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snowcannon
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I figured the easiest (maybe not the quickest) way to become mortgage-free is with a rental. Our area has a very low vacancy rate. Less than 1% I think.
Setting up rental "business"
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whitegold
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I have a few rentals and it works for me, but a few previous landlord references is a must before I would rent it to them, The house has to be a house with a suite, double the income, but what I find works best is that the first tenant pays for the whole house and they then become the landlord for the other half, that way the 2nd tenant is their problem. I find if I rent out both halves separately then the fights begin between the 2.
You need to have a substantial down payment so you can afford to do it. I take the whole cost of the mortgage and taxes and split it evenly to figure out what the rent should be. If you do get good tenant then I lower the rent slightly, even tho it will cost me to make up the balance, just as a reward for being a good tenant and keep them in there.
You need to have a substantial down payment so you can afford to do it. I take the whole cost of the mortgage and taxes and split it evenly to figure out what the rent should be. If you do get good tenant then I lower the rent slightly, even tho it will cost me to make up the balance, just as a reward for being a good tenant and keep them in there.
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- #23
A few tips to consider as well,
1) Keep an eve on the property, until your comfortable with the people living in the house. Ive done many consulting jobs in houses that people rented out to real nice families and they were all fake in the end. The house was turned in to a grow-op or Meth lab. Usually destroyed after, and if not is very pricey to repair, and with all the testing that Alberta Heath requires that can break a person. This is NOT covered by insurance, Insurance is for sudden and accidental losses.
2) If your purchasing a house for a rental or flipping purposes try to purchase a residence that is older than 1986. Asbestos is found in building materials in houses typically older than 1986. This is found in Drywall Joint Compound, Ceiling Texture, Sheet Linoleum Flooring, Vinyl floor tiles (not just the 9 x 9, the 12 x 12's as well), and many other surfaces. We do testing on many houses and houses in the 60's - 70's are worse, just about every house asbestos is identified, in the 80's its hit and miss. Asbestos was taken off the market in 1980 in Canada and it took several years to diminish the stock. This is found in sheet linoleum flooring up to 1990 as well, (the felt backing). So this can make or break you on a rental property as its pricey to have renovations completed.
1) Keep an eve on the property, until your comfortable with the people living in the house. Ive done many consulting jobs in houses that people rented out to real nice families and they were all fake in the end. The house was turned in to a grow-op or Meth lab. Usually destroyed after, and if not is very pricey to repair, and with all the testing that Alberta Heath requires that can break a person. This is NOT covered by insurance, Insurance is for sudden and accidental losses.
2) If your purchasing a house for a rental or flipping purposes try to purchase a residence that is older than 1986. Asbestos is found in building materials in houses typically older than 1986. This is found in Drywall Joint Compound, Ceiling Texture, Sheet Linoleum Flooring, Vinyl floor tiles (not just the 9 x 9, the 12 x 12's as well), and many other surfaces. We do testing on many houses and houses in the 60's - 70's are worse, just about every house asbestos is identified, in the 80's its hit and miss. Asbestos was taken off the market in 1980 in Canada and it took several years to diminish the stock. This is found in sheet linoleum flooring up to 1990 as well, (the felt backing). So this can make or break you on a rental property as its pricey to have renovations completed.
posnick
Active VIP Member
Ron, when i was running an abatement crew we would test up to 1995 as I found asbestos in drywall mud as new as 1992.
