Hello all, I`m new to this site, and fairly new to RE investing. I recently read Don Campbell`s 97 tips book which led me here. I`m hoping to get some of your opinions on my situation. Appreciate any insight you can provide.
I plan on building a rental property starting in the spring (St John`s, NL). This will be a standard two apartment in a good location (above 6 on the scorecard). Starting from scratch, there will be many mistakes and lessons learned from doing it this way. That is why I`m trying to plan now, well in advance to ensure all angles are covered.
Does anyone have similar experiences they could share? I see a lot of advantages doing is this way, I would qualify for GST rebates and so on. In addition, new homes in good areas have a great track record for resale after a couple of years.
When discussing mortgages and down payments with the bank, they will clearly want ~20% down payment if it is going to be a rental unit. The problem is that I don`t have that cash available at my finger tips. I could explain that I want this house for personal use, and then convert it to a rental, however, that is unethical and probably illegal. Can a no down payment method be used when purchasing a rental unit? Is this an ideal option? What options are there?
I currently own a rental unit, for the last 4 years it has maintained a positve cash flow. I currently have ~$20 in equity. Should I use the equity in my personal home or rental unit to come up with a DP for the new property?
Again, appreciate your comments
I plan on building a rental property starting in the spring (St John`s, NL). This will be a standard two apartment in a good location (above 6 on the scorecard). Starting from scratch, there will be many mistakes and lessons learned from doing it this way. That is why I`m trying to plan now, well in advance to ensure all angles are covered.
Does anyone have similar experiences they could share? I see a lot of advantages doing is this way, I would qualify for GST rebates and so on. In addition, new homes in good areas have a great track record for resale after a couple of years.
When discussing mortgages and down payments with the bank, they will clearly want ~20% down payment if it is going to be a rental unit. The problem is that I don`t have that cash available at my finger tips. I could explain that I want this house for personal use, and then convert it to a rental, however, that is unethical and probably illegal. Can a no down payment method be used when purchasing a rental unit? Is this an ideal option? What options are there?
I currently own a rental unit, for the last 4 years it has maintained a positve cash flow. I currently have ~$20 in equity. Should I use the equity in my personal home or rental unit to come up with a DP for the new property?
Again, appreciate your comments