Buying Investment Property


Personal Advice For First Time Owners 

1Knowing Your Time Frame -  For any "small scale” investors..  ask yourself  whether you would like to hold on to a property for  several years or if you would like to flip it. For those interested in a quick flip, renovating a fixer-upper.. that is priced at less than market value.. might make sense. For those looking for something that will appreciate over time, it helps to choose neighborhoods on the upswing.

2- NEVER buy at retail market value. If you can’t get the home at a 10-20% discount to its current market value, don’t do the deal. You want to leave the closing table with that equity as either future profit or a cushion should you have to sell before your initially planned liquidation date

3- When buying a place always look at the last year of utilities and taxes before working on a deal.

4-When you're buying an apartment, you're paying per square foot, whether it's one bedroom or five. Renters, on the other hand, pay a premium for the number of bedrooms, regardless of their size. Look for smaller square footage for bedrooms: a small two-bedroom or three-bedroom unit. 

5.Experts say this can be quite common with first-time buyers. Check the emotions at the door and think with your head.

Always keep in mind the re-sale value of the home you want to purchase, and remember that in real estate it’s all about location, location, location.

6-The key to a successful rental is one that cash flows from the day it enters service. In order to do so, one must buy a house where mortgage and expenses are less than their rental income in an average market.

7-Talk to a Property Manager not just a Real Estate Agent. Top Property Managers know what type of places are renting out, where people are wanting to rent and what is in demand.


Property Management is key .. why?


8. Infrastructure Already in Place - Early on, you won’t have an office or policies or a staff — or anything else that property management companies generally have. But management companies will have all the leases, applications, notices of entry and other such documents, as well as screening procedures and knowledge of the landlord/tenant laws in your province (at least they should). They know what is happening in the area and are local.

9. Ability to Save Time - The more time you spend managing, the less time you have to look for other potential properties to buy or other business opportunities — and you lose out on time to simply enjoy life.

10. Opportunity to Outsource Headaches - Unfortunately, property management has a not-altogether undeserved reputation for producing a large number of headaches. It will require a thick skin to deal with angry tenants and severe maintenance problems. Most tenants are great people, but those won’t be the ones you hear from very often. Instead, the bad apples and discontents will eat up a substantial amount of your time and energy (and sanity). A Property Management Company will also know who are the good tenants and the ones that are not. 


coldlakerealestatebuyingrentals.jpg

Kelly Baker ACP
Kelly Baker ACP
Owner