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KW vs Barrie (Cash Flow)

S

SlimShady

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Between KW and Barrie Ont., which of the two areas has had the better chances of obtaining cash flowing properties and why?

Would like to hear from any successful investors about what they think.... and if this is a stupid question please let me know.



Shady.
 
It depends entirely on the property. However I do know a paralegal in Barrie that specializes in representing landlords at the LTB and she tells me that Barrie has a disproportionate number of bad tenants.
 
I guess this information too all depends how one does their screening of tenants..... but interesting to know that thanks for replying Greg.
 
As far as cashflow it does always have to do with the property right? But while you are looking for the right properties make sure you are keeping in tune with what is going on in the city.



Kitchener - Waterloo

- licensing requirement (in Waterloo)

- huge amount of student rentals (vacancy is higher this year than past years)

- 2 huge universities and 1 large college

- Technology triangle (steady educated workforce)

- New LRT being built (creation of jobs) (great transportation opportunity)

- Close proximity to Toronto

- Motorola interest



Barrie (I am not an expert on Barrie)

- New Laurentian University campus being opened

- Close proximity to Toronto



If someone else could add to these lists it would be great.



At the end of the day look at the properties that are available and run the numbers. I like to not only run the numbers on that specific properties but the whole area. That way I can decided if this is a one off or if this is a long term investment strategy.



Hope this helps.

Sam
 
Hi SlimShady (aka Eminem I suppose? :) )



I invest in both Barrie and Cambridge (so kinda KW)



It REALLY does depend on what properties you are buying.



But my question would be "what do YOU consider cash flow?"



I've asked this question to coaching clients and students hundreds of times and it's surprising how many can't answer the question with a definite answer.



When you're building your business, ensure you have the boundaries set in place. (ie: I will ONLY buy a house that has at least $100 in cash flow AFTER all expenses, vacancy rate, etc AND it was stress tested at 5% interest rate. Something like that)



To answer your direct question hopefully, in Barrie, I can cash flow 2-3 hundred right off the bat. I'm buying single family townhomes $225 and under. So I'm happy with these numbers.



Some may not think it's a lot of cash flow and that's ok because they need a different model.



In Cambridge, it's about the same, but the properties are a bit tougher to come by. In my experience however, Cambridge has a better upside at this point.



Which, again, should really NOT be part of your overall strategy because if you're only banking on appreciation, you're fighting a battle that you could easily lose.



Just my opinion.



My expert "coaching" advice? Clarify what you want first and why, and THEN go find the components. (read: the area, the property type and so on)



Hope that helps...



- Joey
 
If you invest in Barrie, I do not see how I cannot make money off of you.

I recommend you invest in Waterloo.
 
Hey SlimShady,



I'm an investor and realtor specializing with investors here in KWC buying single family properties. Like Joey said, it's really about figuring out WHAT you want your real estate to provide for you now, and in the long term.



If you want a "generic" breakdown, I'm finding my clients properties that will attract quality tenants that will cash flow from $50 - $200 a month after ALL budgeting i.e. 5% maintenance, 5% vacancy, property manager etc. I can pretty well find these properties every day of the week ;)



That's real general though. If you want a higher end tenant, you can expect a lower cash flow, but if that's what you're looking for, awesome. If you want a "regular" Joe tenant, you can expect upwards to $100-$200 a month. See what I mean? It all depends on what tenant profile you're looking for and what you're strategy is. It's not all about cash flow.



Hope that helps. If you ever want to chat about real estate, I'd be happy to help and hopefully give some clarity.



PS: If you're interested in single family properties, feel free to check out my free E-book :) - Single Family Investing Made Simple: How To Create Wealth and Reduce Daily Stress!. <---- Click
 
I specialize in Barrie and would disagree with BARRIE having a "disproportionate" number of tenants. This can be anywhere and in all honesty if Landlords do their diligence correctly and filter, then you'd have success. It also depends on what kind of tenant profile/clientele so, no offense, would say that's truly unfair to say and someone could be missing out on a great opportunity of investing here given this is an open forum based on that general comment.



Out of 180 properties that we manage would say there are 2 properties we have a challenge with at present - because of financial situations, unforeseen and out of their control. Not a bad percentage considering the inventory we hold. April Stewart, aka "Terminator", amazing paralegal sees her share of repeat and professional tenants for sure. It's important to note that she works all over Ontario and not just Barrie.



So, my observation - yes, as with anywhere location is key and what neighbourhoods - as anywhere. Tenant profile can be graded from A-F and what is risk tolerance. Depending on location may have to "chase" a bit more for rent and/or higher risk - lower credit scores.



Agree with Joe that it depends on what kind of cashflow you're looking for and also encumbrant on which location of Barrie you choose - market rent price, condition, purchase price. Fortunately, our unemployment rate is below the Provincial Standard and a lot of jobs coming here. We have a very "forward thinking" Council and Mayor. From experience and observation, a very progressive City.



Either way, much success in your search in whatever top town you choose to invest.
 
There will always be good and bad tenants in any city you decide to invest in.



I have learned in the past 8 years that becoming a specialist in not only a City, but in a specific location within a City is key. You learn to become the expert, as well as learn what works and what doesn't work in that area. Townhouses for example work really well in Barrie and KWC as Shannon and Mat were sharing earlier on. There are some areas that do well with multi family. Toronto and more specifically East Toronto near the Beaches and Leslieville have good opportunities with Duplexes and Triplexes.



So my recommendation is to become a geographical specialist and that way you will definitely know how to make money in your niche location.



All the best!
 
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