What do you think?

[drpeprchick]

OK, here goes....looking for advice, critism, recommendations etc

My husband and I want to get into real estate investing east of the gta. We have owned several houses and are comfortable with the area. We have looked at 2 possible rental properties...

1) A 2-unit house (3 bed upper & 1 bed lower) price $240,000, property taxes $3500...estimated rents $1300 & $750 + utilities
2) A 4 bedroom townhouse price $130,000, property taxes $2000, condo fees $200/month (water & building insurance included)...estimated rent $1200 + utilities

We would be financing with 5% down over 35 years (hopefully at less than 3.5% 5 year fixed)

What does everyone think???

Thanks in advance

 

[Thomas Beyer]

assuming downstairs suite is illegal I'd go with the townhouse .. but both seem decent on first glance ..



did you do enough research on area's upside .. and on rents .. and if this price is a good deal or just average ?



also read this:





5 ways to make money http://myreinspace.com/public_forums/General_Discussion/61-3347-5_ways_to_make_money.html



How to get started http://myreinspace.com/public_forums/General_Discussion/61-4391-How_to_get_started_.html



LOC vs. mortgage: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-2302-What_is_better_a_mortgage_or_a_line-of-credit_.html



Are you too levered ? http://myreinspace.com/public_forums1/Real_Estate_Discussion/62-10823-When_are_you_too_levered_.html





Why a 95% down mortgage with 35 year amortization ? .. quite risky !



Also: You will not get a 3.5% mortgage (5 year fixed) most likely .. more like 4% ..

 

[Anonymous]

QUOTE (drpeprchick @ May 7 2009, 11:36 AM) OK, here goes....looking for advice, critism, recommendations etc

My husband and I want to get into real estate investing east of the gta. We have owned several houses and are comfortable with the area. We have looked at 2 possible rental properties...

1) A 2-unit house (3 bed upper & 1 bed lower) price $240,000, property taxes $3500...estimated rents $1300 & $750 + utilities
2) A 4 bedroom townhouse price $130,000, property taxes $2000, condo fees $200/month (water & building insurance included)...estimated rent $1200 + utilities

We would be financing with 5% down over 35 years (hopefully at less than 3.5% 5 year fixed)

What does everyone think???

Thanks in advance

Where in the East End?

I would suggest reviewing the top 10 towns in Ontario and the GTA transportation report.

With 5% down, you may be limiting your future investment opportunities. Peter Kinch has done a fantastic job defining the "sand box" rules to understand what effects each mortgage will have on your ability to purchase the next and the next, etc.

Also, 5%, agreed very risky

The 3 bedroom townhome for 130 is a great price given Durham can be as high as 185K for similar and 1300 rent.

If you are considering moving into the JV world, then plan the purchase to attract new investors. IE, a duplex, a condo, here, there everywhere... be strategic about your portfolio development.

Finally, Please check zoning and fire code on the basement unit in the duplex. More than likely not to code and not zoned.

Is anything tenanted? If so, get tenant acknowledgments in the P&S process.

good luck

 

[housingrental]

Other posts above are good. I`ll add I`d take the townhouse over duplex. Easier to rent / manage.