Investing in Quesnel BC

Terry Vermeer

New Forum Member
REIN Member
Mar 26, 2020
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Abbotsford, BC
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#1
Hello fellow REIN members!

Does anyone have any experience or thoughts on investing in Quesnel BC? It seems that there is a big need for rental properties there at the moment. Looks like the main industry is forestry. Is anyone investing there currently or have any experience investing there? Does anyone know what the main tenant profile looks like there?

Thanks,
Terry


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Martin1968

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Jan 22, 2017
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#3
Terry, when Thomas says, small towns, I would like to make the distinction between small towns, and small centers. Without knowing Quesnel, a quick look at the demographics tells you the town has just about 10.000 people and a further trading area of 13.000. Thats a good number. Does it have things like county services, hospitals, diversified school system and a decent economic base? Then you can’t go wrong.

Liquidity and Exit, yes Thomas is right, but if you have a long term buy an hold strategy, make sure your properties absolutely stand out, offer above the norm service to your tenants, and don’t be afraid to ask above the norm rent because of what your offering, you’ll make a killing on cashflow, tenants paying down your mtg, and wether your asset increases in value or not is a little less important.

Prop management in a town that size shouldn’t be to big of an issue, likely some local RE brokerages that offer that service. Best is to manage yourself but depending on proximity to where you live that might be a problem.

For me personally this investing strategy has done wonders.
 
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Thomas Beyer

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REIN Member
#4
Property mgmt is critical - as is not paying too much.

The main reason I opened a prop mgmt company in 2005 was that I couldn’t find a decent property management firm in a small centre (Camrose, AB).

Before you waive conditions on an asset that makes sense financially to you ask: “who is managing this property impeccably?” If you don’t know this answer don’t buy. This is absolutely vital.
 

Martin1968

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#5
Yes, to PM, and another thing to watch is cost for contracting out work to contractors in rural areas. Sometimes they hold some sort of monopoly in those centers, being the only, or the better game in town, charging accordingly especially to RE investors.

I have had these things happening a few times, worst case was a 160 ft wide and 6 ft high wood fence including a retaining wall (simple wooden structure) and got quoted a whopping $23000!
I had counted on about $13/14000 max.
Bought all material, Did all prep work , hired my usual guy that lives 2 hrs away and put him up in a hotel for 2 nights and total cost incl of hotel, few meals and some bonus beers was $7300!

These are true challenges that you would need to think about. Especially when you live away more then 2 to 3 hrs. Cheers!
 
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Terry Vermeer

New Forum Member
REIN Member
Mar 26, 2020
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Abbotsford, BC
terryvermeer.com
#7
Hi All,

Thank for very much for providing your input! I absolutely agree that good property management would be key as usual. I live in Abbotsford so would definitely be relaying on others for this service. Also great call on finding contractors. Quesnel was just one idea and I will keep your feedback in mind!

Thanks!
Terry


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