Questions to Ask Before Buying a Potential Income Home

Homes in Montreal are no longer as cheap as they used to be. One option is to choose a home with a mortgage, such as a small house or basement, to offset the cost of housing or to bring in extra income to pay off the mortgage more quickly.

Realtor.ca , Centris.ca or DuProprio.On real estate listing sites such as com, buyers can easily filter their search to see only income properties. Recently, 10 plex on Montreal Centris have sold for less than $450,000 in places like Montreal East, Montreal North, Racine, Point au Trembles, Mercier and even Ville Marie.Listed ca. The potential total annual income in this price range is $20,000 to $30,000. You can buy overseas ventures and flex for as little as $260,000 in Wadrey-Sulange or South Shore. This includes products with similar income potential.

The idea of a mortgage assistant may be appealing, but there are many things to think about before investing.

What is your goal?

Buying Flex is not for profit. Whether profits are important depends on your needs and goals. For example, if you live in one suite and want to rent another part of the property, it may not matter how much it costs to rent the entire property. Some is better than none. On the other hand, if you plan to rent all the apartments, now or in the future, you will need to make sure that the rent collected is high enough to pay for the cost of owning the property.

How profitable is renting apartments really?

You may know the potential gross income from the property, but how much does it cost? In addition to the mortgage and taxes, you have to factor in utilities, maintenance and insurance.

It’s also a good idea to make money each month for rainy days in case the rent is overdue or the apartment is empty between tenants. Many older buildings in Montreal are dilapidated. It also looks at improvements and maintenance costs to keep the unit in good condition.

Have you done your due diligence?

If a rental unit is being rented, have you made sure that the rent is paid on time and on budget? How does the rent compare to other properties in the area? If you are planning to raise your rent, remember that there are strict rules about when and how you can raise it. If the house you live in has a separate basement room that you want to rent, have you made sure the room complies with local rules?

One way to reduce some of the risks is to buy insurance. Many brokers provide insurance to offset certain repair costs, prevent liability lawsuits if someone is injured in the property, and even compensate for loss of rental income due to insured losses or damages. For added peace of mind, some landlords accommodate their tenants.Require services such as com to compensate for losses caused by missed rent payments or property damage.

Are you ready to be a landlord?

Buying a property along with a lease is not right for everyone. Are you ready to do maintenance on your rental property or are you going to hire someone to do it? Do you know how to find and evaluate tenants? Are you prepared to confront tenants who don’t pay on time?

Read up on your rights, duties and responsibilities before you take on the responsibilities of a landlord.