MR Landlords: Good type of first property to buy? Tips for newcomers?

Matt_mg

Matt_mg

Well-known member
My brother and I are looking to buy a building later this year, one of us will probably live in one of the units.

Stuff like precise location and budget is to be established since we're both switching jobs soon but I would appreciate tips / recommendations to learn more.

Is the Club immobilier du Québec worth anything? Seems to me I'm probably better off finding a mentor on my own...
 
Large building with many units get a management company to handle day to day affairs. They generally charge a %

Triplex , 4 Plex. Try to find something that already has Tennant's that have been there for a bit.
 
budget? where?

theses 2 questions will tell you what type of building you can buy with your budget and cashdown.
 
OPBX said:
budget? where?

theses 2 questions will tell you what type of building you can buy with your budget and cashdown.
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tips:

le plus gros possible
le plus de revenue possible
le moins de dépense possible
le plus récent possible
le meilleur spot possible (train, métro, future station = chance de hausse de valeur)
le meilleur quartier possible
le plus proche de chez vous possible

part avec ca et essaie de remplir le plus de catégorie possible lol

autre tips: construit une résidence pour personnes âgées, j'ai entendu dire qu'il y avais une couple de $$ a faire avec ça...
 
Buy with zero cashdown!!

Club Immobilier Quebec is good for contacts. It's been a while I didn't go, but there is monthly events its like 20$ you get the feels of it and lots of people with same mindset/projects/networking. You can just show up, no subscription. I believe they are good source... PS - it's in French, but I think you do speak French.

Location is the most important one :
- near metro/bus
- near groceries/malls/park
- near school/hospitals
- area you think the city will develop in the future (centre sportif, malls, trains, metro, park, etc.)
- area with less crimes (MTL north and Hochelagua are cheap for a good reason) Realtor.ca check commercial section for Multi Family.
https://www.realtor.ca/Commercial/index.aspx I like to search on the map.

Tenant :
- always be nice to tenants (they pay you big money over the years)
- it's sad but true, some nationality are more difficult than others
- always credit check
- criminal record check
- regie du logement check and more..
All at one spot one shot for about 40$ at http://www.oligny-thibodeau.com/en/pre_rental_inquiry.php (answer same day if sent in the morning)

Buildings :
- go the biggest possible (the more units)
- always do inspection before buying
- negotiate and try to look for an owner that really need to sell or too old to maintain or any sign that help you out for a better deal
- shop for your insurance
- do your own repair as much as possible, hire a pro when needed.

Banks :
- find one that can finance you 100% (not easy but possible!)
- do you calculation, make sure it pays for everything (mortgage, city tax, school tax, insurance, grass maintenance, snow removal, hydro, etc.)
- when you sign, make sure it's at the END of the month or ask them to start withdraw mortgage at the END of the month. This will buy you time if tenants start giving you hard time.
- have a good accountant (many legal ways to save on income tax)
- Ask tenants to pay you over Interac (or anything similar like email transfer) so you don't have to see their face each month :p

Other :
- read books/google/youtube about it (not everyone can be a landlord) *youtube is mostly in USA not same rules and regulations, but the ideas are the same
- not easy at the beginning but it pays in the end
- it suppose to be passive income, you're not suppose to work on it everyday
- keep learning, learn from your mistake and especially other's people mistake lol
- fun fact : my passion for investment started because of MR, now I give back!

That's about it in a nutshell...sorry I may miss a few things I just woke up...
Impossible? read it like this : I'm possible
As for the rest read my sig.
 
OPBX said:
budget? where?

theses 2 questions will tell you what type of building you can buy with your budget and cashdown.
Click to expand...

I'm before the "where" stage; I might stay in Montreal I might not; if I get a job DT I might not want to stay on the orange line.

Personally I like places like Ahuntsic and Verdun but Verdun looks over-priced, maybe it's because I'm a noob.


As for the budget it's also TBD since we're getting the saddest money possible: life insurance payout...



Lots of grey areas, lots of things to learn...
 
Matt_mg said:
I'm before the "where" stage; I might stay in Montreal I might not; if I get a job DT I might not want to stay on the orange line.

Personally I like places like Ahuntsic and Verdun but Verdun looks over-priced, maybe it's because I'm a noob.


As for the budget it's also TBD since we're getting the saddest money possible: life insurance payout...



Lots of grey areas, lots of things to learn...
Click to expand...

But you're doing the best with it.

If you plan on living and looking for something nice, I would guess you're looking for a 3-4plex that you could turn one unit into something nice for you.
 
My cousin got a 8 unit walkup, make sure you have an inspector look the place over, check to see how often tenants move, get the previous books to your accountant. It would not hurt either to knock on a couple of doors and ask the tenants if they have any issues.
 
SolTNutz said:
My cousin got a 8 unit walkup, make sure you have an inspector look the place over, check to see how often tenants move, get the previous books to your accountant. It would not hurt either to knock on a couple of doors and ask the tenants if they have any issues.
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Exactly.

You are investing 1M$, do your due diligence properly and don't be shy to ask around and seek help.
 
There is no stupid question when you want to learn!
I don't knock on doors, but I used to drive around the area alot (night/day) and walk during the day and ask people I see walking about the neighborhood/rent/bad spot/good stuff around. Chitchat! I tell them, I would like to move in this area and ask about it.
 
Dibbs said:
so what bank is willing to finance 100% of your property?
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Desjardins does it (ok not a ''real'' bank, but any financial institution that can help you do it go for it)

Of course it's not easy to do and you need to provide them collateral to cover their ass, but they want your business too. Win-Win

''As long as the outcome is income'' - Drake
 
P_KK said:
Desjardins does it (ok not a ''real'' bank, but any financial institution that can help you do it go for it)

Of course it's not easy to do and you need to provide them collateral to cover their ass, but they want your business too. Win-Win

''As long as the outcome is income'' - Drake
Click to expand...
So I can walk into a Desjardins bank and say " wassup I would like to buy a 1m Plex with 0 cash" and they will not laugh at me?
 
Discovery said:
So I can walk into a Desjardins bank and say " wassup I would like to buy a 1m Plex with 0 cash" and they will not laugh at me?
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Im pretty sure you need to cash collateralize a portion of the mortgage which ends up being the same as putting a cash down but you can earn interest on your collateral.
 
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