- Joined
- Aug 29, 2007
- Messages
- 2,042
QUOTE (Trizzy @ Apr 11 2010, 12:59 PM) I do realize these issues will occur, probably more than I am aware of.I intend on not using any of the cashflow the property provides for personal priorities. I fully intend on opening a new account and depositing every penny into it.
Therefor you anticipate having no positive cash flow/personal income from your investment.
I would need a quotation on how much it would cost to install 2 other hydro meters before I could ever consider doing this. How do you track tenants use of utilities?
You can not track tenant personal use. You watch for abuses.
My rate is locked for a 5 year fixed term. After that, I will have to reconsider when I am up for renewal. That or have the rents increased over time to match the inevitably higher interest rates.
You need a better business plan than simply waiting for higher rates to happen. Rates will go up and unfortunately rents in Ontario do not even keep up with increased expenses unless you change tenants regularly which is an additional expense.
QUOTE (Trizzy @ Apr 11 2010, 01:01 PM) I will have to put a locked box on the thermostat and leave it on automatic, so they don`t play with it and run by bills up. Also, if the tenants leave, there is no utilities hydro being used.
And just a neat piece of info. Southern Ontario had an amazingly mild winter, all things considered.
With a lock box you can expect plenty of complaints from tenants. Those that are too hot will leave windows open all winter, those that are cold tend to bring in space heaters or leave ovens on all day with the oven door open.
Unfortunately seeing the problems and still going forward does not eliminate the problems. As a savvy investor if you want the property you negotiate the price down to where the deal works or walk away.
However in the examples you give I doubt the sellers will move much as they know some novice will come along and view both properties as a good purchase and jump.
Therefor you anticipate having no positive cash flow/personal income from your investment.
I would need a quotation on how much it would cost to install 2 other hydro meters before I could ever consider doing this. How do you track tenants use of utilities?
You can not track tenant personal use. You watch for abuses.
My rate is locked for a 5 year fixed term. After that, I will have to reconsider when I am up for renewal. That or have the rents increased over time to match the inevitably higher interest rates.
You need a better business plan than simply waiting for higher rates to happen. Rates will go up and unfortunately rents in Ontario do not even keep up with increased expenses unless you change tenants regularly which is an additional expense.
QUOTE (Trizzy @ Apr 11 2010, 01:01 PM) I will have to put a locked box on the thermostat and leave it on automatic, so they don`t play with it and run by bills up. Also, if the tenants leave, there is no utilities hydro being used.
And just a neat piece of info. Southern Ontario had an amazingly mild winter, all things considered.
With a lock box you can expect plenty of complaints from tenants. Those that are too hot will leave windows open all winter, those that are cold tend to bring in space heaters or leave ovens on all day with the oven door open.
Unfortunately seeing the problems and still going forward does not eliminate the problems. As a savvy investor if you want the property you negotiate the price down to where the deal works or walk away.
However in the examples you give I doubt the sellers will move much as they know some novice will come along and view both properties as a good purchase and jump.