Quote:
Originally Posted by Crazy Flamer
Well, I'm about to purchase a piece of real estate as an investment and I'm wondering if anyone has any tips to share. I'm looking at purchasing a condo in the inner city. This is my first time venturing into real estate investment and I'm hoping for some insight:
1) Any red/green flags to look for from potential renters?
2) How can I do a credit check on potential renters?
3)Any specifics I should include in the rental agreement? Is there a template I can use?
I've been coming across all these real estate investors in the US that seem to buy up copious amounts of property. I'm guessing the real estate investment game is different down there? In Canada, is they any way to grow a real estate portfolio besides constantly putting down 20% on each property?
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I've never rented in Calgary, but have been renting in Vancouver for 10 years now. With tenants the main things your looking for are:
1. Will they pay; and
2. How much trouble will they be.
For #1, you want someone with a stable job who is not transient.
For #2, you have to meet the person and get a feel for them. Obviously, as a landlord you have duties to upkeep a place. However, some tenants are a huge PITA, and will complain about everything and demand unreasonable upgrades on things within the unit. There's a movement to treat all landlords like they are capitalist. In reality, most have their own mortgages to pay.
Tenancy law right now is not very landlord friendly, and it's pretty easy for tenants to hold a landlord hostage and not pay for months on end while a dispute is being settled.
My greatest worry, in Calgary, would be that the Calgary rental market can go completely dry. The rental has worked out for me in Vancouver, but its also been a lot of work. Honestly, I'm not sure I would go through the hassle in a market where condo prices don't increase dramatically form year to year. If you're making cash purely from paying down the mortgage via rent, there are likely better investments out there.