Ontario renting laws ARE too weak

[kcowan]

Just be careful to get enough damage deposit. We had a lovely Persian family across the hall from us rent another penthouse. It was newly renovated. After one year, the hardwood floors and walls had to be redone be when they moved out. They allowed their kids to do whatever they wanted.

[Sherlock]

I wonder why anyone would choose to be a landlord when you can make more money with much less hassle/risk in the markets?

[Dmoney]

There are still opportunities for double-digit un-levered cash flows, add in leverage and 20%+ annuallized returns aren't unheard of. Sure, it can be done in the markets as well, but sometimes the hands-on investment approach results in fantastic results.

[Causalien]

Diversification and a poor man's option leverage strategy that pays you to hold it. It is the exact same deal as GS when they held the other side of the synthetic MBS. Except of a perpetual income that self sustains and pays you when things fall, it is a perpetual income that self sustains and pays you when things rise.

This is why I love discussing ideas on this forum. Through just throwing out stupid ideas I often realizes insane money making strategies. Buy house + sell MBS of equal value = interest income on both side while protected against any directional movement.

[Berubeland]

I wonder why anyone would choose to be a landlord when you can make more money with much less hassle/risk in the markets?

It depends on what floats your boat and what you're good at. Don't forget there's plenty of people who lose money in the markets as well, last I checked there's no shortage of people willing to take advantage of "fools"

The real estate market has been good to specuvestors for the last 10 years. The money's not in the rent you collect but in the house prices going up. Until a few years ago investors didn't even need any skin in the game...0% down id pretty hard to beat.

[canabiz]

Speaking of good tenants.

I personally am leaning towards renting out to new immigrants only. I don't know about others, but I've never had any problems with immigrants. My guess is because 1: they don't know the law, hence less likely to become the tenant from hell. 2: When first landing in a new country, they are in need of good contacts, therefore will more likely to be pleasant. 3: some of them are from workaholic countries so money is usually not a problem.

Anyway, just in case, I want to see if anyone have had bad experience with new immigrants and what percentage of them are like that?

Causalien: It also depends on the type of immigrants. Yes they are new to the country and may not know the laws but they do have a pretty good network support here in terms of community and students associations and can quickly pick up tips and tricks, especially in diverse areas like GTA.

My friend used to rent houses to international students but is no longer doing that as the students quickly realize they can move in together and save quite a bit of money, creating turnover, among other issues. A recent article here for your perusal

http://www.thestar.com/news/gta/arti...es-are-illegal

[Causalien]

Nah, students aren't my cup of tea. I am talking about adult professional immigrants who already has a job lined up.

I guess things also depends on the landlord. One of my startup friend gave me a word of wisdom: "Your network is the biggest contributing factor to the type of clients you get." A landlord focused solely on profit will most likely net you something like what the article has. I prefer high quality, low turn over and repeat customers.

[Rusty O'Toole]

I wonder why anyone would choose to be a landlord when you can make more money with much less hassle/risk in the markets?

You are overlooking the leverage. I got into real estate investing with essentially NO money. The first property I ever bought, was a nothing down deal in 1972, before any of the Nothing Down books and seminars were even written. I also used money borrowed from friends and relatives, they would happily loan money for real estate but the stock market, not a chance.

By the way all my investors did very well over the years and so did I.

Now that I have made my pile I want to get out of real estate and into the stock market. Become a totally useless parasite, sit on my duff with my feet up on the desk and let the spondulix roll in.

[kcowan]

Now that I have made my pile I want to get out of real estate and into the stock market. ..

What is your motivation? Is it too hard, too risky, or just too much like a job?

[chaudi]

Cowan you know you can't get damage deposits right? Maybe you can answer you own question...

BTW Folks, the tenant for Hell i hear has paid her rent! Let see if the Tostar picks up this story.