All Forum Posts by: Yves Bourdeau

Great work and thanks for sharing @Matt McKee. I'm just getting started in real estate and seeing your video and success is really encouraging, especially that I'm finding out about the rigid tenancy rent control in Ontario. Sometimes rents are so low and we can't really do anything about it when taking over a property with existing tenants. I like the BRRRR approach and I've read up on it quite a bit. It's the way to go I guess if you want to set the rent at comp rates. It worked out great for you on this project. I may have missed you giving out this info but how long did it take you from the day you got the keys to the day you finished the rehab? Let's see if Cornwall area has some good deals so I can try my hand at this.

Yves

Hi,

I'm new to the world of real estate. I still haven't done my first deal yet but I'm absorbing as much knowledge as I can on the subject and went to my local bank to find out what I'm possibly eligible to borrow.  Good new for us.  I was so pumped and ready to start investing in income properties.  I started watching tons of videos and reading a bunch of books and started researching the area I want to invest in then I came to the realization that I may be getting into a trap by investing in duplexes or triplexes in Ontario.  I don't know if the rest of Canada is like that but how can someone make reasonable cash flow if we can only raise our rent on average 1.7% every 12 months according to the last 10 years (pre-Covid) rental laws?  I found a few duplexes I would like to put an offer on and do some renovations on but with the set rent at the moment and not being able to augment it more than about $15 a year per tenant, the numbers just don't add up.  It seems like the system is set in a way where landlords can't really improve the condition of their house without knowingly loosing equity or cash flow.  As a new owner I'm not even allowed to put up the rent even if the current owner chose to not increase rentals in years.

Does anyone have some good news or facts to share that would give me a spark of hope here?

I'm moving from Victoria BC where the average house is above a million dollars and rents in BC are a record high in Canada and going to Cornwall Ontario to take care of my mother with an idea to invest in some multi-family properties where my wife and I would dabble a bit in real estate. Flip or BRRRR or who knows. It sounded like lots of fun until I got more educated about the reality of Ontario Residential Tenancies Act.

Maybe I'm missing something, I'm sure lots of you out there are doing well.  Maybe you have some advice.  Maybe the idea is just to look long and hard to find the gem.  Maybe the game is to find old abandoned dilapidated houses to Rehab so I can set the rent myself.

I'm not giving up. I'm determined but I'd like to hear from some people, especially those who know the area I'm moving to. I'd say in a grid between Alexandria, Cornwall, US border and Quebec border. I would probably expand the area when I know more about real estate at a distance, getting a feel of finding quality RE agents, PMs, GCs If getting in BRRRR.

Thanks,

Yves

Thank you Jason for replying.

I guess part of my question too was, has someone had the experience of having to change jobs or relocate like I have to do and not being able to keep your job just before you are ready to invest in a duplex or triplex.  How long did you have to work at your new stable job before you qualified again to invest in that $150,000 or $200,000 duplex?

Yves

Let's say I want to buy a duplex in another province.

Would the mortgage agreement have some sort of clause asking for a guaranty that I'll be staying here at the same employment for a certain amount of time knowing that the investment property is in another province?

On the other hand, If I want to buy as an owner occupant of one of the units of this duplex which means I'll be moving there soon after buying the house. The bank knowing this, I'm sure they will be asking to secure an employment first and that brings me to my next question.  How long would I have to have an employment to qualify again to buy a house.  At the moment I'm eligible to borrow enough for the investment range I'm looking at.

Thank you.