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.
Advice Welcome
- Thread starter dustin22
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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.
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.
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Something to consider. You have XXX thousands of dollars tied up in the property right now. Money needs to earn its keep and right now that money is buried, stagnant. You need to kick it`s butt out on the street and get it working for you. Sell the house and invest the cash or take out a home equity line of credit and rent the place out, but what ever you do start earning some money off of your investment.
Figure out what you would like to do and research how to do it as suggested in the previous post.
Also don`t over worry about interest rates just punch in the numbers based on rough estimates and act accordingly. Rich people always borrow other peoples money to increase there own wealth.
Right now you own a liability because it is costing you money every month not earning you money as it should. If I were you I would make the decision to stop losing money. That does not necessarily mean becoming a LL.
Figure out what you would like to do and research how to do it as suggested in the previous post.
Also don`t over worry about interest rates just punch in the numbers based on rough estimates and act accordingly. Rich people always borrow other peoples money to increase there own wealth.
Right now you own a liability because it is costing you money every month not earning you money as it should. If I were you I would make the decision to stop losing money. That does not necessarily mean becoming a LL.
QUOTE (fumbrunner @ May 9 2010, 08:18 AM) 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.
Thanks Gerry, I really appreciate the advise. It would be a great help if I could get the Realtor`s name that you recommend.
Also does anyone else know about what happens after you have bought your 3rd rental property. How does the new 20% down payment and CMHC`S new rules affect purchasing rental properties.
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.
Thanks Gerry, I really appreciate the advise. It would be a great help if I could get the Realtor`s name that you recommend.
Also does anyone else know about what happens after you have bought your 3rd rental property. How does the new 20% down payment and CMHC`S new rules affect purchasing rental properties.
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QUOTE (dustin22 @ May 9 2010, 08:02 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.
does the existing property cash flow with an 80% mortgage ? or 60% ?
i.e. step 1: re-finance the existing property
step 2: buy s.th. nice with the cash i.e. celebrate !
Step 3: invest the cash
YOU have to feel comfortable with the debt level .. and some folks are and some are not ! Only you can decide that !
does the existing property cash flow with an 80% mortgage ? or 60% ?
i.e. step 1: re-finance the existing property
step 2: buy s.th. nice with the cash i.e. celebrate !
Step 3: invest the cash
YOU have to feel comfortable with the debt level .. and some folks are and some are not ! Only you can decide that !
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- 219
QUOTE (dustin22 @ May 9 2010, 10:58 AM) Thanks Gerry, I really appreciate the advise. It would be a great help if I could get the Realtor`s name that you recommend.
Also does anyone else know about what happens after you have bought your 3rd rental property. How does the new 20% down payment and CMHC`S new rules affect purchasing rental properties.
Email me at gggmmmar@(nospam)hotmail(dot)com and I`ll give you her name. None of my properties are CMHC insured. You do not have to go through CMHC if you have 20%.
Also does anyone else know about what happens after you have bought your 3rd rental property. How does the new 20% down payment and CMHC`S new rules affect purchasing rental properties.
Email me at gggmmmar@(nospam)hotmail(dot)com and I`ll give you her name. None of my properties are CMHC insured. You do not have to go through CMHC if you have 20%.
QUOTE (fumbrunner @ May 9 2010, 09:56 PM) Email me at gggmmmar@(nospam)hotmail(dot)com and I`ll give you her name. None of my properties are CMHC insured. You do not have to go through CMHC if you have 20%.
In my opinion, it would depend on what type of investor you consider yourself...Are you in the "game" for cashflow? Flipping? Buy and hold?
We have always gone the non-CMHC insured route as well - everytime we re-mortgage one of our investments we prefer to have at least 20% equity (or more) in the property. Keeps cashflow going, and protects you in case the market adjusts.
In my opinion, it would depend on what type of investor you consider yourself...Are you in the "game" for cashflow? Flipping? Buy and hold?
We have always gone the non-CMHC insured route as well - everytime we re-mortgage one of our investments we prefer to have at least 20% equity (or more) in the property. Keeps cashflow going, and protects you in case the market adjusts.