Overpriced Market - So now what do I do?
Good afternoon everyone,
I consider myself very much a rookie in the game of real estate investing and have lots to learn but as a canadian counterpart I sometimes find myself gawking at your home prices in the US. Furthermore, I happen to live in one of the more expensive parts of Canada (Greater Toronto Area i.e. Newmarket, Ontario). Which brings me to my question to all of you, what is the next logical step for me as a newbie investor?
I currently own ONE rental property which was a previous home 4 hours away and at the moment based on the numbers I have is slightly on the positive side of the cashflow equation. Let's say if I count the 5-7% for maintenance and vacancy I finish the month off with 50$ in my pockets. Again, this was a house purchase and I had no intention on renting it out but instead of selling it when I moved in Southern Ontario, I gave it a go and since then I've ran into Bigger Pockets. :)
Without seeming to be long-winded with all of this, I am wondering if I should just consider my hometown market which is affordable but again 4hrs away. Or should I open my eyes to the U.S. knowingly that the distance/tax implications/ etc... is a whole different bag of tricks for a seasoned investor let alone a new guy on the block.
What do you guys think?
To give you an example of what exists in my neck of the woods:
4 plex - 4 one bedroom units - century home - approx 700sqft each unit rents for approximately 800-900 per month on the safe side.
Asking price : 649900$... you don't even need to do the math to know this is the sinking Titanic for someone who doesn`t know what they are doing.
Looking forward to hearing from you guys,
Cheers!
Jamie Montpellier
High School Business Teacher / Part-time REI