I have long seen the properties as Kerry's thing, with me supporting his efforts from afar. Lately, however, I've taken on the bookkeeping and seen first hand just how much is involved in keeping the houses running smoothly. Being self-employed, Kerry calls these properties his retirement plan. They are a business in themselves, however, and our expanding real estate portfolio is a testament to his vision and work ethic.
Our shared philosophy for rental properties it that if the quality of the apartments is high, there will never be any trouble renting them to good tenants who will respect the space and the other tenants in the house. Because of this, all of the properties we own have undergone extensive renovations. I participated in the first with a complete re-do of an old house on Hunter St. in Halifax. We started and finished that project in the summer of 2007. August, to be exact. It was one month of really hard work but it paid off when some really great tenants, who still live there, moved in.
After the first Hunter St. property was complete Kerry snapped up six houses in Truro over three years. A lot of work has gone into the houses in Truro and that has been tough. There were some weeks where Kerry was up there two or three days a week. Pretty challenging to do while also maintaining a successful graphic design studio.
Kerry chose to invest in Truro because it is really hard to turn a monthly profit, or just break even, on income properties in Halifax. There are a few ways around this. One is if you are able to invest in a three or four unit property, rather than just a duplex. This can be costly given the higher down payment requirements for rental properties and the cost of multi-unit houses in Halifax. Another related way would be to make a large down payment, thereby keeping your mortgage payments low. You could also buy a house with multiple bedrooms and rent to students - something we are unwilling to do because of the turnover and potential for greater wear and tear. And the final option is to find a great deal on a duplex that needs work and renovate it into something spectacular, which is pretty much how we roll.
Buying in Truro is a different story. The prices are lower so it is easy to pick up a house with multiple units. The rental prices are somewhat comparable to Halifax. So, on a montly basis there is money coming in, instead of the opposite scenario in Halifax. The only catch is that it can make for a lot of commuting to manage the properties. Luckily Kerry has an amazing property manager up there who minimizes the stress by keeping everything ticking along smoothly. Kerry's restoration work on his Truro houses has been recognized by the Colchester Historical Society. Kerry manages all his properties under the name Urban Renewable. Check out his site for more photos.
After investing exclusively in Truro for the last few years, we decided to invest in Halifax again this past summer by purchasing a neighbouring house on Hunter St. I think it was Kerry's best work yet. With the help of his amazing carpenter he really took the time to do the work well, and paid attention to the smallest details. Here are a few before and after shots.
Being a landlord is not for the faint of heart. Kerry says that in the beginning it kept him up at night, but by learning as he went and finding help where he needed it, it has been an extremely gratifying experience that will pay off in spades. And given the recent announcement about Nova Scotia's shipbuilding contract maybe the time is right for you to think about investing in a rental property in Halifax!
Kerry chose to invest in Truro because it is really hard to turn a monthly profit, or just break even, on income properties in Halifax. There are a few ways around this. One is if you are able to invest in a three or four unit property, rather than just a duplex. This can be costly given the higher down payment requirements for rental properties and the cost of multi-unit houses in Halifax. Another related way would be to make a large down payment, thereby keeping your mortgage payments low. You could also buy a house with multiple bedrooms and rent to students - something we are unwilling to do because of the turnover and potential for greater wear and tear. And the final option is to find a great deal on a duplex that needs work and renovate it into something spectacular, which is pretty much how we roll.
Buying in Truro is a different story. The prices are lower so it is easy to pick up a house with multiple units. The rental prices are somewhat comparable to Halifax. So, on a montly basis there is money coming in, instead of the opposite scenario in Halifax. The only catch is that it can make for a lot of commuting to manage the properties. Luckily Kerry has an amazing property manager up there who minimizes the stress by keeping everything ticking along smoothly. Kerry's restoration work on his Truro houses has been recognized by the Colchester Historical Society. Kerry manages all his properties under the name Urban Renewable. Check out his site for more photos.
After investing exclusively in Truro for the last few years, we decided to invest in Halifax again this past summer by purchasing a neighbouring house on Hunter St. I think it was Kerry's best work yet. With the help of his amazing carpenter he really took the time to do the work well, and paid attention to the smallest details. Here are a few before and after shots.
Being a landlord is not for the faint of heart. Kerry says that in the beginning it kept him up at night, but by learning as he went and finding help where he needed it, it has been an extremely gratifying experience that will pay off in spades. And given the recent announcement about Nova Scotia's shipbuilding contract maybe the time is right for you to think about investing in a rental property in Halifax!
1 comment:
Great post, Marah....and well done, Kerry!!
Kathy D.
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