What I suggest is take a two or three year fixed rate now although there's not a significant difference with the 5 year one but better than nothing. Then start and keep taking variable until you pay off your mortgage.

Thanks Michel for your input. I am actually familiar with cash flow analysis and yes you're right that this would be a negative one on a 20% down payment. Regarding this financing CAP rate it could be that they are using different metrics like Thomas and you said but I will try and contact...

Thanks Thomas. I will try to get in touch with a few of the names I came across here in the forum.

Thanks Thomas, appreciate the reply. I agree with you that value is subjective. Why I think they are overvalued though, is because I'm taking a cash flow investor's perspective I mean where cash flow is negative and CAP rates are low and price to rent ratio is way higher than it used to be in...

Good evening everybody. I was just checking some proforma on apartment buildings in different cities in Canada and I noticed some proforma have two CAP rates, one is called CAP rate and the second is called financing CAP rate. Example: Price: 850,000 Revenues: 64,440...

Regarding number 2 I mean the one with inflationary return, usually the average annual return over a 10 year period is 2-3% or like 20-30% over the whole 10 year period? I'm curious here because of this is the expected return then why bother with an apartment building just buy single houses and...

Thanks Matt. I appreciate your input.

Thanks gentlemen for the replies and clarification which I find very helpful indeed. I also had a phone conversation with a property manager today to see what management might look like if I bought a small apartment building so as we spoke they told me that investors from BC and Ontario are...

Good morning everybody. I'm just confused about something and need the experts opinion. I've never bought apartment buildings but from my research apparently the long term growth in price happens through two ways if I'm not mistaken. One is to buy an undervalued building and renovate it to...

In the case of a joint venture in a big syndication on an apartment building where investors don't qualify for a mortgage and just have shares in the venture are the risks similar to a single house venture mentioned in your example above?

Just curious about this staging thing like apparently it's good for the seller but what about the buyer? If I was buying doesn't this mean I would be buying something with a some defects that have been masked by some cheap staging work and that with time those defects will start to appear and...

In the links I could read about joint ventures and came across the risks associated with it. In one of the risks it says minimum ROI is not guaranteed which I understand. But There's another risk that confused me a little bit. The one that says the return of capital is not guaranteed and here...

Even on the main floor? You mean it's better to have 2 bedrooms down and 2 up or 2 down and 3 up?

I don't mean a boom to happen soon. I think at least a few years or even more like could be 5 or even more years just to take off in somehow a significant way because even though oi price is up I know many global oil companies left Alberta and not coming back anytime soon. Besides if we...

Why you wanna sell at all? Edmonton is coming out of recession and heading into a boom in a few years. Keep your house and enjoy the boom.

I asked two realtors in Calgary who dealt with suite addition if the value will increase if you resell and they both said no it will be 1 to 1 value add. When I asked them what they meant by 1 to 1 they said if it costs you 50 k to add a suite the whole house will increase by 50 k only...

What about a fourplex or an eightplex? Would you rather have one fourplex if legal or 2 suited houses instead? Or one eightplex or 4 suited houses instead? I'm assuming they will all be handed over to a property manager.

Matt, by 15% you mean the manager's fees plus maintenance and vacancy or you mean just the manager's fees to lease the property and follow up?

Hi Keith. I have asked all the mortgage brokers I've seen at the banks about just one particular thing so my question to them was the following: if I am approved today and buy a property but at the end of the 5 year term if I am unemployed but everything else is good will you renew my mortgage...

Thank you Thomas and Cory for the replies and advice.