# So, now I need some professional advice as well as advice as well as others.



## Ih8Money (Dec 3, 2015)

Things are nearly settled almost and I have the house under my control that my father -who died a few months ago /cancer- had left me.

Here's the thing.
I don't care to live in it as it's been awhile and some personal issues of my own in living in that house.

My options are simple, keep it, maintain it for another year, then sell and hope the idea of holding it onto another year may help its value.
Since I read that the rates may be kept the same up until 2018. 

It's only a few second walk to the subway line and it's been appraised for a very sizeable "chunk of change" so to speak.

One real to do agent cam by with his sales person and both suggested, to sell "as is", since more likely than not, it would be a tear down and rebuild.
The house is still in good shape and anyone can move in and live in it really.

Do I want the hassle of renting? All the stories I heard make me a bit apprehensive about renting. But making $1800 month is also enticing.
Not sure yet what to do yet.

So, let's hear it. What do you guys think?


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## BigMonkey (May 31, 2016)

Sorry for your loss.

I don't own a rental property, but from what I have heard and read. It seems like being a landlord can be difficult and is more so depending on the type of individuals your property is meant for. Since you mentioned that this is a tear down, it will likely attract the less than ideal tenants.

If you have some savings set aside, you could likely look into renovating the house and selling it some months down the road for a larger amount.

I don't know the real estate agent, but I would assume that this individual would be biased towards having you sell it as is now. Since this individual would likely get your business and benefit from commissions gained from the sale than to have you list with another agent at a later time.


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## Numbersman61 (Jan 26, 2015)

Ih8Money said:


> Things are nearly settled almost and I have the house under my control that my father -who died a few months ago /cancer- had left me.
> 
> Here's the thing.
> I don't care to live in it as it's been awhile and some personal issues of my own in living in that house.
> ...


Based on your previous posts, I expect that being a landlord is not the best course for you. I've tried it once and found that dealing with tenants and/or property managers just does not suit my personality. For the record, I've been a chartered accountant for over 50 years and was a senior officer and director of some fairly large corporations so I understand the world of business very well. 
My advice is to talk to a few real estate agents who have listings in the area of the property and ask for their views as to price and suggestions re improvements. Make sure you deal with a realtor who knows the area.


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## redsgomarching (Mar 6, 2016)

^ would get professional opinion of somebody who knows the area as suggested above. If renos are required or suggested to make the property more attractive, see if it is possible to take out equity from the house (assuming no mortgage here) and use that to do the renos rather than your own cash.


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## GreenAvenue (Dec 28, 2011)

Renting out a house doesn't necessarily mean hassle. I was painting a room in the house I wanted to sell and this guy came by. I had all the doors and windows open as it was summer. He walked in because he needed directions. We small talked about the house and I told him a similair story about the house: I wanted to sell it. Two days later this couple showed up and said they wanted to rent it. Being fed up with tenants I gave them 3 months, on a contract with a deposit and I told them the contract would simple end unless they turned out The Perfect Tennant. And they were. Never had any issues with them. I pay my taxes, I collect rent and it's well worth it. 
What I'm saying is: if you own the house and you can let it sit for a bit why not just look for the perfect tennant? In a different building I rent out the guy that rents it does the repairs in the building. He pays the rent minus the number of hours he worked. Works for me, the house is still profitable (lot of students that come and go) and he keep an eye open. 
Be picky with your tennant. Good luck!


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## Pluto (Sep 12, 2013)

You seem to be in a no lose situation. I like the idea of the rental with a lease that expires - a must move clause after a specific time that will only be renewed if you want them. That way you get experience as a landlord. You never know, this could be the beginning of your real estate empire as the rental income and equity can be used to finance additional properties. (You should keep in mind capital gains tax issues on rental properties.) You can always sell later if it isn't your cup of tea. 

Also you might consider the dividend income you could get from the sale proceeds, and compare it to the 1800 rent. You realize that out of that rent you have to maintain, pay property taxes and so on. Compared to dividend income it may not be that good. 

If you choose a sell and invest for income approach, I suggest you get a stock account and buy xsb and or vsb - short term bonds - and then get educated on quality stocks before going all in.


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## Causalien (Apr 4, 2009)

Do the 3 month thing like suggested and kick them out if they are not ideal. Then do 6 months. Then do 9 months. Make sure you mark the space where it says the tenancy terminates after 3 months and do not continue month by month. Most bad habits comes out after 1 year of honeymoon period. 

Tenants have too much power and the burden of proof is always on the landlord. 

Example of what one of my previous tenant did. Filed for a hearing without serving me the paper. So I never know of it until very close to the hearing date when my gut says something is wrong so I checked with the tenancy board. In theory, they have to serve you the paper properly, but the judge on the hearing date does not know that because, surprise, you are not present. 

This is a simple something that can be solved by proper communication from the tenant. Turns out that they never received the deposit check back because they gave me the wrong address. 

People are assholes like that when it comes to living arrangement and perceived injustice to them. People like to play the victims and when they have nothing to lose compared to the landlord who own assets, they pull these stunts. 

If they are a smoker and you have no smoking rule in the house, they are going to smoke in the house.

SO why not sell, invest in a good 6% balanced portfolio and earn the same 1800 per month without the hassle?


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## MoMoney (Apr 1, 2011)

Sorry for your loss.

What city are you in? 

If it's Vancouver or Toronto and your property is only seconds away from a metro station... you (and the rest of the owners on your block) will probably be approached for a buyout by a developer looking to rezone and build a multi unit building. This can result in a much higher sale price than your appraised pricing.


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## Oldroe (Sep 18, 2009)

You have all the cards. You can try the rental thing. Your house will always have value.


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## twa2w (Mar 5, 2016)

If you decide to rent, remember you still have proprty, tax, insurance, repairs, maintenaince etc. You should also determine the value of the home to establish your cost base for future capitial gains. If you are not experienced as a land lord, you may wish to hire a property manager to get a decent tenant but this will cost you. And it doesnt always alleviate the bad tenant problem. Inexperienced landlords can get duped by bad tenants and it can be a pain to get rid of them, then repair the damage.
An alternative that can payoff is if the house is still furnished and fairly decent, you can find a reputable real estate agent with good sales. Offer the place to his clients when the have delays on their purchases and need short term rentals of 15 days to 6 months. These people are generally home owners and will take at least won't damage the property and you can collect highrr rent.
Or if the home is quite nice, you can offer it to an executive rental company. They take care of rentals etc and rent to executives who come into town for short periods of 3 months to a year, or are trasferred in but don't want to buy for a few months.
While being a landlord can be rewarding, it is not for everyone and there is certainly a fair amount of work to it as well as a steep learning curve. Do you want to go through that at this time.
My personal recommendation is sell now, invest the money. Less hassle, no learning curve, and you won't have to deal with any memories the house may evoke if you had kept it.
Not sure how old you are and what your personal financial situation is but don't blow the money. Pay off debt, mortgage and invest the rest.


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## Ih8Money (Dec 3, 2015)

Numbersman61 said:


> Based on your previous posts, I expect that being a landlord is not the best course for you. I've tried it once and found that dealing with tenants and/or property managers just does not suit my personality. For the record, I've been a chartered accountant for over 50 years and was a senior officer and director of some fairly large corporations so I understand the world of business very well.
> My advice is to talk to a few real estate agents who have listings in the area of the property and ask for their views as to price and suggestions re improvements. Make sure you deal with a realtor who knows the area.



You are spot on Numbersman, being a landlord is probably not for me. Dealing with people these days is like nail on a chalkboard. 
I'm not perfect myself, but I do respect people and I am a huge people pleaser, but, others may not be so kind and it wouldn't work well.

Perhaps as others suggested, find "good tenants" and go on a 3 month contract and see how it works out.


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## Ih8Money (Dec 3, 2015)

MoMoney said:


> Sorry for your loss.
> 
> What city are you in?
> 
> If it's Vancouver or Toronto and your property is only seconds away from a metro station... you (and the rest of the owners on your block) will probably be approached for a buyout by a developer looking to rezone and build a multi unit building. This can result in a much higher sale price than your appraised pricing.



My place is in *Toronto, west end, near Islintgon subway, literally 1 minute walk and you're at the station, it's a block and a half away from the station.*
3-5 minute ride south and you're on the QEW.

Most of the homes in the area that were bought, ended up being tear downs and re-builds.

My house is good enough to live in, not a run down home by any means. But those that are buying, are contractors, coming in, tearing down and building up.
So of course I'd like to maximize the potential.

My concern is if these guys come in saying well, we're going to tear it down so this is all we're going to offer.
They have me in a corner, granted I can tell them to pound dirt.

Or, maybe I should get the funds myself to hire someone to tear it down, rebuild and then sell?

This is all too much and considering what's going on mentally right now, maybe that isn't the course for me.


But all of you who replied gave great replies and it has helped me a lot in giving me as well as understanding my options.


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## Davis (Nov 11, 2014)

I haven't seen the house, but I think you sinkhole think carefully about your conclusion that your house is good enough to live in. That is the wrong question to ask. Of course it was good enough to live in, or you wouldn't have allowed your father to stay there. But your father was comfortable there, and got what he was looking for out of the house.

The question is whether a younger person or couple spending $X to buy a house would be willing to live there. My mother's 50-year-old house was sold yesterday. Of course it was good enough to live in, but a young couple willing to spend over $1m to buy a house is not going to settle for the original cupboards, furnave, windows and 1960s layout. They are now going to spend probably $200,000 to modernize the place. The real estate agents we spoke took said there was no point in spending $10,000 on staging the house because it needed too much work, and I agree with them.

The professional appraiser hired valued it seasoning a tear-down, which turned out to be incorrect. 

As far as the advice to go and find the Perfect Tenant, I think that could be generalized to: "Don't make mistakes in life. Do everything right the first time." Good luck with that. 

In your shoes (and I was in your shoes), I would do the same thing again: interview three real estate agents, pick the one that presents the best evidence on what he/she thinks the house could sell for and has the best strategy for maximizing value, then sell it, and put the money into investments that won't call you at 1:00 in the morning because the washer is broken. 

Choose to become a landlord if you are willing to be take on an extra job and you think you have the right skills and temperament. Don't become a landlord just because you inherited a house.


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## OurBigFatWallet (Jan 20, 2014)

One option would be to use a property management company. They're great for people who want to be landlords but dont want to have the hassle of chasing bad cheques, evicting tenants, screening them, checking references etc. The obvious drawback is the cost, some are around 15%, but it's tax deductible and might be worth it for a one year period to see if you want to continue renting it out and give you time to make the right decision. After one year you could sell or continue to rent it out if it is going well


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## Mortgage u/w (Feb 6, 2014)

My sympathies for your loss.
What is your main concern? You have all the choices available to you. If you want to sell, not sure why you would want to wait. Rent is an option but what is your ultimate goal with this property? The market is what it is. Whatever you may gain in a couple of years, you will pay for in upkeep and depreciation - not a good idea to keep a house empty. 

Personally, I would sell and enjoy your inheritance now. But that's just me.


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## Spudd (Oct 11, 2011)

I would sell now too. The Toronto market is hot, and you're not getting any use out of the house as it is.


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## fraser (May 15, 2010)

If it is Toronto I would sell and run away with the money.

But prior to doing so I might consider hiring a professional appraiser to understand the value of the property, the zoning, the potential value.


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## Ih8Money (Dec 3, 2015)

Well I was considering painting, just to give a "good first impression" upon entering the house, but I'm starting to rethink the whole idea. If it's going to be a tear down possibly, why bother? 
I'm 40 btw, so the money is tempting to take and buy something much smaller out in the country and invest and travel a little.
You guys and gals are certainly swaying me into thinking that way. Not a bad thing though.


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## Taraz (Nov 24, 2013)

Ih8Money said:


> Well I was considering painting, just to give a "good first impression" upon entering the house, but I'm starting to rethink the whole idea. If it's going to be a tear down possibly, why bother?
> I'm 40 btw, so the money is tempting to take and buy something much smaller out in the country and invest and travel a little.
> You guys and gals are certainly swaying me into thinking that way. Not a bad thing though.


Perhaps get an appraisal then try to FSBO it? Are you the only heir? Is there a mortgage?


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## Ih8Money (Dec 3, 2015)

Taraz said:


> Perhaps get an appraisal then try to FSBO it? Are you the only heir? Is there a mortgage?


Already had it appraised but someone told me to sell by mysef is very tricky.
I have a friend who is an agent that I may use and is willing to charge me only 1% for commission.
So is it really worth trying to save that 1%? 


Thanks again for the feedback, very much appreciated.


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## Numbersman61 (Jan 26, 2015)

Ih8Money said:


> Already had it appraised but someone told me to sell by mysef is very tricky.
> I have a friend who is an agent that I may use and is willing to charge me only 1% for commission.
> So is it really worth trying to save that 1%?
> 
> ...


I say "no" to using your friend unless he is an expert in the area. The 1% you save could easily be lost in a reduced selling price.


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## Ih8Money (Dec 3, 2015)

But if the location can really sell itself, how much more can other agents really do, the lot would sell itself? Not arguing here, but curious why you say no.

Thanks.


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## carverman (Nov 8, 2010)

Ih8Money said:


> *But if the location can really sell itself, how much more can other agents that really, the lot would sell itself?* Not arguing here, but curious why you say no.
> 
> Thanks.


My brother and aged Mom (92) is living about a block away from the Danforth-Woodbine subway stop in an old house that was probably built in the late 30s (pre WWII anyway), on a side street. 
The house is tiny 30 x 20? (600sq ft) by today's comparisons, with an upstairs bathroom and another one installed
in the basement. What is unique about it is that it has it's own private driveway, and a garage in the back and a nice little back yard for a small veggie garden.

Over the years, it's needed a lot of fixing, roof, upgrading knob&tube wiring, new gas furnace, water tank, new copper plumbing inside, new water supply line from the street as the old LEAD pipes were completely corroded inside reducing the water pressure, windows, doors, porch repair, kitchen repair etc. 

Some of the older homes around it have been completely gutted inside and rebuilt, leaving just the brick and
and the original roof line intact. What emerges is a new-old house on a small postage stamp lot, many with no driveways, only street parking.

My mother's house, (and my brother's), who will inherit it when she passes, because he wants to stay in Toronto on the subway line.. (no car or parking expenses etc), is probably worth at least $500k or even more in today's hot TO market. 

His intention is to stay in Toronto until he retires, or no longer able to work, and that could be some time yet at age 65, as he is a special consultant/computer guru for WSIB and their clients. At some point in his later years, he may sell and move
out to some small village in the Niagara area around St. Catherines) but for the moment, there are no plans to sell while Mom is still with us.

They have been approached by many real estate agents in the last few months to sell because of the interest in the house and the fact it is so close to the subway. They are saying no deal because for the time being, they like the convenience of shopping and living in an older section of the city, with a close walk to the subway...now that's gotta be worth something!


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## Ih8Money (Dec 3, 2015)

carverman said:


> They have been approached by many real estate agents in the last few months to sell because of the interest in the house and the fact it is so close to the subway. They are saying no deal because for the time being, they like the convenience of shopping and living in an older section of the city, with a close walk to the subway...now that's gotta be worth something!



Yes, but that doesn't satiate the answer as to what more can an agent whose expertise is in the area really do? Since the location sellls itself. But thanks for sharing.


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## OurBigFatWallet (Jan 20, 2014)

Keep in mind that even if you list with your friend who charges you 1% you'd still likely have to pay the agent on the buyers side a standard commission


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## carverman (Nov 8, 2010)

Ih8Money said:


> Yes, but that doesn't satiate the answer as to what more can an agent whose expertise is in the area really do? Since the location sellls itself. But thanks for sharing.


Nothing more than perhaps arrange an open house and if should a buyer be interested from another MLS real estate office..show the prospective buyer and arrange for an offer to be made.


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## Ih8Money (Dec 3, 2015)

OurBigFatWallet said:


> Keep in mind that even if you list with your friend who charges you 1% you'd still likely have to pay the agent on the buyers side a standard commission


Yes, I didn't think of that and was recently told that. 

I'm actually considering testing out the waters on Kijiji, selling privately and of course first talking to my lawyer to set up papers.
Just a simple "as is, no warranties" on the house. 

Or ComFree (even though it's not entirely commission free if the buyer has an agent).


Anyone have suggestions or tips for a private sale? Or don't do it?


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## Eclectic21 (Jun 25, 2021)

There's likely not going to be a response as you are replying to a post from five years ago.

No worries .... I've done the same thing _doh_. 


Cheers


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## AltaRed (Jun 8, 2009)

US registration as well.....


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