A Realtor's Story: Buying MY first investment property

Monday Oct 29th, 2018


I’ve decided to write a blog on my journey, as it's time to get the gears in motion to purchase an investment property.   The blog will span over maybe a year (and if I get there faster, I’ll be impressed!).   Why such a long time?   I need to summon the courage, do some research on areas, to zoom in on where to do it, and the most important (and most challenging part) the financing.


I’m not wealthy by any means; as a matter of fact, sometimes I wonder how I’m going to pay the bills, BUT – as many of us have experienced – equity is building in my house, and that’s GOT to be useful.  I keep hearing of people who own several investment properties, people who are “normal”, not independently wealthy type, just people like me.  When a colleague of mine told me he owned two (another struggling realtor), I figured WHY NOT ME?    I’m sure many of  us can relate – we watch the rich get richer and we put imaginary walls in front of our dreams and even self-sabotage our efforts.   Having grown up in a german household, paying off the mortgage and living on the cheap is what’s engrained in my head, but I’ve learned over the years that investing in real estate brings the most success and financial growth.  So, here I go.  Feel free to follow along.  You may be able to relate, who knows, and I always welcome words of encouragement or helpful advice.


Firstly, I had to firmly decide on this.  It can’t just be a frivolous, impetuous idea, because I tend to give up on them by the next morning.   Being a Realtor helps a lot, in the sense that I’m comfortable handling big money transactions, I’m not afraid of the process, and I have access to the data base for doing my research.   I’ve watched trends over the years, seeing  how people are migrating north, and fully plan on taking advantage of my experience to make a smart investment.  I’m not looking to flip, but to buy a rental property (probably furnished, because that’s unique and I can charge more), and not binding people to year-long leases.  I always hear of people looking to find a short-term, furnished place to rent, but it’s a very tough  property to find!


So while I’m looking around (casually for now), I had a chat with a mortgage broker in my office.  (independent is a MUST to get access to “B Lenders” and think outside of the box).   So, it didn’t take long to see that my accountant was “too good” at writing off stuff last year, and it will be important to show more income this year.  I was really surprised to see that having exceptional credit and a nice pile of equity wasn’t enough, so here I am in October, with two and a half months to get it together and then a ridiculous e-mail to my accountant to NOT write-off so much!   (it’s gonna hurt for a while).  Of course that will be temporary, and I can write off those receipts next year.   So, holding pattern for now, until T4’s come in and then I can see how much money I can get my hands on (it kills me that it’s MY money, but I can’t access it)   In the meantime, I will keep the dream alive, hope the market works in my favor, and I may do a few trips up north and see how the different water-side towns feel.  I hear Parry Sound is a ghost town in the winter….hmmm….that could be a problem.   Stay tuned for Part 2.

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