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A free guide for professionals looking to invest in Windsor-Essex Ontario
When we talk about professionals we tend to think of lawyers, doctors, accountants, and other professions that use a lot of brain power.
If you haven’t been in those situations, it can be mentally and emotionally draining to the point where at the end of the day or week you just want to collapse, even though you haven’t done anything physical.
Broker Rhys Wyn Trenhaile of The Vanguard Team at Manor Realty Ltd. says it’s a different type of fatigue.
“The good news is as a professional you’re often making a pretty darn good income and you want to invest. It’s good to know that people buying large get wealthy from real estate ownership not from the stock market or life insurance.”
But how are you going to own income properties when you’re already at your emotional and mental capacities, and the last thing you need is to deal with problem tenants in your duplex?
Here is a basic guide for a professional to invest in real estate? Trenhaile says professionals basically have two options.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Option number one.
“You go small, and I mean small. Like condos and single-family homes.” If you choose to go larger, Trenhaile wouldn’t recommend anything smaller than a 10-unit apartment building or commercial plaza. Why not a duplex, triplex, four-plex, or eight-unit building? The answer is stress. “The most stress-free investments are the smallest and largest,” says Trenhaile.
“The reason the smallest are stress-free is because when you have a single-family home or a condo the tenants tend to be of a higher quality.” Option number two. Tenants tend look at the condo or the single-family home as their home. Trenhaile says they’ll cut the grass, shovel the snow, and if something small breaks they will fix it. “Typically these are the type of tenants who are happy to give you 12 posted a checks to not be bothered for a year. This is the kind of investment professionals need so they can sleep at night without stressing.” This is when it becomes true passive income.
Cash flow is a little lower on the smaller properties, but if you’re a professional making good money, you’re not really worried about cash flow as much as you are the other ways you can make money from an income property. Property appreciation, pay down to the principal of the mortgage, and tax write offs. Trenhaile says the opposite is also true when you go to the larger properties because when you own a larger property you can now get the best property management.
“Even an average property manager is going to do a reasonably good job on a bigger property because that’s where they make their money. When they wake up in the morning you want them to think of your property first.” He suggests you stay away from the two to eight-unit properties.
“I can’t believe how many times we’ve had to do damage control on a problem where somebody has sold a professional with a net worth of millions of dollars a beat up fourplex in the bad part of town. I don’t understand it, but thank goodness we’ve been able to fix it every time.” For more information on the strategies and techniques of income property investments contact The Vanguard Team at Manor Realty Ltd. by phone at (519) 250-8800 or by visiting www.thevanguardteam.com.
You can also book a free strategy call with a mortgage broker in Windsor-Essex by clicking the link below right now.