First time investor in Hamilton

[Newby1983]

Hi everyone, I'm close to purchasing my first investment property and was hoping to pass some info by you experts. This is what I've done and plan on doing. Looking in downtown Hamilton and have an agent with investing experience. Spoke to my accountant about my plans and he understands my expectations.



1. Anyone know of a good lawyer in Hamilton/Burlington/Oakville/Mississauga who understands real estate investing?



2. I plan on putting down 10% cash and using my pre-approved HELOC for the balance. I plan on paying down the LOC as fast as possible (even with personal income). Some argue this is bad as the interest can be written off; however, I'd rather eliminate interest payment to the bank (costs more) and build equity in the house. If and when I do purchase my 2nd property, I'll have my LOC in place and can use the equity to increase it if needed.



3. I've identified a few pockets that are starting to gentrify in downtown Hamilton. I may be a little late but I'm sure there's still quite a bit of appreciation left in addition to cash flow. Anyone have suggestions as to what I should be looking for?



4. I'd like a single family home that needs some face lifting (flooring, kitchen cabinets, paint, landscaping). My only concern is I'd like to know how much it would cost to complete such upgrades BEFORE closing the deal. What would you suggest I do?



5. I will be using a property manager. However, at first I'd prefer to be more hands so I can learn how the property is managed. Are management companies ok with this or do they prefer no outside assistance?



Any other suggestions would be appreciated.



Thanks

 

[MrHamilton]

Hi Newby,



1. Here's the lawyer I use


Chris Argiropoulos


Hons. B.A., LL.B.


Partner





71 Main Street East


Hamilton, ON L8N 1G2


Tel: 905-388-0130


Fax: 905-574-4929


www.aflaw.ca


[email protected]



2. If you are consumer debt free and home is mortgage free, go ahead and pay down your HELOC.

3. if investing in century homes in downtown Hamilton, you should be looking out for insurance issues, fire code and zoning violations. A really good agent will know the signs.

4. Have your general contractor quote the project during the home inspection or if your agent is experienced with renovations, they should have a good handle on what similar projects costs.

5. If your work schedule is flexible and Hamilton isn't too far, go ahead and manage the property to start until it gets to be too much. Your local contractor/handyman can take calls for maintenance.



Hope that helps and good luck! I'm bullish on downtown. Been meaning to write a blog post on the subject...



Cheers,

Erwin

 

[invst4profit]

My advice would be to stay away from SFHs. They do not cash flow and are more financially demanding when vacancies or evictions occurs. My preference would be to purchase a multi of 3-4 units to insure cash flow during tough times.

 

[markl]

1. I can recommend a couple to you if you want to email me I will send you 3.



2. Your plan is your plan we all invest at a level we are comfortable with.



3. Since you're a cash buyer and you want to do some fix up you should determine how much work you want to do. SFH you won't have zoning or fire issues if you are not planning on turning it into a rooming house.



4. During your home inspection bring in a contractor or 2 and get a price quote from them. This should give you a good idea of costs moving forward.



5. Depends on the company if you would like include this on your email and I will send you the names of 5 companies and you can discuss with them your plan and see who most aligns with your goals.



And of course if you are looking for a great realtor I would be happy to help.



Regards,

 

[mflynn]

Single family homes in downtown Hamilton are difficult. Consider your tenant profile. I agree with Erwin. I'm bullish on downtown too, but perhaps consider a duplex. Fill both apartments with graduate students and you've got yourself a winning formula.

I do all kinds of property management including simple tenant selection and a la carte services. Mark is right, talk to a few and see who most closely aligns with your goals. I currently manage 6 of my own properties and an additional 8 for other investors. Not too big, not too small

I've worked with both Erwin and Mark before -- they know Hamilton! Get yourself connected to either one of them and I'd say you're on the road to success.

Good luck.

Mary

 

[EdRenkema]

I would echo the previous comments on SFHs, they are difficult to cash flow in good areas where prices are high.



But... that said I built my portfolio with Townhouse condos yes there are condo fees but the properties do make positive cash flow even if purchased with HELOC, hard to believe but TRUE, I had 8 of them at one time and most of them made me $300 clear per month. I know of several at this time that are available with tenants in place. I know when I have purchased with tenants in place it always works best - providing they are good, paying tenants since there are fewer upfront costs.

Feel free to drop me a line for any advice.

Hamilton has the best rent to purchase price anywhere I've seen...