WHAT TO BUY!?

[JDRealty]

Hi everybody this is my first post on this forum and I`m looking for some advice on my first investment/home. I`m a young guy and I`m looking to buy something in the GTA (I`m from Mississauga so that would be my primary focus) that I can live in and rent out at the same time. But I don`t want negative cash-flow and want it to be legal. I would of course be happy to receive good capital gains off of it if it means sitting on it for a few years.

The main idea is to have someone pay off my mortgage and maybe receive a little bit of extra cash a month and in the long run be able to make a profit off of selling it.

Please inform me on what you think would be the best thing for me to do and please explain what I should look out for in a couple of years, such as maybe new regulations, interest rates, etc. All advice is greatly appreciated.

 

[invst4profit]

http://www.ontariolandlord.ca/forum/

Considering you are looking in the GTA you should be joining the site above.
In addition you should start studying the Ontario RTA before you even consider buying anything. You can`t expect to run a business without knowing and understanding the rules of the game.
You are considering entering into a very unfriendly business environment in Ontario and should educate yourself on the facts before you decide to become a LL.

 

[JDRealty]

Thanks for my first reply

I actually just signed up to ontariolandlord.ca and posted a topic there. And I`m gonna have a good look into the Residential Tenancies Act on my spare time. Thanks again.

I welcome more advice. I know I have much to learn and lots of things to look over for my basic plan.

 

[Thomas Beyer]

QUOTE (JDRealty @ Apr 17 2010, 06:07 PM) Hi everybody this is my first post on this forum and I`m looking for some advice on my first investment/home. I`m a young guy and I`m looking to buy something in the GTA ..
Are you handy ? then buy an old crappo in a nice neighborhood, fix it up while living there .. then rent some rooms to friends/buddies or a suite to strangers

If not so handy, buy a property where you can have room mates / buddies live with you in basement .. or a separate suite to strangers ..

buy in a decent neighborhood in high demand .. ideally the crappiest house in the area as it will have the most upside.

Don`t buy anything "weird" such as a house with no garage, weird layout, close to noise ..

In a few years you will make a bundle ..

more on "how to get started" and "5 ways to make money" in my blog (link in my footer)

 

[JDRealty]

Thanks these are good ideas. How do I find these links on your site by the way?

 

[Rickson9]

QUOTE (JDRealty @ Apr 17 2010, 09:07 PM) Hi everybody this is my first post on this forum and I`m looking for some advice on my first investment/home. I`m a young guy and I`m looking to buy something in the GTA (I`m from Mississauga so that would be my primary focus) that I can live in and rent out at the same time. But I don`t want negative cash-flow and want it to be legal. I would of course be happy to receive good capital gains off of it if it means sitting on it for a few years.

The main idea is to have someone pay off my mortgage and maybe receive a little bit of extra cash a month and in the long run be able to make a profit off of selling it.

Please inform me on what you think would be the best thing for me to do and please explain what I should look out for in a couple of years, such as maybe new regulations, interest rates, etc. All advice is greatly appreciated.

If you haven`t done so already, you should increase your ability to read and interpret financial statements.

 

[Thomas Beyer]

QUOTE (JDRealty @ Apr 18 2010, 01:14 PM) Thanks these are good ideas. How do I find these links on your site by the way?
?? By clicking on them ?

 

[JDRealty]

Rickson in what ways would I be able to train myself to read financial statements better?

And Thomas I was thinking about what you said. If I buy a property and choose to have my friends live with me do you think I should go into partnership with them or rent it out to them? They are good friends; kinda like family, so I wouldn`t want to run into any problems.

 

[JDRealty]

Thomas I can`t find those links on your website. So I was actually wondering if you can tell me how to navigate them through your home page.

 

[AndyLuchies]

A classic option is to buy a duplex with good curb appeal (so it will be easy to sell eventually), live in one half and rent out the other.

If you`re single and enjoy people, a buddy of mine is going a step further. He`s buying a house near a University for student rental housing. This way he can rent out everything but his own room, has lots of intellectual roommates to talk with, and is much more profitable.
But again, not everyone enjoys sharing in the student life.

 

[bizaro86]

QUOTE (JDRealty @ Apr 18 2010, 10:24 PM) Thomas I can`t find those links on your website. So I was actually wondering if you can tell me how to navigate them through your home page.


I think you might be clicking on his companies page, and not his blog. Click the link that says 80 lessons learned in his footer. Then click the sidebar for older posts, and go to October, as the posts he mentioned were made then.

Although, it probably would be worth the time to read everything in his blog!

Michael

 

[darleneosmond]

re: what to buy?

hello rein members

besides a positive cash flow property, should I also consider if the property has 2 or 3 or more bedrooms - should they be large (older homes tend to have small bedrooms) and are properties with 2 or more bathrooms easier to rent or resell?

thank you
Darlene

 

[housingrental]

Hi Darlene
Those questions are impossible to give good answers too
This will depned on:
Your particular market
The particular property
The particular price
Is a harder to rent 2 bedroom a bad purchase? Maybe. Or maybe a great purchase because its at a 8% cap vs an easier to rent 4 bedroom house at a 5% cap?
QUOTE (darleneosmond @ Apr 19 2010, 08:59 PM) re: what to buy?

hello rein members

besides a positive cash flow property, should I also consider if the property has 2 or 3 or more bedrooms - should they be large (older homes tend to have small bedrooms) and are properties with 2 or more bathrooms easier to rent or resell?

thank you
Darlene