# Rental Properties - Where to start



## Dan (Aug 14, 2012)

Hello All,

I've been looking into obtaining rental houses which I'd like to do full time instead of my current IT job.
I was looking into the possibility of creating a company which owns the properties and manages the renters/maintenance. This way I can get loans/grants/investments to get this business rolling.

Does anyone have experience doing anything like this? 
Any advice?

I've been looking into Zoning, by-laws, etc - all seem reasonable where I'm considering doing this. I plan to grow slowly while attempting to keep my current job until there is enough passive income coming in where I can work completely on expanding my company.

I'd appreciate any and all advise provided


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## mrcheap (Apr 4, 2009)

Hi Dan,

Your question is fairly broad, so I'll give you some general resources / advice.

First and foremost, I'd walk before you run and not get too focused on passive income and leaving your job. Real estate is fine as an investment, but it's unlikely to let you be retired and carefree in a few months (or years). If you wanted to work full time as a property manager, I'm certain you could do so, however the salary will probably be lower than what you're making in IT. I've never heard of anyone getting grants for real estate investments, and it's unlikely that many people will want to invest in your company when you're getting starts (loans are what I'd suggest focusing on). Managing the properties yourself is an excellent idea.

I think William Nickersons "How I Turned $1000 Into Five Million in Real Estate--In My Spare Time" is great if you can find a copy (it's out of print). I like most of what I've read from John T. Reed (http://johntreed.com), he's got many free articles to get a taste of his writing ahead of time (http://johntreed.com/rateseminars.html). You should read everything Rachelle has ever posted at http://landlordrescue.ca/ I wrote a series detailing getting my first investment in real estate at http://www.moneysmartsblog.com/getting-started-with-investment-real-estate/

DEFINITELY avoid any of the high price seminars and mentoring services. People may want to "partner" with you when you're looking for information about real estate and I'd suggest avoiding that as well (at least until you have a better understanding of the deal that's on the table). READ, READ, READ.

Unforunately for all this, I think you're getting started at a bad time for real estate. Things are over-priced in most markets in Canada (relative to their rent). A good general strategy might be to start reading and learning now, maybe manage someone else's property as a side business, and plan to start buying in a few years when prices are better.


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## Dan (Aug 14, 2012)

Thanks for the advise! Part of the problem: The area I'm looking at is very low on student rentals but the college/uni is growing very rapidly. This is bringing up property prices quite quickly over the last few years. a 800sq/f house which once sold for $60k is now worth $800k!? just because its beside the damn school... Theres still opportunities south of the college along the bus routes such as triplex's going for $250k which have interested me. 

I should also mention that I own a house in the neighbouring city - plenty left on that mortgage 

I plan to read read read  - I'll try to find a copy of that book


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## Spudd (Oct 11, 2011)

I just ran across this article and thought you would find it interesting (and scary).

http://news.nationalpost.com/2012/0...le-lived-rent-free-in-3600-a-month-apartment/


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## Dan (Aug 14, 2012)

*Wow...*



Spudd said:


> I just ran across this article and thought you would find it interesting (and scary).
> 
> http://news.nationalpost.com/2012/0...le-lived-rent-free-in-3600-a-month-apartment/


Thats insane... First and last are a must but that's crazy...


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## Berubeland (Sep 6, 2009)

I wrote about that case and even have the Divisional Court ruling for download at my site. Here's what you need to know 90% of tenants are good, 9% are bad, 0.9 are very bad, .01% of all tenants are like the ones featured in this article and are demon spawn. 

Learn to recognize the good one and stay as far away as you can from the psychopaths. 

Anyways here is the link to the article...http://landlordrescue.ca/bad-landlords/ <That's an unfortunate shortening of the title. 

Cheers...


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