- Joined
- Aug 26, 2010
- Messages
- 380
We had never bought RE as an investment until 6 years ago when after paying off our house mortgage in 4 1/2 years of dedicated focus we switched gears, refinanced that house and put all 180K we pulled out as equity into buying a 24 unit apt building.
Although I knew nothing about apartment buildings I knew that building had to be a good deal as half the rents were at 750 but the other half were 585-650 as the owner lived in the building and didn't raise rents on people who didn't leave, and there was no rent control in this province stopping rent raises. Going through the CMHC financing process meant they wouldn't insure a deal on anything other than actual rent revenues. On the day of closing we were giving out rent increases of up to 200 $. I didn't understand the value increase that would mean, I only thought about the increased cashflow per month.
6 years later on Thursday the CMHC refinance process was finally completed and 567 125.48 landed in our bank account. The reduced interest rates over the 5 years between 2010 and now has meant that although the debt load is now 600K higher, the monthly cashflow is only 800 $ less... and now we have the cash reserves to ride out any kind of storm.
I type this from the south of France, where one apt building deal allowed me, my wife and family of 3 young kids to move and retire to at the age of 41. We added more to the portfolio over the years - 5 single family rent to owns, an 18 unit ocean front development - but it was just this one deal that set us free.
To anyone reading this I would say this: you too can find a deal that will change your life.
Good luck.
Although I knew nothing about apartment buildings I knew that building had to be a good deal as half the rents were at 750 but the other half were 585-650 as the owner lived in the building and didn't raise rents on people who didn't leave, and there was no rent control in this province stopping rent raises. Going through the CMHC financing process meant they wouldn't insure a deal on anything other than actual rent revenues. On the day of closing we were giving out rent increases of up to 200 $. I didn't understand the value increase that would mean, I only thought about the increased cashflow per month.
6 years later on Thursday the CMHC refinance process was finally completed and 567 125.48 landed in our bank account. The reduced interest rates over the 5 years between 2010 and now has meant that although the debt load is now 600K higher, the monthly cashflow is only 800 $ less... and now we have the cash reserves to ride out any kind of storm.
I type this from the south of France, where one apt building deal allowed me, my wife and family of 3 young kids to move and retire to at the age of 41. We added more to the portfolio over the years - 5 single family rent to owns, an 18 unit ocean front development - but it was just this one deal that set us free.
To anyone reading this I would say this: you too can find a deal that will change your life.
Good luck.
