- Joined
- Feb 2, 2008
- Messages
- 2
Hello all!
I am new to REIN and very pleased to make everyone`s aquaintance. I currently own an investment property in Clearwater BC and am exploring options as to how to minimize my risk in such a small town. Any feedback or suggestions would be much appreciated.
Clearwater is approx. 1 1/2 hours north of Kamloops, has a population of about 8000, and it`s main economic source is the forest industry. There is a Canfor sawmill just north of town that supports most of the forestry activity. The area has been lucky with pine beetle infestation, the damage has been much smaller that neighboring areas and the forest harvest is still reasonably healthy. My biggest concern however is that the sawmill that supports the town`s industry may downsize considerably or shut down completely although they have not announced plans to do this yet. I know that Canfor is in economic trouble due to the slumping US dollar, the mortgage problem down south and the forecast of a limited amount of housing starts in the states. I heard on the news recently that Canfor is closing a mill in Chetwynd and I am worried that Clearwater may be on the chopping block.
The property is 1800 sq` house on 1.7 acres. It is currently rented out for a small positive cashflow but the tenant is leaving in May. My assessed value in the last year jumped by an amazing 63%!! That value may not hold however if the mill closes.
I see 3 possible options:
1. I sell the house outright and walk away. The problem with that is the house has had additions over the years that were not done to code. The house is sturdy and safe in my opinion but a home inspector might not think so. It needs some renos but nothing structural. A grow-op was recently discovered there also and some wiring was altered.
2. Get a new tenant, raise the rent to market and hope the mill doesn`t close, or
3. Carry the mortgage and sell to a buyer that is happy with the general condition of the place. This is the option I have been considering the most as I can ask for a decent down payment, charge whatever interest rate I like and generate a signicant positive cash flow for 10 - 15 years or more for myself. (The mortgage that is left on it is small.) I will need a good lawyer to set up the deal and there will be some costs involved but I could get the buyer to pay them. This way I can get a good price and protect myself from the volatile market. If the buyers don`t make the payments I will foreclose and sell to another.
Sorry the post is so long, I wanted to include as much info as I could. Any advice or opinions would be welcome. Thanks in advance!
Lorne Fitzsimmons
I am new to REIN and very pleased to make everyone`s aquaintance. I currently own an investment property in Clearwater BC and am exploring options as to how to minimize my risk in such a small town. Any feedback or suggestions would be much appreciated.
Clearwater is approx. 1 1/2 hours north of Kamloops, has a population of about 8000, and it`s main economic source is the forest industry. There is a Canfor sawmill just north of town that supports most of the forestry activity. The area has been lucky with pine beetle infestation, the damage has been much smaller that neighboring areas and the forest harvest is still reasonably healthy. My biggest concern however is that the sawmill that supports the town`s industry may downsize considerably or shut down completely although they have not announced plans to do this yet. I know that Canfor is in economic trouble due to the slumping US dollar, the mortgage problem down south and the forecast of a limited amount of housing starts in the states. I heard on the news recently that Canfor is closing a mill in Chetwynd and I am worried that Clearwater may be on the chopping block.
The property is 1800 sq` house on 1.7 acres. It is currently rented out for a small positive cashflow but the tenant is leaving in May. My assessed value in the last year jumped by an amazing 63%!! That value may not hold however if the mill closes.
I see 3 possible options:
1. I sell the house outright and walk away. The problem with that is the house has had additions over the years that were not done to code. The house is sturdy and safe in my opinion but a home inspector might not think so. It needs some renos but nothing structural. A grow-op was recently discovered there also and some wiring was altered.
2. Get a new tenant, raise the rent to market and hope the mill doesn`t close, or
3. Carry the mortgage and sell to a buyer that is happy with the general condition of the place. This is the option I have been considering the most as I can ask for a decent down payment, charge whatever interest rate I like and generate a signicant positive cash flow for 10 - 15 years or more for myself. (The mortgage that is left on it is small.) I will need a good lawyer to set up the deal and there will be some costs involved but I could get the buyer to pay them. This way I can get a good price and protect myself from the volatile market. If the buyers don`t make the payments I will foreclose and sell to another.
Sorry the post is so long, I wanted to include as much info as I could. Any advice or opinions would be welcome. Thanks in advance!
Lorne Fitzsimmons
