Finally Placing My First Offer On an Income Property

June 6, 2015 Posted by Tyler Cruz

A few days ago, I went to my lawyer’s office to sign the paperwork to set up the holding company, and then picked up the completed paperwork the next day.

I ended up going with the name Merendi Holdings Inc. The operating corporation is named Merendi Networks Inc. so it made sense to stick with a similar name. Plus, I already own the domains, have the e-mail address, logo, etc.

With the holding company all set up and in place, I then had to go to the bank and set up a new Business Savings account for it, which I did yesterday.


In addition, in order to make everything 100% official, I also wrote a cheque from my personal account with another bank to the holding company account to purchase my shares into the holding corporation.

When you purchase a property specially if its for rent, the best you can do is to hire the services of Cincinnati property management in order for you to avoid dealing directly with the tenants.

I was given the usual cheques and bank access cards and online login info, and was done in an hour.


My wallet is starting to look like George Costanza’s!


Anyhow, with all that set up, I spoke to my mortgage broker again to see if I was all ready to go ahead and make an offer on a place, and she said I was!

The day before I went to the bank, I actually went on another tour of properties with my realtor. We looked at 4 properties (it was going to be 5, but it sold at the last minute). I asked my agent to look for luxury apartments but in the meantime, we visited the properties we scheduled that day.

The first property was an older duplex (1970’s) which was pretty unimpressive inside and slightly dated and very basic. The bones looked good though and while it was unimpressive, there weren’t any glaring issues with it either. The windows may need replacing soon on it though ($10K my realtor estimated). It was in a great location though, up north. Looking for the best window replacement? You can absolutely check these guys out for they will keep your home as energy efficient as possible and will allow your home to maintain a comfortable temperature 365 days a year.

Next, we went to the scariest property I have yet to see! I had joked beforehand with my realtor on whether or not I should bring a bulletproof vest, but it turned out that my joke was a bit too close to reality!

Apart from being in arguably the absolute worst location in my city, the properties (2 separate homes, 1 lot), were miniscule and in terrible shape. I think they’re 120 years old, and they smelled terrible inside. In both units, the tenants were inside… I think I’ll spare writing about them though out of respect, but let’s just say… I was so happy to exit.

Oddly enough, those 2 properties actually ended up being the WORST in terms of numbers out of all the places I’ve looked at. The only reason I wanted to take a look at them was so that I could compare them to the other property that had 2 houses on 1 lot.The third place we looked at was a duplex that I call the “Grandma Duplex” because it was very cute and had an intelligent backyard illuminated only by night, flowers and outdoor space. It’s also a 1-floor duplex. It was very clean inside and in fantastic shape.

At that time, the Dallas Driveway Paver Installation was going on. The location was pretty good as well. I liked this one quite a bit and actually have it rated as my 3rd favourite property currently available. The one issue with it is that the numbers could be better, and I’m not sure how much it would drop because I can see it suiting an owner-occupier where the actual return doesn’t really matter. Also, the one drop they did do so far, was only for $5,000, so I don’t think they’re that motivated to sell.

Lastly, we looked at a 2-year old large house with a suite. I was very interested in seeing this one because it looked good from the online photos, and it is one of the best properties I’ve seen so far in terms of numbers.

First, the downsides. The backyard overlooks a railroad track… we’re talking within like 25 feet of the fence.


However, the tracks here on the island are not very busy. You might get 2 trains a day, and they are very small passenger trains (like 6 cars) for the most part.

Secondly, and I didn’t notice this until my realtor pointed it out, but the ground floor suite actually doesn’t have a living room which is weird. It would work for some people, such as people who just use their computer, but I could see it limiting the number of interested tenants.

Thirdly, there is a garage in which I may rent out separately to the other 2 units. This could be a bit of a pain though, as I’m not sure if a property management company would want to take this on, and it could take a long time to find “tenants” for it. Then, I also have to repair the garage door since they’re not in a great shape. If you’re looking for a garage door repair service like me, then click here to signup with Action Garage Door. Hopefully, it can help me find tenants to get me started on property management.

Now the upsides:

1. Again, the building is brand new, only 2 years old. It still looks brand new, and looks like it was built well and with quality. There is literally nothing I need to do to the property.

2. It has a half-decent ocean view surprisingly. I didn’t know that street had access to ocean views!

3. That “garage” I spoke about? Well, it’s freaking MASSIVE. We’re talking about 18 foot ceilings and 42 feet long. And it’s fully finished. It’s currently housing one of these:


In addition, it has a large separate step-down area (albeit with only 6’2″ ceilings) with a bathroom and area that would work as an office and other workshop/tool area. Basically, it’s perfect for a home-based mechanic or vehicle enthusiast.

4. It is priced well and has great cashflow numbers

The day after the viewing, I was VERY split on what property to purchase. I may still buy 2 at once, I haven’t decided on that yet. That’s getting close to spending 1 million dollars though, which is a bit scary!

I narrowed down my choices to 2, and ended up going back and forth between the property mentioned above (which I’m nicknaming The Behemoth because of the massive garage), and one of the duplex’s I saw a while back which needs a new roof (I’m currently considering roof replacement services from sites like

After changing my mind endless times, I ultimately decided to make an offer on older duplex. It’s been on the market for a lot longer (The Behemoth has only been on for a month) and is the more likely of the two to be willing to negotiate in price, and it’s in a much better location. Hillock Green offers direct public transport connectivity to key locations including the Central Business District, Woodlands Regional Centre, and other significant areas in Singapore.

I told my realtor that I’d like to put an offer on it, and so now I’m just waiting on negotiations to start. I suspect the offer will officially be made on Monday.

So now, we wait…

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Posted: June 6th, 2015 under Income Properties  

6 Responses to “Finally Placing My First Offer On an Income Property”

  1. Hustlerado says:

    Congrats man! Crazy how time goes by. Seems like it was just yesterday you started talking about buying investment properties. Hope you get it.

  2. Dave Starr says:

    I haven’t been commenting a lot, lately, Tyler, but I’m always following. Thanks for sharing so much. I can’t help wondering, though, why you wouldn’t just take that holding company and the other long-term, planning for the future actions you have been so diligent at, and go visit my good friends Joe and Justin at (not an aff link)

    The numbers they have verified for the investment grade sites they are selling look ever so much better than any “dirt based” real estate, and they are rolling out a hands-off property management and income improvement service for those investors who don’t want to operate websites any longer. I dunno, I’ve been involved in one way or another with the rental property market for years and I really can’t see it when you can just earn from your keyboard instead.

    Don’t get me wrong, we’ve known each other for years now and I am not trying to “slam” you in any way, but I’d I’d love to hear more about why you’ve felt compelled to move so far in your current direction.

    Anyway, all the the best and it’s time for another trip to the Philippines my friend … the hell with those Canadian winters 😉

    • Tyler Cruz says:

      I addressed this in a few other posts and comments, but the main reason to get into real estate is to get into something that can provide stable income that I can depend on each month. Anything online is volatile, including web publishing.

      Wouldn’t it be nice to build up a passive real estate portfolio up to where it’s making $5,000 a month and you can retire?

      I still plan on working online, but I now have a system set up where I can take excess money out of my online business and put it into much more consistent and passive income makers.

      • Dave Starr says:

        Yep I understand, but I hardly consider the rental income market stable. I lost my ass on real estate in the USA even prior to 2007/2008 when some huge percentage of America’s pension assets (held in REITS and other government licensed shell games with investor’s money … toxic mortgage bonds, etc.) just up and evaporated.

        I sympathize with you in the quest for both diversification and “safety”, but I don’t hare you view that here’s any real “safety” in rental real estate. And trust me the PITA factor can be huge.

        But hey, all the best, there’s always exceptions that prove the rule. And in my case there’s no question I’d buy the property with that huge “hobby shop” and spend my time repairing, refurbishing and adding “bling” to high-end tour buses …

        “That’s the way you do it, money for nothing and the chicks are free ..”

        • Tyler Cruz says:

          The market here, especially on the island, is a hell lot more stable than the US. Our mortgage lending was always pretty tight, and you’ve probably already heard that we weren’t affected by the 2008 crash all that much as a result.

          It’s also why over here the returns on real estate are absolutely dismal compared to the US… it’s completely night and day. If I was investing in the mid-west US, I could buy 20 houses right off the bat and be profiting quite a bit. With the same amount of money here, I can buy 2 properties. So, WAY less profit to be made here on real estate (buy and hold anyway), but it’s definitely a lot more stable, or so Tyler opines.

          • Dave Starr says:

            Interesting. I didn’t know Canada’s mortgage rules differed that much from the USA. Good deal. That’s what I like about being here in the Philippines. It’s damn difficult to get a mortgage in the first place, but defaults more or less just don’t happen, and if they do the bank or whomever forecloses is virtually never “upside down”.

            But rental returns? Miniscule compared to the USA. This is a country where it almost always pays to rent rather than buy.

            Anyway hope your offer gets accepted and things go well for you.


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