So, I just finished off my last term of University, hopefully for some time. While I have been in university, I have made some investments into property, but I'm trying to figure out how to best plan my financial future as to make my life as flexible as possible.
All figures are in CAD
I am located in Ontario
FINANCIAL FIGURES
My current debts are as follows:
- $141000 mortgage (monthly payment of $630) which I purchased with a friend just last month, so really a $70000ish mortgage financed at 2.59%
- $76000 mortgage financed at 4.5ish% (monthly payment of $450) this will come up for a rate change in about 1.5 years.
- $10000 car loan financed at 6ish% (bi-monthly payment of $79)
- $42000 OSAP student loan which will go into effect soon.
- Personal rental costs of around $200-300 per month (changes with Airbnb)
- Other personal costs estimated at about $400-500 per month
- Property taxes that I pay would be estimated at about $3000 for the year.
My current income is as follows:
- Once fully rented, the house that I purchased alone has a gross income of about $29000 and a net income of about i would say $13000 accounting for expenses and a few thousand for maintenance (should be fully rented again by the end of this month)
- Once fully rented, the property which I purchased in partnership should have a gross income of about $22000 and a net income closer to $15000- 17000, of which I am entitled to half (should be fully rented by the end of this month).
- Around $4000-7000 in income from my part time employment.
This puts me at a liquid income of about $24500 at the low end and $29500 at the high end, not accounting for whatever other means of income I might be generating going forward from improved employment.
Other assets:
- The home I own alone i roughly estimate at being worth $195000 if not more. Improvements made on this home directly add to the property value, and there are still many to be made.
- The home purchased in partnership was estimated by the bank of being worth $195000 (but purchased at $189000).
My credit, rather surprisingly according to Mogo is in the 760-770 range.
QUESTIONS AND PROPOSED PLANS
The plan that my friend and I have is to scale property purchases if our joint experiment works and buy new properties year over year. My friends income is far better than mine, working at Amazon. He makes around $100000 if not more. He also has a house which he purchased for around $130000, and I believe he has around a $100000 mortgage on it.
I'm pretty sure if we want to continue this trend, the idea is to terminate once we reach a passive income of around $70000-80000 each, which with paid off mortgages would not actually be that many more, if we are able to find suitable properties.
It will not be easy getting mortgages we believe, however, as this last one was pretty tricky to get through. We found this rather odd as our yearly income pretty much matched the value of the size of the mortgage.
I'm quite sure I am going to have to lean up my rather fat debts to continue to be able to receive lending, and all my expendable income at least for the next few years will be tied up, but I'm not sure what I should be focusing on first. Does anyone have a smart plan of attack or a method that would be best for me? Keep in mind that all the while, I'm going to have to be also saving up for the down-payment on whatever the next property will be as well.
Is there a way for me to lessen the impact of my current debts? Is anybody familiar with how to best manipulate OSAP?
Does anybody have an idea of how lean my debts, or my friends debts will need to be to be able to receive another mortgage of similar size in my partnership? This would allow me to better allocate my funds.
Are there any creative solutions that you can think of? Perhaps setting up home lines of credit on our properties? How difficult would those be to get through?
Are there lenders I should be looking into that would make getting loans easier?
Are there any places that you believe I could save money?
Any other thoughts or suggestions?
If you have read to this point, thank you so much. I truly appreciate it.
Submitted August 17, 2017 at 03:30PM by SpadesHeart http://ift.tt/2wePr4T
