All Forum Posts by: Zack Kahl

Glad to hear you agree @Noel Devere-Bennett . Thanks for the help and information. It is very much appreciated! 

Hey @Noel Devere-Bennett , I appreciate the response. I am glad to hear there has been some stabilization of rents, as having rents go down is a large concern of mine over the next few years. That and finding tenants in a timely matter are among the highest on my list. The depreciating values don't concern me too much though, as I am solely investing for cash flow over the long haul. All the dropping prices and lengthy days on market I'm seeing very much have my interest, as it is the opposite of what we are seeing here in B.C.

Do you manage your properties yourself?

Again I appreciate the help!

Hey @Ryan Brocklebank, I appreciate the insight. That's exactly how I was feeling about the situation. I was thinking if one could find a value add townhouse in a good area with the mid scale rent in mind, you would be alot safer than the very low end of the spectrum. What kind or rentals do you own? Have you seen/had any issues finding tenants or having to lower rents? I know that the province is experiencing a down turn but if I'm not mistaken Calgary is still seeing a fair positive population growth. Just curious if this could entail a growing rental demand.

@Ken T. If you are looking to invest here @Greg Eaton is the man to talk to. Unlike my self he has got it very well figured out haha!

@Ken T. Ahh yeah that's what has me a little worried as well. However I've been considering looking there (Calgary primarly), just because of the current down swing. It seems that prices are getting closer to making sense. However still not sure if it something I want to commit to yet.

I dont have any properties here currently, however I am trying to acquire some form of multifamily this year. The market here is definitely on the up swing and has been since 2017. Most properties dont make sense anymore as rentals and the lack of supply and slow market has made the competition tight. There is definitely potential however I am having a hard time finding out how to exploit it.

Hey Ken,

Unfortunately I can be any help with your question as I currently live in BC. I was just curious as to what has you scared in alberta, If you dont mind me asking.

@Ken Didy thanks for the insight. I have to agree that keeping it rented or finding tenants is one of my larger concerns with the current oversupply. This is especially true being that I dont live in alberta. This aside the strata is another thing that I'm not sure I would want to take on. I would love to here from anyone else who is doing any thing in the townhouse/condo/ apartment space, and what your thoughts are.

Thanks,

Hey everyone,

Just curious on Calgary investors current outlook for the market. I have been browsing around and finding that some townhouses/condo/apartments are sitting under 200k. From what I can see these are getting pretty close to being good cash flow deals. Just curious of what the local insight has to hold on the current downturn situation and how it has affected current rentals and possible future endeavours.

Thanks,

Zack

Hello all!

I will be in Calgary the 24-25th and usually go every month or so. I was wondering if any investors in the area would be up for a cup of coffee and to share your experiences in the Calgary market and what strategies have worked for you.

If your looking at the Capex, maintenance and vacancy expense then it really depends on quite a few factors. The age of the property along with condition can affect how much you should be saving for capeX and vacancy. A quick and dirty way of adding it to your calculation would be 5-10% of the total rent for capex and the same would go for maintenance. Vacancy can range as well, you would have to look at your local market and turn over rates in the area you want to invest. If the vacancy rate and turnover rates are high, then the amount you put aside should be more. This is so you don't experience a large loss if you have an extended period of vacancy. Again a generally quick and dirty analysis gauge would be 5-10%. So say you are getting $1000 in rent, at 5% you would put away $50 for capeX, $50 for maintenance and $50 for vacancy. These number really come up to what the property is like and if you feel you need the safety buffer(definitely not a bad idea). It would be a good idea to look at what really needs replacing on a property you are inquiring. Then taking a percent out of the rent to eventually replace the expected large cost items that will need replacing in the life you will own the property (roof, furnace, appliances ect). Here is a link to great video Brandon did on calculating numbers on properties https://www.youtube.com/watch?v=T_7vhsSBi7c