QUOTE (dustin22 @ May 9 2010, 09:02 AM) Hi, I`m relatively new to the real estate business. I have one property in Winnipeg which I own completely with no mortgage due to flipping 2 houses prior. I am looking at renting it out but am kind of at a stand still on where to go from here. With the 20% down payment required for another rental property I know I can remortgage and try to keep the ball rolling but I don`t know if this is the way to go as mortgage rates my jump in a few years??? My goal is to someday quit the Military and be able to spend time with my wife and kids at home. I know there are a lot of experienced people out there who started out where I am now and I`m looking for some advice on how to get started. Thank you for taking the time to read this.
Hi Dustin,
The first thing that you need to decide whether you want to get into the investment property business. There is alot of work associated with being a landlord and you need to determine whether you have the time and commitment to allocate to the business. If that is a yes, then I would suggest you pick up Don Campbell`s "Real Estate Investing in Canada". I started before reading this book, but reading it completely changed the way I look at my business. Finally, you have alot of equity in your home that you could use. Interest only payments on a homeowners line of credit can help to get you started and the interest paid is tax deductible. It`s how I got my start.
Also, Winnipeg is a tough market with little cashflow in good areas. There are areas to completely avoid (core of the north end), but there are pockets in so-so neighbourhoods that offer good opportunities. There are very few properties available at the moment and you have to be viligant on MLS (or have a realtor that is - I have a good one I could recommend).
Hope that helps. Let me know if you have any other questions. There is also a local group that meets from time to time that might provide good networking opportunities. I haven`t made it out to one but plan on it.