beginning to search in markets outside of ours here in Victoria. The trouble right now is, Victoria and Vancouver are in very short supply of inventory. This is driving prices up like crazy at the moment. i.e Home listed at $699,000 last week sold of $1,019,900. INSANE.

I was lucky enough to purchase a home in a great location. I can rent the house for about $3000 per month. However, I am not cash flowing at the moment, but my property value is around the $800,000 mark now (purchased for $630,000 Oct. 2015). I am considering either borrowing against the equity to purchase a second property, or attempting to aggressively pay down the mortgage on this house, become debt free, and allow that process to compound my results. I realize that is a very ambitious strategy, but I feel could be a viable solution to investing in an expensive market place.

Thanks again for your response. That was my first post. Loving the support of the community on here.

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Hello everyone,

I am wondering if anyone has any experience investing in expensive market places? The 20% down payment can be a real challenge when the average property is $650k+

It can be very tricky, especially for younger people, to obtain the 20% down payment. That is, if you are aiming for a positive cash flow.

If you are in the market currently, you could use a combination of cash savings and equity loans...

What are your thoughts?

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All Forum Posts by: Taylor McMullen

Taylor McMullen has started 2 posts and replied 7 times.

Post: Where do you personally invest in Canada?

Post: Where do you personally invest in Canada?

Post: Where do you personally invest in Canada?

Post: Purchasing Rental Properties in an Expensive Marketplace.

Post: Purchasing Rental Properties in an Expensive Marketplace.

Post: Purchasing Rental Properties in an Expensive Marketplace.

Post: Purchasing Rental Properties in an Expensive Marketplace.