Real Estate

What to buy for investment with $300k downpayment?

  • Last Updated:
  • Feb 6th, 2018 8:40 am
[OP]
Sr. Member
Nov 9, 2017
785 posts
100 upvotes

What to buy for investment with $300k downpayment?

Hi everyone,

What would you buy if you had $300k downpayment and wanted to not pay mortgage but allow your renter to pay going forward and be able to cash out when I want to (at least 15% on the whole property value hopefully)

I am open to both Residential and Business properties. I am able and handy. I have free time to manage tenants and do add-ons to property to bring more rent money (i.e. provider utility services such as internet, phone, etc...) or cleaning services.

Please shed some light what I am up against and what is a good choice at the moment.

I like to stay with GTA.

Thanks,
3 replies
Deal Fanatic
Jul 30, 2003
5846 posts
700 upvotes
Toronto
^ I am very close being a realtor ... your post sounds like a Q from one of the exams lol.

I will try to hit all your concerns but you are mixing couple of things that you should analyze separately to be able to make better decision:
  • You Definitely need a good realtor. (By good , I mean knowledgeable and more importantly Trust worthy!)
  • One reason being, these listing are not available to public. Only realtor can find you an investment property like that
  • When you say $300k down - I assume you mean you are willing to pay $300 down and then take mortgage? But you want Positive Cash Flow property
  • With 300k down , best case scenario you can have a million dollar total budget for investment - Banks requires 30% down in most business investments.
  • Takes 15% out: is basically taking equity out of investment. The way things are now-a-days you shouldn't really count on that. If you need 15% out, you should keep that out of investment budget right from start.
  • I can't list all your options here and explain them properly in the forum. I can give you some contacts you can sit with you and explain things to you in details?
  • You definitely don't want to deal with tenants directly (in a multi-tenant situation). For starter, its not safe. Again, learn from some experts how they are doing things.
  • If you do have time and energy, you can start some parts as AirBnB type hoteling (if you go for multi story small building). It MAY be beneficial, depending on location of building.


Another thing you want to start thinking about is your timeline, how long are you planning to keep it? and how much risk are you willing to take?

Feel free to PM
Posting Daily Stats for : Housing supply in GTA

*EXCLUSIVE METRIC*
Deal Addict
Nov 22, 2004
1513 posts
603 upvotes
PrinceMS wrote: ^ I am very close being a realtor ... your post sounds like a Q from one of the exams lol.

I will try to hit all your concerns but you are mixing couple of things that you should analyze separately to be able to make better decision:
  • You Definitely need a good realtor. (By good , I mean knowledgeable and more importantly Trust worthy!)
  • One reason being, these listing are not available to public. Only realtor can find you an investment property like that
  • When you say $300k down - I assume you mean you are willing to pay $300 down and then take mortgage? But you want Positive Cash Flow property
  • With 300k down , best case scenario you can have a million dollar total budget for investment - Banks requires 30% down in most business investments.
  • Takes 15% out: is basically taking equity out of investment. The way things are now-a-days you shouldn't really count on that. If you need 15% out, you should keep that out of investment budget right from start.
  • I can't list all your options here and explain them properly in the forum. I can give you some contacts you can sit with you and explain things to you in details?
  • You definitely don't want to deal with tenants directly (in a multi-tenant situation). For starter, its not safe. Again, learn from some experts how they are doing things.
  • If you do have time and energy, you can start some parts as AirBnB type hoteling (if you go for multi story small building). It MAY be beneficial, depending on location of building.


Another thing you want to start thinking about is your timeline, how long are you planning to keep it? and how much risk are you willing to take?

Feel free to PM
+1 Wish all RFD posts would be as helpful as this. Good points above as well as good questions.

I specialize mostly in investment and commercial properties - depending upon your objective (rental income vs capital appreciation), you've got a few options to choose from. If you're looking for active management, AirBnB, motel or other commercial property are good options. Otherwise just get a long-term tenant and take a more passive approach with rent collection and troubleshooting as required.
Realtor @ Royal LePage Ignite Realty
Newbie
Feb 5, 2018
2 posts
Snowhite, in the end it depends on what is your goal plan, what you're looking to achieve and your level of involvement. I'll explain each below.
- Goal Plan: why do you want to invest and what is your goal. Are you looking to do a one time deal? Want to build a portfolio?
- Achievements: this will be more specific to what are you looking to gain from the investment. There are investments where you'll have a lot of cash-flow, but no appreciation; there are options where cash-flow is not that great but will have a great deal of appreciation (and then you can take out those 15-20 % and reinvest it); or there can be a combination of both options
- Level of involvement: you said you're pretty handy, that's all swell, but are you willing to do the property management for the units (on top of repairs), do you have good contacts in market for cheaper suppliers without lowering the materials quality?

All these are decisional questions and based on your answers you'll have in front of you different option to choose from. This is my approach to REI. Don't jump on something just because you have some money and you think it looks good on paper. Try to put on paper everything that's involved with that decision.

[..]

To the victor belong the spoils!
UrMaRs

Top