5 Strategies to Generate Income as a Full-time Real Estate Investor

At some point in your journey as a real estate investor, you may develop the desire to quit your current job to pursue real estate investing full-time. 

It sounds exciting, right?  It is, but you’ll need to have a solid plan to replace your income before jumping ship!  Before you quit your full time job there are many questions to ask your self. You will have seen the countless TV programs on property "flipping" and how easy it all looks when the tradesmen are lining up on the Home and Garden Channel to work on the projects and you never really see the stress behind the job.

It may be that you have recently bought a property, done some renovations and "flipped it" and perhaps made your whole years salary in one flip! This would give you a great…

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Five tips for investing in rental property

Local real estate has proven to be an effective long-term wealth creator

By owning rental housing you get the added advantage of earning regular income from your investment.

Could stepping up now and getting into the rental property market be the right choice? If so, how can you help ensure it's a profitable venture?

Understand why you're buying

There are three main reasons people invest in rental property, and a lot depends on whether you're an investor or a speculator. If you're a speculator, timing is everything. When's the best time to invest in a rental property? Catch the market in an upswing and you might make money. But stretch your finances to buy in as the market peaks and you could lose. Do you want to bet on what housing…

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So You Want to be a Landlord

Becoming a landlord can seem very appealing. 

There is a large influx of people to BC, Alberta and Ontario and they all need a place to live.  But before you dive headfirst into this potentially lucrative pool, there are some things to consider. Aren’t there always?

Down Payment

You will need at least 20% of your own resources to put down.  That can be a lot of money.  On a $300,000 property you will need $60,000.  On top of this, you have the other costs to complete the purchase such as legal fees, title insurance and potential mortgage insurer fees.  Some lenders will still utilize the mortgage insurers to lessen their overall risk on a rental property and that cost is passed onto the purchaser.

Ongoing Costs

Being a Landlord is not a…

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Investing in a rental property: The pros and cons

There are a number of advantages and disadvantages to buying a property and then renting it out. Talk to an accountant, lawyer, mortgage broker or other financial expert about how it may affect your taxes and financial situation. As always use a great local Realtor to help you make the right decision in locating a property that would work for the purposes of renting out and making sure the zoning is correct.

3 key advantages

1. You pay less tax

You can deduct certain expenses from your income – reducing the taxes you owe. The list includes:

• mortgage interest
• property taxes
• insurance
• maintenance/upgrades
• property management
• utility bills (if you include them in the rent).

2. You may be able to deduct losses for tax…

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Advantages of Buying a Duplex, Triplex or Fourplex

There’s Strength in Numbers, Especially When It Comes To Making Mortgage Payments

So you’ve been renting for several years and you’ve worked your way into a sound financial situation. Time to buy a house, right? Absolutely. But the important question is: what kind of a house? After sharing buildings with other tenants you’ll probably be imagining moving your family into a snug little single dwelling castle of your own. However, that isn’t necessarily the wisest decision for everyone. Of course, there is something undeniably appealing about having a place all to yourself – but don’t forget to consider the charms of sheltering a tenant or two under your newly purchased roof. Buying a Duplex, Triplex or Fourplex can have a huge impact on your future as a…

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TD hikes mortgage rates for rental properties and lengthy loans

Toronto-Dominion is raising mortgage rates again

This time the lender is going much farther than its recent hikes.

Starting December 1, all fixed rate mortgages that take more than 25 years to pay back will cost borrowers an extra 10 basis points, or 0.1 per cent. TD is also implementing an extra cost for mortgages on rental properties, charging borrowers 25 basis points more.

The changes follow Royal Bank of Canada’s precedent-setting decision early in November to hike rates, and to also charge more for lengthy mortgages. The latter move marked the first time such a policy was implemented in Canada.

In response, TD increased its own fixed-mortgage rates a week later, but took a more measured approach. Royal Bank hiked its fixed five-year…

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Basement Living: Paying Off Your Mortgage Sooner by Renting Out the Main Floor of Your House

Are you looking to pay off you mortgage sooner? Buying a home with a basement apartment may be your ticket.

And while a lot of homeowners consider renting out a basement apartment, what’s stopping you from taking it a step further? What if instead of living upstairs and renting out the basement, you did the opposite: living in the basement and renting out the upstairs?

I know what you’re thinking: Why condemn myself to the basement when the main floor is available? I own this house, so why should I live downstairs?

First off, it’s a good way to subsidize your mortgage in high-priced Toronto and Vancouver housing markets. The rent from your tenants can go directly toward the mortgage, helping you burn your mortgage sooner.

3 Tips for Secondary…

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Investors: Here’s Why “Rental Owner” & “Landlord” Are Two VERY Different Roles

Is being a real estate investor and being a landlord the same thing?

Or are they two completely different roles? Knowing the distinctions is incredibly important and can make all the difference in getting what you really want out of real estate.

We are all more than aware of the need to invest. Owning rental properties is a way to invest in real estate and build wealth. But becoming a hands-on landlord can be distinctly different than pure investing for a number of very important reasons.

Being a hands-on landlord can be great. It can be therapeutic, rewarding, and a major upgrade from many people’s last job. Just make sure you know the difference BEFORE you get in. As we know, it’s always easy to get in than out.

A Mindset Difference

…

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10 things to consider for any real estate investment property

I often get asked how to invest in real estate and what should investors should be looking for in an income producing property.

It can be overwhelming for a first-time investor, as the real estate investment industry is riddled with various scenarios and situations that can decimate your returns. While the returns can be lucrative, proceed with caution.

Toronto realtor Matt Smith has shared with me his extensive experiences in helping investors both acquire and manage single-unit condominium investment properties. These are a very popular vehicle for investment in both Vancouver and Toronto, where both supply and demand for these units seems to be endless. In Toronto’s Downtown Bloor Yorkville area alone, there are currently eleven projects, all…

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How to choose a Kamloops income property

There are quite a number of variables to consider when purchasing a residential income property.

You’ll likely want to eventually engage with a real estate agent, but prior to doing so it is important to conduct as much research as possible. Remember to approach the purchase with an unbiased attitude and evaluate your options based on factual information.
 
Here’s a look at some of the top variables to consider when evaluating potential properties.
 
1. Economic outlook. Locations that are seeing employment growth will typically have more people moving to the area – this should also increase the potential renter pool. Conversely, locations that don’t offer as much employment opportunity or have/will see large employers leaving town, will often…

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