Saturday, 23 January 2016

Bungalow to Duplex! Now for the inspection!

Back of house with basement entry

We became real estate investors in 2009. Since then we have slowly grown our portfolio to 3 units. Until this time we have always looked at small nice single family homes. This is where we step into what will hopefully be a more lucrative type of investment and we explained that in our last post Bungalow to Duplex!

Putting in the offer

We put our max offer and our agent presented it this way. The offer was not accepted and they countered $10K below the asking price so we decided to walk on 13 Jan. On 15 Jan the sellers agent asked us if we would consider submitting the offer again because the seller (the bank because it is power of sale) would like to review it again. So in went the offer with the only change being the possession date due to the quick closing. After a non-revocable period of 48 hrs and it being a bank they signed back on the 19th of Jan and we agreed on the 20th.

Awaiting the Inspection

Now that the bungalow is conditional we are getting our ducks in a row and finding a good architect/designer for the basement apartment and a contractor to oversee the renos. I had originally planned to do a lot of the work myself but considering I work full time and would only have the evenings and weekends for this reno and after figuring out what it would cost a month to have the property empty or at least partially, we decided on a contractor. If there is an opportunity for me to get in there and get dirty I will still take it but for now I am leaving it up to the experts. The home inspection is booked and we look forward to meeting with our awesome inspector on the 24th of Jan and once we have completed that we will start planning for everything else so that we can be prepared for our 9 Feb possession date.

Stay tuned for more updates!

Do you have a story you want to tell, leave me a comment, I would love to hear about it!

Sunday, 17 January 2016

How I paid off my Mortgage (Post #3)

Here we go again!

In 2010 we sold our house in Edmonton for about $60,000 more than we originally paid for it but the real shock was that a new home close to work was going to cost us at least double of what we sold the last house for. That's right I said double! We bought a 2400 sq ft home in a great neighbourhood just north of Toronto. The location was amazing, it was only 20 mins from work had lots of amenities near by and had a great school zone as well. It also had a large amount of green space nearby, but as mentioned before the price was the problem. We were now in the most debt we had ever been in our lives. The purchase price for our new home was $735,000 and even though we had always concentrated on paying down our mortgage this put our new mortgage at over $400,000!

On top of this our second child was born right after we moved in.

If you build it...

Not willing to let a little financial insecurity get in our way we got back at it. The sweat equity was again put in. The back yard was a blank slate when we bought the home so we turned it into something more comfortable. The house had a lot of pink berber carpet that we replaced with a nice hardwood floor. We also completely gutted the en-suite bathroom for a major update adding a beautiful vanity, a new jet tub and a larger shower stall.

On the road again!

In 2012 we moved to the Barrie area and this is where the dream became a reality. We put our house on the market and sold it for $828,000. After only 2 years in one of the hottest housing markets in Canada we made $93,000 on our property. The next step is the most drastic as it involves us paying off our primary residence mortgage as well as buying a rental property almost at the same time.

See How I paid off my Mortgage (Post #4) for more or look back at how we made it this far with How I paid off my Mortgage post 1.

Monday, 11 January 2016

Bungalow to Duplex!


Ask almost any landlord out there and they will tell you it was accidental. If you want to continue this "lifestyle" one day you have to sit yourself down and make a decision, do you want to be remain an accidental landlord or do you want to get serious and try and generate income from rental income.

We bought a condo in 2009, a townhouse in 2012 and another townhouse in 2014. In future posts I will explain the properties in detail but one issue that we have is that we are barely cash flow positive on the properties. Well we finally decided to get real and determine how to generate some income! We found a Realtor that specializes in rental properties and that has a lot of contacts. We then immediately talked to a mortgage broker that also dealt with a lot of investors.

We have since restructured our finances in order to find our next property and this time it will not be an accident. We are now focusing on a 2 unit property or creating one with some sweat equity! We have put in an offer on a Power of Sale single family bungalow tonight. If our offer is accepted we intend to make it a legal duplex and generate income and hopefully passive appreciation. Stay with us on the journey!

Do you have a story you want to tell, leave me a comment, I would love to hear about it!