all right guys so uh for those of you who've been following us for a while you've probably seen that
we do a lot of stuff with a lot of custom homes on the high-end side however we also work with a
lot of our clients that are trying to accumulate some wealth within real estate and are buying
single-family homes or legal duplexes or student rentals and basically doing more of a buy and
hold strategy today we are actually at one of my uh one of the first investment properties that i
purchased uh that i continue to hold today we've had attendant here for the last 12 years i wanted
to share a quick story with you as we go through here is that a lot of times we'll get calls from
a lot of our clients or landlords that are renting and they'll call in a panic if if there's a fridge
or a dispute with a tenant or anything i think it's really important when you're investing in
real estate especially on the rent with rentals is either going to look at things as the glass
half full or half empty in a day like today it's really easy to look at it as glass half empty
but i also want to put things in perspective as we go through but some of the stuff you're going
to see inside might shock you i know my wife when she sees it she's not going to be very happy but
it doesn't matter because we'll get through it and i'll show you how so come on through
stop looking good wow
i don't know what that is man it looks like water got there right that's a problem
you can't leave a fridge closed without it being on otherwise it starts to mold
yeah we're not oh my god look at the color difference that's crazy i don't think they
have a vacuum do you ever see that two-toned carpet it's better than what i see on the weekend
oh yeah no i walked out on my so the good news is i'm not smelling like mold or anything like that
right a toilet yeah he already mentioned that and he said it was super dirty so don't even
look because this might be pretty bad yeah look at that that's when it's going to get replaced
um obviously this stuff gets all cleaned and everything like that all right so there
was closet doors on here that were taken off it's literally painting a lot of walls some better days
even if you ran this there's not a single appliance in here that
i think that's actually working right now i don't know what to say speechless
it looks decent because there's a bit of a oh here are the closet doors oh there you have it
yeah so i think they just came off if we can get those put back on
because the baseboards are in pretty bad shape too we got it right so we'll replace the baseboard and
the shoe mold right a quarter round yeah we'll go up to there yeah we'll just stop to here
all right guys so we're back at the same rental property we're here yesterday with
massoud from eglinton hardwood flooring so quick shout out to them because anytime whether it's
going to be one of our investment properties or whether it's going to be a brand new luxury build
those guys have always been there for us so um i'm really appreciative they came out yesterday so
i wanted to come back today because i wanted to share with you an experience and
that i think it's going to be very beneficial for anybody who's considering investing in real
estate especially if you're thinking of being a landlord or if you already are and you're
already going through some hard times maybe this will kind of help you get past that so
number one this property as i mentioned earlier we bought it it was one of our first investment
properties that we bought as a rental we had a tenant in here for 12 years super nice guy paid
his rent on time uh if there was a problem he would call us but he'd say he'd take care of it
i started getting a little bit suspicious because he didn't it felt like he didn't want us to come
here and see the condition of the unit so i'm going to already confess i'm not the greatest
landlord any good landlord would have been coming here every six months to every year
i haven't been here in 12 years so i shouldn't be surprised to see what i'm seeing but there
are a couple first i will say i had one rental property one time where we had to evict the tenant
and when we went back after the sheriff was there with an evicting attendant he actually stole the
hardwood floors he actually ripped the hardwood floor so we've seen some pretty crazy stuff but
you're going to see some more stuff here today so number one uh this kitchen was a like this
whole unit was a premium unit we had integrated appliances stainless steel quartz countertop
integrated cord sink with backsplash higher end fixtures and stuff like that ideally we wish
we would be in the same condition unfortunately it's not first thing look at the fridge so this
fridge uh as soon as i open it i get a whiff it's probably not been working for two years or more
uh when a fridge is not working if you leave it closed it's going to build up with mold
uh so it does not look pretty and it certainly does not smell good so we're definitely going
to have to get that replaced and that's not an inexpensive fridge because it is an integrated
fridge uh the appliances are all salvageable they're going to need some crazy elbow grease
there's actually well there's enough grease in there maybe grease is not the word i should be
using but we'll definitely have to get that all fixed up but at least the good
news is the microwave in the dishwasher is working the sink was a really nice feature
i'm hoping that we'll be able to keep it because check this out so this cover comes off and this
was an integrated sink and this used to be white so we'll see what happens there but i'm hoping
that can be cleaned uh one of the first for me was this you got to check this out come here
so this is the bedroom and i don't know what the video quality is when you're seeing this
but this is actually broadly and it's not two pieces of carp it's not two-tone
this is actually carpet this was the original color and then this is what happens after 12 years
of never cleaning or probably even vacuuming so you can imagine what the rest of the unit
looks like um but yeah that's not pretty and then even things like the california shutters
they all got to be taken out everything's got to be cleaned with watches come here
and now when we go into the washroom uh sink doesn't work this water's been here for two days
toilet's cracked i had to use the washroom earlier i'm gonna save you guys i will not open this just
because i actually care about our viewers but to flush the tire we really have to pull that out and
pull on a string to flush it so we're gonna have to replace the toilet replace the vanity check the
rest of the pictures if they're working so there's a ton of work in here we're gonna spend thousands
and thousands probably over ten thousand dollars to get this unit to where it should be again
so what's the moral story here so let me break it down and look at big picture tenant was here for
12 years normally if you're renting you're going through a couple of tenants within that 12-year
period so every time let's say if the tenant was a three-year cycle or four year cycle i would be
you know cleaning broadly and painting i mean the guy could have called me two years ago almost time
to replace the fridge i didn't i didn't have to fix it the cost of the repair almost is the same
cost as we're replacing the fridge sometimes so these are all things i would have done that i
didn't do for the last 12 years it's happening now so that's part of the big picture bigger picture
i bought this unit for 212 000 12 years ago i think i put 10 down so i put about 25 000
down of my own money today my mortgage on this unit and i've never made the mortgage payment
myself it was the rent from the tenant that paid the mortgage payment so none of my money is really
here right remember so no repairs actually that's not true i replaced the washer and dryer within
the last year so about 2 000 there but regardless i'm getting too much details is it's this
my mortgage is 108 000 i put 25 000. if i spend another 10 i'm all in at 150 000 today this unit
is just shy of 500 000. that's a total of 350 000 so glass half full right so i'll sum it up
even easier by saying give me 10 more fridges of these give me 10 more sinks 10 more ovens
if i'm going to be making 350 000 and doing nothing for the next 12 years
it's that is that is the way i look at it and this stuff will get done and it's done it's
not gonna be the first time it's not gonna be the last time that we're gonna run into these
kinds of problems but i hope for anybody who's thinking investing in real estate
that this gives you some expectations of what you might encounter uh you'll probably do a better job
than i did and maybe avoid some of this stuff but at the same time even for you guys going through
it maybe change your perspective on it and help you get through it so until next time guys take
care
that's a good sound looks like this is
working