All Forum Posts by: Tyson Head

Investment Info:

Other buy & hold investment in Vernon.

Purchase price: $164,000
Cash invested: $40,000
Sale price: $300,000

My wife and I sold our live in flip and purchased a 2/1 condo of 1000sq'. The couple that sold us it wanted to stay for a few months so the owners turned into our new tenants.

Investment Info:

Single-family residence buy & hold investment in Vernon.

Purchase price: $505,000
Cash invested: $100,000

We sold our condo at a high value and purchased a 3/3 single family house on .25 acre. Invested cast was the down payment.

How did you find this deal and how did you negotiate it?

Found it on the MLS and just wrote offers with conditions. We were the second accepted offer as the first could not qualify.

How did you finance this deal?

Down payment was payed from the sale of our previous 2/2 condo.

How did you add value to the deal?

Finished the basement, updated the windows and increased the curb appeal with planter boxes and flowers.

What was the outcome?

Plan to keep it for a while as our principal residence, raise our little family and see what comes up in the future.

Investment Info:

Single-family residence buy & hold investment in Vernon.

Purchase price: $505,000
Cash invested: $100,000

We sold our condo at a high value and purchased a 3/3 single family house on .25 acre.

What made you interested in investing in this type of deal?

We were looking for a family house and my wife and I were expecting our 1st and 2nd child real soon. Looking for a place that had an unfinished walk out basement for suite potential in a good neighbourhood.

How did you find this deal and how did you negotiate it?

We found the house on the MLS. It was an estate sale and previous accepted offer fell through. Basic negotiations, never split the difference.

How did you finance this deal?

We sold our what was to be buy and hold property that we were living in and used the money for the down payment on this house.
Used a traditional bank mortgage for the remainder.

How did you add value to the deal?

2/3 of the basement was unfinished so we turned that section into a 1/1 basement suite that now rents out for $1000 per month. Also finished the landscaping, built a shed, repaired the fence, new paint through out, new windows where needed, rebuilt the master bathroom and closet updated the kitchen lighting, new bathroom countertops and sinks. House had some recent renovations completed prior to our possession. Have future intention to install 2 closets and a window to turn it into a 5/3 house.

What was the outcome?

Amazing tenants, great house in a perfect location and extra cash in our pockets by the end of the day. The $15k we put into the basement suite increased the house value by $40k if we do decide to sell.

Lessons learned? Challenges?

Don't trust other peoples reno jobs, many don't know what they are doing. Find good tenants that make your life easy.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My usual real estate agent.

Investment Info:

Other fix & flip investment in Vernon.

Purchase price: $205,000
Cash invested: $40,000
Sale price: $255,000

2/2 Condo unit with attached garage that we purchased from the revenue from a live in flip we completed. Purchased it so we had a place to live until we found some where else. Original intention on renting it out afterwords.

What made you interested in investing in this type of deal?

Easy rental options, familiar with these types of properties. Very unique design as it had an attached garage.

How did you find this deal and how did you negotiate it?

My wife found it on the MLS when I was away at work. Her and our realtor put an offer in and it was accepted before I was even home. The first time I saw the unit was when I was moving into it.

How did you finance this deal?

We used the cash that we made from selling our live in flip foreclosure home for the down payment then a traditional mortgage for the remainder.

How did you add value to the deal?

We put a new coat of pain in the areas that needed it, painted the kitchen cupboards and that was about it.

What was the outcome?

After living in the unit for half a year we didn't agree with how the strata (HOA) was organized and managed. We felt that there was going to be a lot of repairs needed in the future and wanted out before the levies start rolling in.

Lessons learned? Challenges?

Always review strata documents and learn about how the things that you can't control can affect you. We felt like the unit was going to cost us in the long run so we quickly took advantage of the rising market values and turned our planned buy and hold property into a fix and flip.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just with our usual real estate agent.

Thanks

Ehsan Rishat

Investment Info:

Other buy & hold investment in Kelowna.

Purchase price: $145,000
Cash invested: $30,000

2/2 Apartment unit with 900sq'. Not entirely my investment but my now wife had her own place that she purchased some time back. We got together and she moved in with me and started to rent out her place. We now own the unit out right and property in Kelowna has recently skyrocketed. Unit is now appraised at $330 000 and rents out for $1500 per month. Positive cash flow of $1100 after strata (Canadian HOA), insurance and other expenses.

What made you interested in investing in this type of deal?

The deal came with the girl and we saw the value in renting it out rather then selling.

How did you find this deal and how did you negotiate it?

I found the girl sitting by the fountain by the lake and there was not too much negotiations to have her join me on a date, ha ha.

How did you finance this deal?

Now wife took care of it all before we met. Did manage to pay off the remainder of the mortgage from some cash we had left over from a live in flip we did together.

How did you add value to the deal?

No add value on our end. The unit is located in an amazing part of the word. Location, location, location. My wife did however do a major upgrade as the unit above flooded and nearly everything had to be replaced, under insurance might I add.

What was the outcome?

Positive cash flow and we hope to open a HELOC in the future and use the equity to purchase a small multi-family. Because of the location we always have high paying good quality tenants that seem to stay for 3-5 years on average.

Lessons learned? Challenges?

The location makes our life easier. Should have bought more when we had the chance.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

It was a foreclosure that my wife had to fix up. Used a traditional real estate agent.

Investment Info:

Other buy & hold investment in Vernon.

Purchase price: $164,000
Cash invested: $40,000

My wife and I sold our live in flip and purchased a 2/1 apartment unit of 1000sq'. The couple that sold us it wanted to stay for a few months so the owners turned into our new tenants. Cash flow of $200 per month and appreciation of $30k in the first 1.5 years. It is working out very well for us so far.

What made you interested in investing in this type of deal?

Positive cash flow, future appreciation and learning more about dealing with tenants.

How did you find this deal and how did you negotiate it?

MLS and wrote an offer 1 hour after viewing. Owners took our offer on the condition that they could stay for 6 more months and rent off us.

How did you finance this deal?

Cash down payment from the profits of a live in flip and traditional 20 year mortgage. Nothing creative.

How did you add value to the deal?

Didn't add any value. There was a recent reno before we purchased it. The apartment complex put out a bunch of money and updated all the common areas and this made the appreciation jump dramatically.

What was the outcome?

All positive so far. Will need to install a new fridge and stove in the next couple of years though.

Lessons learned? Challenges?

Unit is not in the greatest neighbourhood which keeps rents down and does not bring in the most reliable tenants. Lots of screening!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just my trusty real estate agent that I have worked with in the past.

Investment Info:

Other buy & hold investment.

Purchase price: $171,300
Cash invested: $171,300

Purchased a 1200 Sq' 2/2 condo to live in. First home purchase.

What made you interested in investing in this type of deal?

Need a place to live, ended up moving and renting it out.

How did you find this deal and how did you negotiate it?

I was working as an electrician at the time and building the units, No real negotiations

How did you finance this deal?

Home equity line of credit

How did you add value to the deal?

Didn't, just appreciation

What was the outcome?

Worked my buns off to pay off the HELOC as fast as I could not it rents out for $1250 per month.

Lessons learned? Challenges?

Way easier to have someone else pay my bills for me.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just the listen agent.

Investment Info:

Single-family residence fix & flip investment in Vernon.

Purchase price: $312,300
Cash invested: $70,000
Sale price: $445,000

Picked up a foreclosure house that were were planning on using as a live in flip. It was a 5 bedroom, 3 bathroom single family house on 1/2 acre of land. This house was highly neglected and had water leaking into the house in two locations and the doors and windows would not open or close fully in the two front bedrooms.

What made you interested in investing in this type of deal?

Sweat equity, DIY and add value.

How did you find this deal and how did you negotiate it?

MLS, Foreclosure

How did you finance this deal?

Bank Mortgage for the initial purchase and cash for repairs.

What was the outcome?

Sold it and used the profits to purchase two condos.

Lessons learned? Challenges?

I like renos, loads of work, amazing opportunity to make money, with proper assessment things can work out amazing!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just my real estate agent

Investment Info:

Single-family residence fix & flip investment in Vernon.

Purchase price: $312,300
Cash invested: $70,000
Sale price: $445,000

Picked up a foreclosure house that were were planning on using as a live in flip. It was a 5 bedroom, 3 bathroom single family house on 1/2 acre of land. This house was highly neglected and had water leaking into the house in two locations and the doors and windows would not open or close fully in the two front bedrooms. My wife and I moved in and had to do something with every surface in the house. Fixed the leaking chimney, rebuilt the front deck that was sloped towards the house bringing water into the stairwell. We also had to reinstall a new post in the two car garage and lifted it by two inches, this took the pressure off the bedrooms above and the the doors and windows started to work again. All new appliances, furnace and hot water tank. Took truck load after truck load of junk to the land fill. Hours of landscaping and we had a very respectable place to call home, for someone else.

What made you interested in investing in this type of deal?

Sweat equity, DIY and add value.

How did you find this deal and how did you negotiate it?

MLS, Foreclosure

How did you finance this deal?

Bank Mortgage for the initial purchase and cash for repairs.

What was the outcome?

Sold it and used the profits to purchase two condos.

Lessons learned? Challenges?

I like renos, loads of work, amazing opportunity to make money, with proper assessment things can work out amazing!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just my real estate agent