Over the years, I’ve bought and sold properties for many clients. I’ve also bought and sold a handful for myself. Like probably most of you, I was looking to minimize what I put down as a down payment, and so that limited what options existed for me. Bottom line: if I wanted to invest in real estate, I felt like it needed to be in condos.

Now, don’t get me wrong, I think condos can make an excellent investment – and definitely it’s the right investment for a lot of people. Though when I sat back and put on my extreme-analytics cap, I started coming up with scenarios that extended beyond condo ownership. Watch the video above from a webinar I held and recorded to get some extra insight into that process. It’s about 26 minutes long (but it’s worth it).

I took a step back this time and carefully thought out what I wanted to buy. I knew we were due to buy another property (we want to own 10 properties in 10 years). For the reasons shared in the video above, we knew we wanted to buy a three-unit home in an accessible part of Toronto. If I could get something under $1,000,000 that could bring in $4,500 in monthly rent, my numbers would work. I’ll get to the math to show you why that makes sense, but being the guy that likes things summarized – I short-cut it for you.

If a place could bring in those numbers, we were open to investigating the home some more.

In the next post, you’ll see the house we settled on – for many reasons. No reason was stronger, than the one created by my spreadsheet 🙂

2 Comments

  1. David Suddaby

    Donny, I watched your 26 minute video on you hard-selling triplexes. Great video but you never touched on how to finance them. Are you seriously assuming everyone has 300K lying around? How do you do it? And if you can do it every year, let’s talk about lowering your sales commissions on my condo sales someday! lol.

    Also, since your priority is people’s goals, you should mention the bigger challenges of managing such a property compared to condos.It’s huge and there is financial, and emotional implications to managing a freehold vs. hands-off condo.

    But anyway, congrats on your purchase. It’s awesome. But tell me what I need to buy a triplex in Mimico; the capital of triplexes and duplexes. They are all over and they are over a Millsky.

    How much do I need down in Mimico? I need an investment for my company so we are thinking my company buys a property so the cash isn’t sitting there making, quite literally 0% in a business account! That’s the best TD and Royal said they could do for me…0%. If I take it out as personal income I pay 50% tax!! Poof. Gone for good.

    Help. Maybe this is worth looking into…

    • donny

      Hey Dave!
      This is the first 26 minutes of hours-long discussions amigo. We can certainly chat about this more when we connect.
      For the other readers, no, of course I’m not assuming anyone has $300k lying around! There are ways to come up with capital Dave, and that’s mostly through having multiple investors pooling funds together (by way of a partnership agreement), or what I did which is access equity I’ve built up in my own home. Essentially, I borrowed from myself at 3.19% to make (conservatively) 7-12% annually.

      It’s not a hard sell at all. I’m a consultant, and if I’m looking at opportunities for all my clients, I can say with complete honesty that at this time, I feel that this is the best investment today. It may not be for everyone, but for the work involved, the returns are amazing.

      Let’s chat.

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