Real Estate/Financial Gurus: What to do?

portugz

portugz

New member
Here's a semi hypothetical situation:

Option A:
Duplex

$310 000
1x 6 1/2
1x Big 3 1/2
Possibility of converting 6 1/2 to a 4 1/2 & a 2 1/2
Built in 60s.
Fully renovated & updated interior.


I reside in 3 1/2.
Collect $1100 of rent/mo.

Option B:
Duplex

$340 000
1x 6 1/2
1x 2 1/2
Built in 2005


I have to reside in 6 1/2.
Collect $500 of rent/mo.



Long term goal, live there 2 years, buy another rental property, and so on. What is the smarter route to take?
 
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option A, but why would you want to convert the 6 1/2 when it as be renovated/updated ( You pay for that in the sale price ) Are both in the same sector ? Are both got the same type of land/driveway ?
 
L'option A semble en tout point de vu meilleur mais je suis pas un Gurus pour affirmer ça. C'est sur que les risques de problèmes sont plus présent d'une construction 2005 mais une bonne inspection pré achat devrait suffir.
 
Option A

Collect the most you can when you start and while you still can live in a small place.
Convert the 6 1/2 if you believe you can make more income and it's also worth it. (convert to have 100$ more per month is not worth it, u know)

Of course it depend on many other things, but IMO I will choose option A.

Also can I ask in what city those options are?
 
BassBoy19 said:
option A, but why would you want to convert the 6 1/2 when it as be renovated/updated ( You pay for that in the sale price ) Are both in the same sector ? Are both got the same type of land/driveway ?
Click to expand...

Same sector.
It used to be a Triplex. Previous owner converted it to a Duplex. Pretty annoying. Shouldn't cost that much to reconvert, plus can charge pretty much the same rent for the larger portion + $350-$400 for the 2 1/2.

I think the land is pretty much the same, but the more expensive one has longer drive way.
 
BassBoy19 said:
coté rentabilité, un duplex c'est rarement rentable versus des plus gros plex
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Bien sur, mais ca dépend aussi du budget. J'ai visité quelques Triplex(es?), et malheureusement, le revenue n'était jamais assez haut comparer à l'hypothèque. Ou c'était tout simplement des endroits jamais updatés... Donc de l'argent à investir.
 
P_K said:
Option A

Collect the most you can when you start and while you still can live in a small place.
Convert the 6 1/2 if you believe you can make more income and it's also worth it. (convert to have 100$ more per month is not worth it, u know)

Of course it depend on many other things, but IMO I will choose option A.

Also can I ask in what city those options are?
Click to expand...

I'm leaning hard for A.
Question is age vs revenue.

However revenue is a major factor. Actually, it's the main factor. It's not a place I love. It's a sacrifice for the future, a head decision and definitely not a heart decision. It's also a starting move for my next purchase, I wanna buy as many properties as possible before a kid comes along, and the clock is ticking. lol

It's in the south shore. A few factors keeping me out of montreal, namely budget although I've been very thorough and open for the past couple of months.
 
Tu ne seras pas en mesure d'acheter une autre propriété à après juste 2 ans à moins que le montant financé soit minime. Quand tu finances un duplex ou Triplex, la banque calcule toujours la moitié des revenus vs la totalité des depenses. En plus tu vas devoir mettre 20% de cash sur le 2e prêt à cause que c'est 100% locatif à moins de payer l'assurance schl.

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Twon said:
Tu ne seras pas en mesure d'acheter une autre propriété à après juste 2 ans à moins que le montant financé soit minime. Quand tu finances un duplex ou Triplex, la banque calcule toujours la moitié des revenus vs la totalité des depenses. En plus tu vas devoir mettre 20% de cash sur le 2e prêt à cause que c'est 100% locatif à moins de payer l'assurance schl.

Sent from my SM-T800 using Tapatalk
Click to expand...

20% je pense probablement me rendre en ce temps là.

Ma question est plutôt, dans le deuxième immeuble, je vais aussi déménager dedans pour être "propriétaire occupant". Ça marcheras tu ça?
 
The duplex-quadruplex market is absolute shit right now. You should only buy because you like the property.

If you're buying as an investment, you can't do math. Full serious. People asking 25x-30x income, your money will grow faster in a 3% savings account rather than most duplex-quadruplex purchases today.
 
very very few properties worth the investment right now. asking price is ridiculous, sometimes for stupid reasons. that being said, if you follow the market and have a good agent, you can still find a gem every now and then. and by gem I mean that you don't lose too much money at the end of the month, factoring in expenses, prevoyance, etc.
 
portugz said:
20% je pense probablement me rendre en ce temps là.

Ma question est plutôt, dans le deuxième immeuble, je vais aussi déménager dedans pour être "propriétaire occupant". Ça marcheras tu ça?
Click to expand...
Oui ça marche. Mais si tu penses générer des profits avec un duplex, j'ai une mauvaise nouvelle pour toi. A court terme oublie ça.

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^^ You have to be patient and look everyday to find the good one.

- Look for the NEED TO SELL FAST!!
- Look for the old lady that NEED to move out and she's alone and no rent cuz she can't manage it anymore.
- Look for the divorce ones.
- Don't buy if it doesn't pay at least by itself (a least kiff-kiff)
- Wait for it...

That's what I did, I was also lucky and also ''found a way'' to make it accepted by the bank (or caisse, ok yea it's not a bank blablabla) without tenants.
Now it's paid by itself and I barely go see the unit :)

OP, don't forget to NOT put any cashdown if possible!
To make money in real estate, you don't use your cash!
Location is VERY important!!
And always be nice to tenants :)
 
I should probably clarify. I'm leaving a condo. With option A, my monthly payments are a little more than halved.
 
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