- Joined
- Aug 26, 2010
- Messages
- 380
Ok. Since I raised it here goes:
Market overview: I target a small town maritime environment with a large employer that has been there 10 + years and which has a good funding/business future (military bases/large factories). Typically these places are completely off the radar screen of anyone else except for locals. They're a great market though because they have most of the list of positive factors for RE investing, sometime an amazing number of the requirements, and due to the low competition and low prices these deals can result in amazing cashflow.
There must be lots of places like this in Ontario. If you can find them in 900 000 person Nova Scotia which is dying in most rural areas they're everywhere.
If we used stock market terms, I'm a deep value investor hunting for globally underpriced cashflow dividend yield stocks. The best cashflow is found in the maritimes so far as I can tell.
That's the market.
I won't do a deal with less than 10 % cash on cash yield, unless I"m getting all my money back within one year on refi. Both of the other full time investors I've worked with along with myself have never had less than a 100 % year 1 return across about 15 deals. When you dial in your niche the cashflow is very high here.
Biggest current deal is an 18 unit mostly rehab oceanfront project we closed on a couple months ago that should end with units renting for about 1K/month. Bought for 1.125 mill with a 500 K (underestimated) construction budget and an estimated refi value of 2.2 mill. The Montrose broker says he can get an 85 % cmhc valuation (which only remain in the Maritimes - straight from the head CMHC multifamily underwriter out here) and I've had 85 % valuations here as well so we should get all out capital back in one year once the friggin! construction is done. One other good thing about being out here is there is a lot of labour looking for work. And surprisingly pro landlord legislation that just got even easier. I've given out 180 $ rent increases on day of closing. There's very few such places in Canada.
If I was to pick one spot in Canada to pursue real estate investing it would be Nova Scotia or Newfoundland 3 years ago IF cashflow was the key criteria. You will make as much in other parts of Canada but it will be through appreciation not cashflow. OTOH freedom is my core value and we make about 6-7K/month off 35 units, good enough for two adults and three kids. One good deal here really can set you free... but every serious investor probably feels this way about their particular niche.
Market overview: I target a small town maritime environment with a large employer that has been there 10 + years and which has a good funding/business future (military bases/large factories). Typically these places are completely off the radar screen of anyone else except for locals. They're a great market though because they have most of the list of positive factors for RE investing, sometime an amazing number of the requirements, and due to the low competition and low prices these deals can result in amazing cashflow.
There must be lots of places like this in Ontario. If you can find them in 900 000 person Nova Scotia which is dying in most rural areas they're everywhere.
If we used stock market terms, I'm a deep value investor hunting for globally underpriced cashflow dividend yield stocks. The best cashflow is found in the maritimes so far as I can tell.
That's the market.
I won't do a deal with less than 10 % cash on cash yield, unless I"m getting all my money back within one year on refi. Both of the other full time investors I've worked with along with myself have never had less than a 100 % year 1 return across about 15 deals. When you dial in your niche the cashflow is very high here.
Biggest current deal is an 18 unit mostly rehab oceanfront project we closed on a couple months ago that should end with units renting for about 1K/month. Bought for 1.125 mill with a 500 K (underestimated) construction budget and an estimated refi value of 2.2 mill. The Montrose broker says he can get an 85 % cmhc valuation (which only remain in the Maritimes - straight from the head CMHC multifamily underwriter out here) and I've had 85 % valuations here as well so we should get all out capital back in one year once the friggin! construction is done. One other good thing about being out here is there is a lot of labour looking for work. And surprisingly pro landlord legislation that just got even easier. I've given out 180 $ rent increases on day of closing. There's very few such places in Canada.
If I was to pick one spot in Canada to pursue real estate investing it would be Nova Scotia or Newfoundland 3 years ago IF cashflow was the key criteria. You will make as much in other parts of Canada but it will be through appreciation not cashflow. OTOH freedom is my core value and we make about 6-7K/month off 35 units, good enough for two adults and three kids. One good deal here really can set you free... but every serious investor probably feels this way about their particular niche.