All Forum Posts by: Travis Hewlett

Hello BP,

I have a 1969 Bungalow with a basement suite downstairs. We are currently living upstairs and have tenants in the suite. The upstairs has original hardwood that I re-finished and oiled. The floor has been pretty quiet over the past few years but lately has started to squeak and is quite loud when you walk upstairs. We are looking to buy a new house hack and want to try and soundproof the floor as well as the ceiling in the suite before we move, to minimize sound and potential headaches with the future tenants. 

The basement suite's ceiling is spackle so it cannot easily be removed to add insulation or spray foam. There are sections of the ceiling that I could stuff insulation or soundproof materials along the joists, but i'm just wondering if anyone has any soundproofing suggestions to keep noise levels to a minimum between a main floor and a basement suite, as well as stop hardwood floors from squeaking? Can companies come in and drill small holes to spray insulation? Is spray foam insulation a good idea if in the future you may have to pull wires etc? Any suggestions are appreciated. Thanks and have a great day,

Travis

Hey @Dathan Nunn, welcome to BP! 

I would be very leary of buying anything near towns with a large part of their economy in the coal business. The Canadian government is really pushing hard to move to clean energy and is really making it hard for players like Transalta to keep their coal plants in business. I believe Transalta saw the writing on the wall and is converting the majority of their coal burning power plants to natural gas by 2025. Renewable Energy manufacturing has come down substantially and solar and wind are both cheaper than coal and gas /watt. 

That's just my two cents, but I would really look at the town closely and factor in how much it relies on the coal business. You may be better off investing in Fernie which seems to be attracting more and more people. Take a look Oliver or Osoyoos as well. I believe they built a prison and are short on rentals for the staff. A friend purchased multi-family units in both towns and have had lots of success filling them. Good luck!

Hey Kevin Mouck,

Welcome to Biggerpockets! I'm in Calgary and am always up for a chat about real estate! Let's get together for a coffee or beer. Shoot me a message and hopefully we can get together this week. Have a great day,

Travis

Hello BP,

I am looking for a quick checklist or list of good questions to ask when I cold call multi-family or mobile home park owners asking them if they'd be interested in selling. I have recently pulled all of the titles of the multi-family properties and mobile home parks within my town and am going to start calling all of the owners to ask if they have any interest in selling. I understand the first couple of questions are fairly obvious ie; Would you be interested in selling? How long have you owned the property? Current Vacancy rates? etc; but I was hoping to get some idea's and or somewhat of a script to follow so I don't miss anything and good questions to ask as we get deeper into the conversation. 

The end goal for these cold calls is to find a few potential properties to evaluate, purchase in a Joint Venture and BRRRR. My partner and I are heading to an investment summit in a month and a half, and would like to have a few potential properties to attract investors. We know the market very well would like to transition into the smaller multi-family game. Any help or suggestions would be appreciated. Thanks and happy investing!

Welcome to BP @Dario Ercolano! 

I agree with @Noel Desautels comments. I am currently investing in Alberta, focused on Calgary and Edmonton as well as smaller towns in the province. Cashflowing properties are hard to find in Calgary and Edmonton but they are still out there. I believe the Alberta market is a great place to invest right now because it was hit hard with the recession and has lots of upside. I would take your local knowledge from Edmonton and surrounding area's (Sherwood Park, Leduc, etc) and find a cashflowing property that has appreciation upside as the market improves. Good Luck!

Good Afternoon @Adeola Ade,

I agree with Roy's comments. I haven't dealt with RealFile CPA personally, but they were just recommended to me by a mentor. I would love to connect about properties you are looking to wholesale and let you know what we are looking for. Hopefully we can connect. Thanks and have a great day,

Travis Hewlett

@Neil Da Silva , @Brianne H. @Brandon P.

Hey guys, I live in Calgary and am in Business Development in the oil and gas industry. We have definitely seen the worst in oil and gas industry, there's a lot more optimism in the air and companies are moving on projects again. It was very rough through 2015 and 2016 but, fingers crossed, it seems the worst is behind us. From the speakers at the REIN, Keyspire, and meetup events i've been attending it seems like the consensus is that the real estate market has bottomed as well. There has been month over month growth over the past 5 months, still small, but trending the right way. It seems to be moving in a positive direction and there's definitely better cashflow deals and less rental incentives. I have a basement suite and was able to get my rents to a respectable level again from the 2015/2016 levels.  There is a lot of talk about vacancy rates in Calgary especially, but it is mostly commercial and office space vacancy. There were a ton of layoffs as well as a few large towers that have been in construction for years opening and flooding the market. 

We are also in negotiations right now on a duplex that's in foreclosure. There aren't a ton of deals out there, but they are starting to pop up more and more. I personally think the Alberta market is a great place to buy as much as possible right now, because we should have bottomed out. We're planning on getting into as many properties as we can over the next couple years and take advantage of the effects of the recession.  

I'm always up for a call, pm, or coffee if you want to chat further as well. 

@Diane G. the financial partner is not paying us anything along the way. We don't get paid anything until their initial investment has been paid back with cashflow and on the re-fi. They are passive investors who are happy to receive a stong ROI on their investment and don't have to deal with being a landlord, rehab, or finding deals. We are a young couple that don't have the capital to invest on our own, but have time and lots of ambition, so it's a win-win for both partners.

Thanks @Matt Geerts it was a little rocky but it sounds like we should be able to get it to the finish line. See the below analysis;

PP - 210k, DP - 42k, CC - $2500, Apprailsal - $500, Rehab - 15k, ARV - 250k

Rent UP - $1250, Rent Down - $850, Garage - $300 (blended for 6mth lease) = $28800 - $2500 (2 months for loss of upstairs reno)  = $26300/year

Expenses - VAC - $170, Util - $220, Ins - $200, Prop Tx - $150, Repair - $200, Tenant Gifts - $25 = $11580/year + Mortgage ($706.61/mth) $8480/year = 20020

CF              = $6280

PA (3%)     = $7500

PR              = $3520

AA                = $25000

Total            = $42300 

ROI = $42300/$60000 = 71%

Were hoping to have a $1250 upstairs rent for the new tenant and have them pay 60% of the utilities. When we renew the basement or turn over that tenant, we will push the remaining 40% of utilities. 

@Account Closed we aren't putting any capital in the deal. I am the working partner that found the deal, qualifying for the mortgage, completing and managing the rehab, and property managing. We will re-finance in 2-5 years where, where the financial investor will get their initial investment back and we will split the rest of the profits/cashflow 50/50.

It has had lots of ups and downs but is turning out to be a great learning experience and should be quite profitable for our first deal. Knock on wood we can still get it to the finish line without any more issues. 

Hey guys, thank you so much for your suggestions. I found another investor that is willing to put up the down payment and rehab costs. I will qualify for the financing, and we will extend the close date 2 weeks offering to cover the holding costs for the buyer. We're still working on some of the final details, but I think this will be a good solution. I definitely learned a few lessons on this deal and I really appreciate the help.