All Forum Posts by: Yousef Reda

@David Dachtera

Hey did you figure out what the tax implications are for people with positive cash flow? Do we lose or gain. 

Hi anyone have experience with this. Im looking into some great deals in USA with great cashflows and low property values in certain states. Im looking at tax implications for canadians that we would need to be charged 30% witholding tax. If we elect to file a US tax return then we can elect to only get taxed for the NET income based on a graduated scale. 

They charge 10% tax again if property is sold. 

Does anyone know overall if there is a huge tax disadvantage in the US versus Canada. Or are both systems similiar? 

Remember its not about the number of properties. Rather the quality of returns each property gets you. So if you have 5 properties that some are doing okay and some not so well it could be worse then having 1 or 2 properties that are doing well. Hence it depends. If you find a good partner who may show you investment opportunities that wasnt in front of you then it could be advantageous. However there is no definite right answer. Otherwise everyone in real estate would have a partner. 

Depends on the property and the deal your getting. If its a higher end property that you know is a good deal but your cash/finances cant afford it then venturing in with a partner would make sense. However anything within your financial realm is probably better if you do on your own. This is my two cents im not sure if anyone else has any other views. 

@Tom V.

Thanks. Yes im looking into other properties now. Much appreciated. 

Hey thanks Mags. 

However my brothers are reliable. There would be no consideration in evicting them. I do get your point and am reconsidering this investment. 

Thank you!

Very nice meeting you Sterling. However I dont look at real estate investment as just a road to financial freedom. I look at it a a hobby and something that will provide me a valuable product compared to any other hobbies. If I look at it as just financial freedom then you may be in it for the wrong reason. (Some people think that just because we are in something for the money that we are greedy people) However this is furthest from the truth for us. 

 Im new in this myself and am happy your own the road to success. 

Some advice that ive seen already is read the beginners guide for real estate investment on this website. It has a lot of other links to guide you in REI. Focus on a niche and go from there. Network and help others. Knowledge will come with time for all of us lol

@Erik Johnson

Thank you for asking!

The mortgage is 1451$/month, vacansy, repairs and PM are 5,7, and 10% of monthly rent. The property tax and home insurance and mortgage all put togethor is 2096$/month. Then add on the Vacansy, repairs and property management you get around 3100$/month. Thus total cash flow is 1411. 

Im getting the owner to send me copies of the leases to make sure they are truly renting for that much. 

How has the housing market been in London Ontario. I am looking into some properties there? 

expenses 2096 
repairs 225
vacancy 315
Property management 450
Rental Income stated by seller to be 4500$/month for all units
Cash flow 1414/month 
ROI 96%(As I'm only putting 17500 of my own money for a price value of 350,000)

Its walking distance to a university and will be an out of province investment for me. The seller seems to have multiple units available but the numbers seem to good to be true?