My goal when I started in REIN was to purchase a multiplex as my first investment, hearing that collecting more than one rent was financially prudent should you lose a tenant, as other rents will cover your costs. So, I purchased a triplex and have been on a learning curve like fellow REIN members about interresidential issues from levels of heating, to driveway clearning, to noise at late hours... small stuff but important to my tenants. Other than some minor repairs it runs itself with an occassional injection of peace keeping on my part.
Being a REIN member for just over a year, along the way at REIN meetings I speak with numerous other members to learn about their investment portfolio and ask questions about why they invested in particular properties and their learnings from it. Armed with this accumulated information, I decided I needed experience with renovating - to learn the costs, timelines, outside help needed etc and I wanted to try a single family home. Sure enough my next purchase was a 45 yr old foreclosure single family home that I determined needed updating and renovations to a level that would attract tenants at a particular rent level. I invested weeks of `vacation` time, evenings and weekends, hired a small handyman and set to work to learn, learn and learn some more. When the home was at its worst, holes in the floors and walls for upgraded plumbing and wiring, I answered a young couple`s ad on kijiji explaining to them just what I was creating with my property. They came by, I sold my vision, they had faith in my promises of what I was going to do.. and to date I have great tenants in a home that I would consider living in myself.
What I learned from this second purchase, is that I preferred the single family home property over the triplex, as like Carla, once it`s rented to great tenants, it runs itself with the occassional touch base management and you don`t get involved in interresidential issues which can be major time wasters. For my 3rd purchase I decided to purchase a single family home again but this time something newer ie less renovations. Also along the way, as I am learning the REIN processes, I have honed the area I want to purchase in and I`m becoming the expert I need to be in that area. Have had this 3rd property for a month - in the midst of some renovations, but no where near the extent of the 2nd purchase. As stated in other emails, the challenge with single family homes is that until it is rented you carry the whole expense load. I believe and practise the law of attraction, and have put out the exact type of tenant I want. Amazing how quickly this works. Part of my plan has also been to manage my properties on my own, again to get the experience I need before I hire a property manager somewhere down the road.
My strategy is to learn from my involvement as a REIN member, to listen and ask questions of those members more experienced than me, then to set into action investments I can learn from, which along the way helps me to build and refine my own investment strategies overtime.
Until you purchase your first property it`s all theory and book knowledge. Talk to many members, decide on your own plan for your first purchase, learn all you can from that one, then refine your next purchase strategy. Overtime you will develop what works for you. What we learn from REIN helps to eliminate many but not all hiccups along the way. Those kind of odds I can work with.
I find the more involved you are with all aspects of owning income properties, the more people cross your life`s journey and opportunities present themselves. Over the past month I have been presented with the opportunity for a private triplex deal with 100% VTB, interest only for 5 years, to be closed later this spring .... yet another learning opportunity. I like to complete working on one investment property before I move on to the next, as I also work full time outside of my income property business.
Take the plunge. It`s heart pounding, scary yet so exhilarating knowing you are in control of your future.
Kimberly
