I just closed a deal on a 1 bedroom condo in Regina, but I`m not sure what to do with it. If I rent it as is it will cash flow, If I reno it the value will jump about $35000 minus reno cost of course. I don`t want to sell it but should I? If I refinance it to buy another property then it may not cash flow anymore. I`m new at this and very confused!
QUOTE (sadie1 @ Dec 28 2009, 10:35 PM) I just closed a deal on a 1 bedroom condo in Regina, but I`m not sure what to do with it. If I rent it as is it will cash flow, If I reno it the value will jump about $35000 minus reno cost of course. I don`t want to sell it but should I? If I refinance it to buy another property then it may not cash flow anymore. I`m new at this and very confused!
You sound very confused.
You need to take a step back and figure out what your goals and objectives are.
For instance, why did you buy this condo in the first place? Was it so that you could rent it out? Was it so that you could flip it? Whey did you buy it?
Answer that questions first. Once you do, it should provide you with some clarity as to what you need to do next.
You have to be decisive in whatever it is that you choose.
Also, just because you renovate it, does not necessarily mean that it is going to `jump up in value $35,000`.
Again, go back and ask yourself, why you bought this in the first place. Once you have that question answered, use that information to help guide you to your next decision.
Best Regards,
Neil Uttamsingh.
http://www.firstrentalproperty.com
You sound very confused.
You need to take a step back and figure out what your goals and objectives are.
For instance, why did you buy this condo in the first place? Was it so that you could rent it out? Was it so that you could flip it? Whey did you buy it?
Answer that questions first. Once you do, it should provide you with some clarity as to what you need to do next.
You have to be decisive in whatever it is that you choose.
Also, just because you renovate it, does not necessarily mean that it is going to `jump up in value $35,000`.
Again, go back and ask yourself, why you bought this in the first place. Once you have that question answered, use that information to help guide you to your next decision.
Best Regards,
Neil Uttamsingh.
http://www.firstrentalproperty.com
QUOTE (NeilUttamsingh @ Dec 28 2009, 08:43 PM) You sound very confused.
You need to take a step back and figure out what your goals and objectives are.
For instance, why did you buy this condo in the first place? Was it so that you could rent it out? Was it so that you could flip it? Whey did you buy it?
Answer that questions first. Once you do, it should provide you with some clarity as to what you need to do next.
You have to be decisive in whatever it is that you choose.
Also, just because you renovate it, does not necessarily mean that it is going to `jump up in value $35,000`.
Again, go back and ask yourself, why you bought this in the first place. Once you have that question answered, use that information to help guide you to your next decision.
Best Regards,
Neil Uttamsingh.
http://www.firstrentalproperty.com
I purchased the property as a buy and hold. But what got my attention in the first place was that the similar units that had been renovated have been selling between 35000 and 40000 more than I paid for mine. So if I take out equity to by another what is the most logical way to do this. I`m not a seasoned investor but I would like to be sooner than later.
You need to take a step back and figure out what your goals and objectives are.
For instance, why did you buy this condo in the first place? Was it so that you could rent it out? Was it so that you could flip it? Whey did you buy it?
Answer that questions first. Once you do, it should provide you with some clarity as to what you need to do next.
You have to be decisive in whatever it is that you choose.
Also, just because you renovate it, does not necessarily mean that it is going to `jump up in value $35,000`.
Again, go back and ask yourself, why you bought this in the first place. Once you have that question answered, use that information to help guide you to your next decision.
Best Regards,
Neil Uttamsingh.
http://www.firstrentalproperty.com
I purchased the property as a buy and hold. But what got my attention in the first place was that the similar units that had been renovated have been selling between 35000 and 40000 more than I paid for mine. So if I take out equity to by another what is the most logical way to do this. I`m not a seasoned investor but I would like to be sooner than later.
QUOTE (sadie1 @ Dec 28 2009, 10:54 PM) I purchased the property as a buy and hold. But what got my attention in the first place was that the similar units that had been renovated have been selling between 35000 and 40000 more than I paid for mine. So if I take out equity to by another what is the most logical way to do this. I`m not a seasoned investor but I would like to be sooner than later.
Taking out equity to buy a subsequent rental property is a tactic that a lot or real estate investors use.
The most logical way of doing this would be through a secure line of credit a.k.a. Home equity line of credit (HELOC).
This is a better option than refinancing as you will only have to pay the interest on the funds when you use them. Verses, if you refinance, you will have to pay principle and interest on the funds from day one.
Since you are at the beginning stages of investing, I recommend that you align yourself with a knowledgeable mortgage broker, who can help you with subsequent financing moving forward.
If you need help in selecting a mortgage broker, I welcome you to refer to recent blog post on how to select a mortgage broker http://www.firstrentalproperty.com/4-cruci...ortgage-broker/
Best Regards,
Neil Uttamsingh
http://www.firstrentalproperty.com
Taking out equity to buy a subsequent rental property is a tactic that a lot or real estate investors use.
The most logical way of doing this would be through a secure line of credit a.k.a. Home equity line of credit (HELOC).
This is a better option than refinancing as you will only have to pay the interest on the funds when you use them. Verses, if you refinance, you will have to pay principle and interest on the funds from day one.
Since you are at the beginning stages of investing, I recommend that you align yourself with a knowledgeable mortgage broker, who can help you with subsequent financing moving forward.
If you need help in selecting a mortgage broker, I welcome you to refer to recent blog post on how to select a mortgage broker http://www.firstrentalproperty.com/4-cruci...ortgage-broker/
Best Regards,
Neil Uttamsingh
http://www.firstrentalproperty.com
Hi there,
I am from Regina and may be able to help you out. Give me a call or drop me an email if you`d like to discuss some options around your Regina condo.
Number is 535-2787 or email [email protected]
Thanks!
I am from Regina and may be able to help you out. Give me a call or drop me an email if you`d like to discuss some options around your Regina condo.
Number is 535-2787 or email [email protected]
Thanks!
QUOTE (MonteDobson @ Dec 28 2009, 09:27 PM) Hi there,
I am from Regina and may be able to help you out. Give me a call or drop me an email if you`d like to discuss some options around your Regina condo.
Number is 535-2787 or email [email protected]
Thanks!
Sounds good, I would like some solid advice on what my next move should be.
Thanks
I am from Regina and may be able to help you out. Give me a call or drop me an email if you`d like to discuss some options around your Regina condo.
Number is 535-2787 or email [email protected]
Thanks!
Sounds good, I would like some solid advice on what my next move should be.
Thanks
QUOTE (sadie1 @ Dec 28 2009, 11:46 PM) Sounds good, I would like some solid advice on what my next move should be.
Thanks
Considering the fact that you are not experienced you should be absolutely certain that the unit will cash flow before you even consider renting as an option.
Are you experienced enough to know how to calculate expenses and cash flow or are you assuming it will cash flow because the rent is higher than the mortgage payment?
Do you have any experience or idea of what is involved in being a landlord? Have you spent any time studying the RTA?
You need more information (we need more information) before we can advise you and before you can make an informed decision.
The numbers are the most important factor in making a informed business decision.
Thanks
Considering the fact that you are not experienced you should be absolutely certain that the unit will cash flow before you even consider renting as an option.
Are you experienced enough to know how to calculate expenses and cash flow or are you assuming it will cash flow because the rent is higher than the mortgage payment?
Do you have any experience or idea of what is involved in being a landlord? Have you spent any time studying the RTA?
You need more information (we need more information) before we can advise you and before you can make an informed decision.
The numbers are the most important factor in making a informed business decision.