All Forum Posts by: Yousef Reda

@Jaysen Medhurst

@Jaysen Medhurst thanks for the response. This is a currently used as commercial. It has 6 residential on second floor and 1 commercial in bottom floor. The plan is to convert the commercial unit to 5-6 more units or so. So total of 12 units. Closing costs includes contractor, concrete inspector, plumbing inspector, lender fee, mortgage broker fee, and any other crap that needs be. Yes the lender was talking about 2.5% so I may look at another lender for this deal to optimize the initial buy.

In Canada these are the rates currently which are usually better then USA at this point in time.

Repairs are low as we do a lot of the work ourselves and we have a group of people who are able to get repairs done cheaper then average prices

Cap ex I figure since the whole thing is being gutted that I shouldnt? How about in newly developed buildings do they add cap ex for those?

Yes for larger buildings with this many units the fees drop to 4-8 % in this area. I will have a family member do it for 4% for property management

The 3K electric bill is basically a worse case scenario picture of not just electric but all utilities combined. Hydro/water/electric based on some of our other properties that are nearby this one. It would be around 250$/unit for a 2 bedroom per month. So if we have 12 units then 3000$ (Keep in mind most of our units will only be 1 bedrooms- so hopefully costs would be lower)

The insurance is the current insurance cost. However good idea to get a quote for due diligence. 

Yea property tax was 2018 bill. Okay ill look into talking to city about seeing how much it could change

The cap rate of this area is 5.4% but I say 6% to be safe.

Vacansy in this part of Ontario is supposed to be 2.3% but I increased it to 3 percent.

What do you think of overall deal based on this. Thank you so much for your wisdom and time

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*This link comes directly from our calculators, based on information input by the member who posted.

@Edward Liu these are numbers automatically generated from the biggerpockets rental calculator. Current NOI is 90,000 but after I increase rents should jump to 130,000$ according to this calculator. Also I have multiple multiunits in ontario that I am familiar of electricity and hydro costs. Typically if you have a bad tenant that doesnt care about energy conservation there unit typically reachs 250-300$/month. Good tenants are more like 100-150$/month. We do get some tenants to pay for there own utilities and others to do a shared utility agreement, hence this will offset a lot of the inflated expenses that I put in the calculations above. So what i used was the high 250-300$/month/unit for utilities in my expense calculations

Great so what I needed to know is that it is possible. So im going to try to a bit ambitious as Grant Cardone likes to emphasize. More units the better albeit many factors involved in this statement. I mean in the end its a game of coordinating a crew of contractors, lawyers, accountants, property managers, etc. 

Although I have multi properties I dont have any that are in the 10+ range. However it should be more economical then my fourplexes and triplexes. 

I am thinking of taking a mastercourse with EDNA Keep who is essentially boasting to be the Rich Dad Poor Dad course of Canada.  

Anyways any other thoughts would be much appreciated. 

Looking at getting two apartment complexes. One in Ontario and one in Manitoba. The Ontario one is a delabitated property and the Winnipeg one is pretty much turn key that needs a bit of lipstick. 

Ontario property:
6 unit + 1 commercial -> Plan to convert to 12 unit residential 
B- C class area 

Estimated renovation cost ~ 300 K
Monthly income 12400$ and expenses 9779.98$ (Includes cap ex, repairs, maintenance) 

Cash flow prob around 2200 -4500$/month
Buying at cap rate of 8.57% and market cap rate typically 5-6%

Purchase price: Only 700 K 
After repair value at a cap rate of 6% should be around 1.5 Million
Cash needed $452,000 ( I have one investor who will come in with me at 128 K where I would cover the remainder of the cost) 

Manitoba property
14 units all 2 bedrooms
c class area 
Estimated renovations around 60,000$
Issue here is rent control in Manitoba have to jump through a lot of hoops to get around it 
Monthly income 16966$, monthly expenses 11172.89(Includes cap ex, repairs, and PM) 
Cash flow probably around 5800$-6600$ depending on few variable factors
Buying at a cap rate of 10.85% and the cap rate of this area is about 8%. 

Purchase price 1.2 million 
Cash needed $410,000 
Post repair value: 1.6 million dollars

I only have enough liquid cash to buy one of these. The other property I would be able to get from secured line of credit from my properties.

My question is has ANYONE ever baught 2 apartment complexes at the same time and if so is it feasible?. My mother would be helping me manage the Ontario one while I work on the Manitoba one. Secondly is it wise to use only credit to purchase my Manitoba property as it is in theory cash flowing well and hence can take the extra cost from a line of credit for the down payment? 

Anyones advice. I would like to hear from people who actually have done apartment complexes please. THANK YOU !

@Matt Gilroy Tell him your doing a random check to look at smoke detectors, check furnance, and general inspection of property for your records. Say you would like to identify any issues now to offset future inconveniences for him. 

AirBnB now automatically calculates a monthly income for your particular address by comparing local prices. They give you a monthly income based on 50% occupancy which so far has been consistent with our earnings. Also yes if you want to be double sure use airdna.co . 

As stated above with concerns regarding increased attention to an airbnb. There has been many hosts that are able to own multiple properties with having the whole experience automated. They get in automatic email giving instructions to either pick up a key at location or have a pin code. They enter in and have instructions on internet and rules of the house. They leave and have a cleaner automatically come in the house to clean which you can charge an extra fee if you would like. Most guests are used to this extra cleaning fee.

@Account Closed thanks. He doesnt know anything about seller finance. Ive never done a seller finance. Ive always used my own money. 

Live in an area where homes are about 400 k. Landlord does not know how to manage this 3 bedroom house. We think he can come down a lot on the price ~200 k because he just wants to get rid of it. Can prob rent it for 1500$/month plus utilities.

What is a good way to approach him on this? He may owe taxes also to government. We are in Manitoba. 

Anyone have experience with opening a resort (pool, bar, restaurant, convenience store, excursions, tours etc) in a foreign country. Im looking at Philippines. Any resources to get started would be greatly appreciated. Im currently with a group of investors and we have started formulating a buisness plan for this and have hired an architect for design.

However i cant find to much information online on navigating through this and mitigating as much risk as possible. Any help is GREATLY APPRECIATED!

ALSO any ideas of which banks example foreign versus north american banks to fund foreign property. The catch here is im a dual citizen of Canada and Philippines!

Any help is greatly appreciated 

For this market is it a good time to sell or just hold.