Five Things I Want to Know Before You Buy an Investment Property | Harpreet Sekhon – INDI Mortgage
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Five Things I Want to Know Before You Buy an Investment Property

‘The Realtor Said It's a Great Investment’ Isn't One of Them.

Harpreet’s perspective

Real questions. Real properties. Real numbers.

Send me the listing. Then answer five questions. Why this property? What's the realistic rent? What are the actual expenses? Where can value potentially be created? What's the exit strategy? That's where I start.

Build the Thesis

Maybe it's a cash-flow property. Maybe it's in a location you believe has strong long-term potential. Maybe there's a secondary-suite opportunity, subject to applicable approvals. Maybe it's sitting on land with interesting future redevelopment possibilities. Maybe it's simply underpriced and needs renovation. Great. Now prove it.

Stress-Test the Numbers

Let's look at comparable rents, financing, taxes, insurance, maintenance, vacancy assumptions and renovation costs. Then stress-test it. What if rent is $200 lower? What if the furnace dies? What if interest rates are different when the mortgage renews? What if you can't refinance as much as expected?

Make Room for Reality

Good investments shouldn't need every assumption to be perfect. You don't need to convince me that you love the property. Convince me that the numbers deserve the mortgage.

General information

Bring the details before you make the decision.

These articles are for general educational and informational purposes only. They are not financial, investment, legal, tax, appraisal, construction, or real-estate advice. Qualification, rates, lender policies, property requirements, and financing options vary by borrower, property, lender, and transaction and remain subject to applicable approvals and requirements.

A practical next step

Let’s talk through your situation.

Bring the property, question, or idea. We can look at the mortgage strategy and the bigger picture together.