If cash flow is your priority in your real estate investments, you probably have considered many options. Such things as adding a suite, renting out the garage, or turning a portion of the yard into a parking may have been some options that you have considered.
You probably have tried to lower your expenses as well. This can be very effective in increasing your cash flow. Most owners look at reducing their utility costs as a primary means to reduce expenses. But, have you considered amortizing your mortgage over a longer period of time?
By extending the length of your mortgage over a longer period of time, you can increase your cash on cash return significantly. Consider the following example …
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Like many landlords, you are often faced with the predicament over raising the rent (because the market can support it) and losing some of your good tenants.
A good example is the rental market in Saskatoon at the moment. Housing here has been a hot commodity over the last few years and there have been a lot of condo conversions resulting in a shortage of rental properties.
A certain rental community in our city named McNab park is a good example. The majority of the tenants in this community are lower income families, with the average income just over half of the city of Saskatoon average. Basically for these people, any major rental rate increase will drive some of them …
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Now, when I hear the word diversify, I think mutual funds. I don’t know if there is any other word used so much as diversify in their industry. Diversification is a result of the old saying: “Don’t put all your eggs in one basket.” Now, where might you ask, does diversification fit into business opportunities.
Diversifying your portfolio of businesses, income properties, and websites helps you in a few ways. Some examples are:
- Protection from changing trends
If all your rental properties are located in a town whose workforce depends on a particular industry (for example lumber) and suddenly the demand for that product drops, people may lose jobs and move out of the area. This recently happened to a friend in …
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Sitting here tonight I realize one thing: I am not getting enough done in a day. The reason: no focus.
If you feel the same, you are not alone. I find one of the most challenging thing being an entrepreneur, you need to set targets or goals for your day and work towards them. Unlike a traditional job where someone gives you some tasks to do, you are on your own.
If you look at my past few days, you will see I have been a whirlwind of activity: creating content for websites, blog posting, contributing to forums, looking at investment properties, looking at websites to invest in, marketing, etc. If I would have had defined tasks or goals to …
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A booming market can present some interesting investing opportunities. If you are fortunate to have bought your home before the boom began, it has increased in value. This increase in value could allow you to purchase some investment property. Consider the following example:
Rob and Barb bought their house just a year ago, in Saskatoon. He put $10,000 down on a $70,000 home. After the first year, their remaining mortgage is $55,000. During the past year, they did some repairs to their home. Recently, their home was appraised at $90,000. If they sell their home, they would end up with $35,000 (not including fees and taxes due to the sale of their home). Looking in the real estate listings at mls.ca, they find a …
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Statistics released recently show that the average listing price of a house on the real estate market using the multiple listing service (on the web: mls.ca) is up 25% over last year. That makes Saskatoon the third highest gain in Canada, behind both Edmonton and Calgary.
To give you an idea of what this would mean as a return, consider this example:
Last February, you bought a home for $200,000 CDN, putting down a 25% down payment (that would be $50,000). In March of 2007, you turn around and sell the home for a 25% profit on your purchase price (that would be $250.000.) You would make $50,000 CDN profit (not included fees, taxes, etc.) giving you a whopping 100% …
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In this day and age, most people do not have enough time to do the dishes. When renovating a property that you are going to flip, add a dishwasher to the kitchen area to increase the value of the property. You do not need to spend a lot of money on the dishwasher (think $200 to $300), but it will add a few thousand dollars to the value of the home.
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When you are out looking at rental properties, be sure to look for hidden income opportunities that would make a good investment a great one. Some examples of these hidden gems are below.
- Garage
Most people assume that when they rent a house, the garage is part of the deal. What you should really be considering is renting the garage as a separate unit. Typically a garage can rent for $50 or more. Many people use garage rentals as a place to store vehicles in the winter, storage (as it is usually cheaper than self storage), a place to store their boat, etc. If you want to make sure that you have it rented all the time, get your tenant to …
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Some people consider real estate investing risky. Others consider it crazy. If you want to minimize your risk consider investing in multi-unit rental properties.
Why multi-unit rental properties?
1. Consistent rental income
If you are renting out a multi-unit building, chances are that at any given point it will not be completely vacant. Sure, some of the units may have no tenants, but you will still be getting rental income from some of the units. Compared to a single unit rental property (if you have no tenants, there is no rent collected) this should minimize the risk and the carrying costs should one of the units be empty. If you factored in some vacancy allowance into your …
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If you are looking for online resources to find homes for sale in Canada, or real estate for sale in Saskatoon (my home town), you should take a look at the following sites:
- Multiple listing service
Here you can find residential homes for sale in Canada. They show the price, some pictures, and also provide you with contact information regarding the realtor in charge of marketing the propery. It is a good place to start.
- Canadian Commercial Property Listings
Here you can find commercial real estate properties such as appartments, businesses, commercial buildings and office space. Just like MLS.ca, they provide some details, price, and contact information for the realtor of the property.
- Sask Houses
You can find homes for …
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