Real Estate Quotes

If you want the best money-saving mortgage, it often comes from a monoline lender. They offer the best exit and renewal terms. They get their business from one place only: mortgage brokers. Monoline lenders typically want prime properties or plum clients with a 700-plus credit score. If you can qualify for a monoline mortgage based on market fitness, your credit, income, and investment strategy, then you'll be better off. [2018] - Angela Calla

We always recommend you take the longest amortization possible, because the amortization doesn't actually dictate the duration of your mortgage payments; that duration is determined by how you set up your payments. If you have a long amortization, you can always revert back to the minimum payment. This helps you avoid accumulating outside debt, and you can qualify for something else if you need to. If you want to buy a rental, but you've just renewed your principal residence mortgage at 15 years, you won't qualify. But if you had your principal on a 30-year term, it would allow much more flexibility. [2018] - Angela Calla

If you are purchasing with 25% down payment vs. 20%, you may get a lower rate. 30% might get you a bit lower yet. The lowest insurable rates are usually available with 35% or greater down payment, however with some lenders you may need as much as 40%. Additional down payment beyond 35-40% will not get you a further discount on rate. [2018] - Paul Meredith

The cost of an uninsurable mortgage can be as much as 25 basis point (0.25%) higher than that of an insurable mortgage, or even higher. I've seen the difference as high as 50 basis points. [2018] - Paul Meredith

A 10 year fixed mortgage typically carries a rate of around 1% higher than the 5 year fixed. I do think that 10 year fixed terms are not the right choice for most people. It's because nobody expects to break their mortgage mid-term, but it happens all the time, and sometimes we are forced to. [2018] - Paul Meredith

Average household size is used to help determine the proper unit mix. If you lean that the average size is 3.7 persons per household, then pursuing a building with a mix of studio and one-bedroom apartments won't work. [2017] - Bryan M. Chavis

Mortgage interest rates help to evaluate and determine market cycles. If rates are at an all-time low, more people will be qualifying for mortgages and are therefore less likely to be in the rental market. When the money supply is tight and lenders are cautious and interest rates are high, that's when you're in the best position as a rental property owner. And when rates are low but lending standards are tight for the middle-income demographic, this demographic will typically be forced to rent. [2017] - Bryan M. Chavis

You have to think like your prospective tenants, and their needs may be different from your needs. Some of their needs may be: Close to highways and public transportation (bus lines, subways, etc.); Close to retail and shopping; Close to large employment centers. [2017] - Bryan M. Chavis

Rent must cover at least these items: mortgage payments, taxes, insurance, interest payments, estimated vacancy loss (at least 5 percent if you have more than one rental property), utilities provided by landlord, collection expenses, legal & accounting fees and advertising [2017] - Bryan M. Chavis

A landlord/property manager must not collect a deposit from more than one applicant at a time for the same rental unit. It is good practice to collect other applications for the same unit in case the first applicant does not qualify, but do not collect more than one deposit. [2017] - Bryan M. Chavis

I recommend raising rents at the end of each lease term. Even if only a few dollars, it gets your tenant accustomed to the rents being raised. You should bring the rents up to market rate at this time. To find out what market rents are in your area, do a market survey. Many find it helpful to use a tool such as Google or Rentometer. [2017] - Bryan M. Chavis

General rules of thumb regarding move-out procedure: Ordinarily you can charge for replacing ruined/stained/torn carpet, replacing chipped tile, replacing broken blinds/drapes, fixing damaged furniture, pest control for flea infestation, patching holes in walls, replacing broken doorknobs, replacing torn/missing window glass and cleaning for an excessively dirty kitchen/bathroom. You typically should not charge for replacement of an item that could be repaired. If a resident has lived in a residence for more than one year, the need for new paint is normal wear and tear and should not be charged for. [2017] - Bryan M. Chavis

There are four ways to profit from real estate. The first is mortgage pay-down. You can rely on your real estate investments to reliably pay down your mortgage. As the mortgage is paid down, your equity goes up. Second is cash flow. Once all of your property expenses have been paid, the money remaining is your cash flow. Third is appreciation. We have incredibly strong historical proof showing that the real estate market rises gently over time. Fourth is forced appreciation. Properties that are renovated to a certain modern standard earn more income. This could be cosmetic and, therefore, lead to higher-quality tenants desiring the property, or it could be structural and, therefore, change the use of the property (from one suite to two, for example). [2017] - Calum Ross

Multiplexes typically earn stronger cash flows, especially when they are purchased outside the downtown Toronto area. [2017] - Calum Ross

Renovations aren't a good fit for every investor or even most investors. Some investors, especially those later in their financial life cycle, would be dramatically better off purchasing a turnkey property - a property that's completely ready to rent, often with tenants already renting. [2017] - Calum Ross

In the worst-case scenario, you will want enough cash sitting in the bank to cover all the carrying costs of owning a real estate property for three to six months.  [2017] - Calum Ross

A good rule of thumb is to budge 10 percent of total income for property management, but it will depend on the property type and the area you live in. Ask your real estate agent about the correct numbers to budge for your property type and area. Also ask your real estate agent for property manager recommendations. A great agent will have trusted contacts in this area. [2017] - Calum Ross

Generally speaking, variable interest rate mortgages will save you money compared to fixed rate mortgages in the long run, but that at any given point in time you need to assess the risk-and-return trade-off of the two options. [2017] - Calum Ross

Always choose a real estate agent who is also invested; Always chooses a real estate agent with several years of experience (at least five to ten years in the business); Always get a recommendation before choosing a real estate agent. [2017] - Calum Ross

There are communities of investors in every major town across the country. There are multitudes of investment clubs, along with untold thousands of loose, unofficial networks of individuals meeting for coffee or beer. Every agent can look on the MLS, but only a deeply connected agent will be able to bring you deals before they hit the MLS and those rare gems that could only be pulled off by them. This is why getting recommendations from other investors is one of the best ways imaginable to select a real estate agent. [2017] - Calum Ross