My Real Estate Holdings. THE RIGHT WAY TO INVEST IN REAL ESTATE. INVESTING FOR CASHFLOW

Hello Fellow Steemers,

Today I would like to talk a bit about my Real Estate Investment Life and How I found good deals. When most folks invest in real estate they tend to think of buying and selling properties like houses usually or sometimes duplexes.

That's fine and Dandy, however it can be very high risk/ low reward setup, if you don't know what you are doing you can massive losses. Especially during a bubble like we see in Toronto Canada ATM.

https://steemit.com/money/@sheldonassad/canada-s-banking-system-about-to-crash-heads-up-canucks

The Problem with buying and selling for profits is your looking for One of Two things. Your looking for a cheap fixer upper in a good neighborhood and hope you can sell it for more after the renos. Renos are a like a box of chocolates, you never know what you are gonna get. Could be straight forward or you can find a huge headache and bill you were not counting on. If your into Buying and Selling my suggestion is look for only light renos with nothing opening up any walls. Because then the building code comes into effect basically. If your not up to code you loose your grandfather status when buying the building, if you go and open up the walls.

The second thing is Hoping for the Greater fool, by buying and hoping someone else comes along and pays more for it a few months down the line. Very bad strategy in my opinion. Only works in bull markets, very competitive atmosphere, very little if any deals. General rule of thumb before you buy property is to make sure that when you buy it, you made money when you bought it. Lowers your Risk alot.

WHat is the Lowest Risk/High Reward option? Investing for cashflow.

Below is my first property I ever bought. Cement foundation 4 plex. 80,000. Closed 2013. Positive Cashflow avg 1149.
Forced Air heating. Seperate meters.

Not the prettiest on the outside but a lot nicer inside. Still can reno it up abit with new flooring and siding. Also have the option to pressure wash the wooden siding and repaint it. Also new roof.

Below is my Second property I bought is on a Main street Location in 2015 with the proceeds from the first building. Almost nothing to do in this one.

Purchase price 80,000, Electric heat sadly. 4 unit. Avg Positive Cashflow 967 a month. seperate meters

This one can be renoed to have a Boiler System for around 10grand. It's a good expense since it will pay itself off. This way the tenant can stop paying electric heat, and I the one all inclusive Heat i pay will be cut in half. It Lowers my expenses and at the same time gives me new room to start increasing rents. I have a beautiful two bedroom in there but only get 485, I can get 650 or more at least. IT's the hydro to heat it in the winter is like 550 bucks. Gotta play fair. When that is done i expect my Monthly Positive Cashflow to go up around 12-1300 a month.

I have Lost all the pics for inside this Building. Hadn't had to get any new renters in it since i bought it. All Laminate flooring and drywall.

Below is my latest property I bought last year 2016. Purchase Price 55,000. 3 Plex. Avg Positive Cashflow is 1200. Boiler System. Each unit is a whole floor. This building has wood Paneling in it. We just painted the paneling and put in a new floor downstairs and it filled up right away. With good paying tenants. It was also nice to have the Local Beer store a block away when doing the Renos last summer, got very Thirsty. This is a good example of light renos. Still took like 200 man hours. Needs siding repainted, new roof and new flooring upstairs but it is currently filled so whatever.

Also no inside Pics for this one.

There you have it. It's not the biggest Real estate portfolio yet but it makes money every month consistently and provides funds for more investments. All my buildings are in geraldton, and yes i have to manage them myself. However when done right, not many problems arise. Most common is water taps, pipes, or tanks leaking. That is about the Worst thing that happens. So you must make sure your properties make MOOLA or else you will have to PAYOOLA out of your own pocket and that's not why we invest.

The above properties I would on private sales and negotiable about 20 % asking price on each one, Building one and Two were asking 100,000 each and building three was asking 65,000. It pays to low ball. Another reason for Investing in my Local Town is that in the next year or so we should hear a Mine announcement with the gold miner finding 9 million ounces at the old mine. So that would be a big Plus for me if that were to happen. Get them appraised and use the equity to buy a big building with lots of flow somewhere else that i can get a professional property manager. Hoping to see a real estate crash to tell you the truth. It won't affect me that much since i don't care if my buildings go down in price. I still make money off them. If deflation or inflation hits hard, i will have to adjust my prices according to the situation.

I would like to Invest in Puerto Rico Soon since they are in the process of basically going Bankrupt. THey have F-ALL for taxes and you can get American citizenship apparently, but be on a whole different tax system. However we will have to see what Happens with It's Bankruptcy first. Colombia is also on my list. Canada is in too much bubble territory ATM unless you live in Geraldton. However, even our property values started climbing last year because of the Mine buying about 30 houses at the town site where they are suppose to put the mill.

Yes The ROI (Return on Investment) on my properties is very good, almost too good to be true. But i A sure you that accurate information I gave above.

In CONCLUSION

When looking to invest into Real Estate remember when investing for Capital Gains that is more of a SPECULATOR Game. More less gambling. What i do is invest for Cashflow and figure out the ROI. If you don't get 8-10% back for year it's probably not worth your time. It depends on the Cashflow and situation though. This prevents your from over paying by figuring out the ROI.

When you have good cashflow even if the property looks like crap on the outside, as long as it's liveable in the inside and maybe with a couple of optional upgrades. You can reinvest the profits, to get more cashflow with higher rents or find something else to invest in. Positive Cashflow is an absolute must in my Opinion. You never know might happen to your investments. Having enough Cashflow lowers risk Substantially since you are not paying for any damages, fixes or renos. Your Tenants are. Always take a Tenant complaint serious. And try to resolve to issue ASAP. Also Positive Cashflow is the fastest way to retire. Who need a pension when you got Positive cashflow from other assets. Don't depend on the Government.

That's Some of my tips for looking Positive Cashflow Real Estate Property. Canada has a bad system for taxing real Estate, but that is another issue for another day.

Until Next TIme,

IT's a STEEMOLUTION.