Recent content by TangoWhiskey

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    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    Thanks Matt. I generally pay almost no attention to cap rates instead focusing on cash on cash return, it was partly through this post that I started to realize cap rates had compressed further - I was trying to decide what cap rate to use to underwrite an upcoming CMHC refinance and the cap ex...
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    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    I self-manage in one of the communities through an on-site manager, and outsource in the other, but I live in the S of France and have done for 4 of the last 6 years. The high cashflows that small market buildings can produce (3-5K per month per stabilized building is not unusual) added to the...
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    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    Another heavy hitter response ... Cheers. Isn't the avoidance of refinance risk the real value of CMHC? Added to the outsize paydown returns due to the low interest rates and the fact it is a self-financing policy? Let me know of any holes you see in this plan: I focus very specifically on two...
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    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    Watching the vote counting here and running the numbers you just taught us ... So on a 300 basis point spread bldg on an 85 % cmhc refi mortgage that would mean a cash on cash return of 20 % ... assuming the equity left in at refi was actually the market value and the necessary investment to...
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    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    Thks Matt. Great info on the 15% historical cap rate reduction due to capex. I didn't know that stat. A heavy hitter response
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    Crossed the 100 Property Purchase Line since I started Investing 6 years ago

    Good for you :) Congrats. Are they all SF or ..?
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    Tiny Houses

    A less well known aspect of tiny homes outside of cities is that they are frequently mounted on a trailer in order to make them a 'mobile' home. This allows them to avoid municipal zoning requirements for sewer and power hook up for use as a house. You can park it anywhere just like a RV. The...
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    Math on spread between mortgage rate and cap rate in calculating (rough) MF profitability?

    I've often heard it said the fundamental is the spread between borrowing and cap rate on multi family. How would the math work? assume 2 million $ purchase of building generating 20K gross rents in smaller community at a 6.75 cap 85 % CMHC mortgage of 1 700 000 at 1.75 % rate = monthly payment...
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    Selling Calgary property owners are currently working/living overseas

    You need to fire that realtor asap and get one that is in the real world.
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    CMHC and Bank possibly willing to over-mortgage MF property ... what to do?

    thks for thereply and time in - you're correct in your solution of letting PM go and finding and training live-in manager - but we tried repeatedly to do this and so far each late middle aged early retired guy we've tried has been a total failure (all of them ex govt employees on early...
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    How to hedge currency risk on mid-long term overseas purchase

    Input sought on risk diversification... I'm considering taking cash overseas (legally, fully declared) and park some in a bank account for liquidity but also buy an entry level low leverage property - you can get fixed 25 yr mortgages in Europe at 2-3 % as a non-resident at 70 % LTV. Good deal...
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    CMHC and Bank possibly willing to over-mortgage MF property ... what to do?

    That's a deal on dinner ... And as you know SW France and Costa Brava are awesome. Come hiking in the Pyrenees followed by beaches on the Med. God's country.
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    CMHC and Bank possibly willing to over-mortgage MF property ... what to do?

    thanks for the reply. It doesn't have cashflow and in fact we bought out our partner partly because we are experimenting with what appears to be the rest of Canada's experience in MF and RE generally that cashflow is not there at todays valuations. The other reason we bought him out was he was...
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    CMHC and Bank possibly willing to over-mortgage MF property ... what to do?

    Hi, we own an 18 unit, tried to sell property last year, highest offer was 2.5 mill. Current total debt is 2.1 million. Rent roll is about 20500, almost always full, very lean operating costs for utilities on paper but high maintenance and insurance costs due to the fact it is 5 structures...
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