BiggerPockets

Buy a house for $4,500.00. You need to get the concept that equity is equity whether you're living in it or not.

The short answer is you don't. If you can't afford to pay cash, you have to have some sort of financing.

I don't really know what works and doesn't work in Canada. Here in the US, you would have several other options.

1) Straight owner financing. Find a house where the owner will carry a note for most of the purchase price. This is how I bought my first house many years ago. Better if the current owner owes it free and clear, but still possible if they have a note on it.

2) Contract for deed. In this approach, you do a contract with the seller that says you will make payments for a certain period then you get the deed. Like a car loan where the bank keeps the title to the car until its paid off.

3) Lease/option. You lease the place and at the same time buy an option to purchase in the future at a specific price. You'll pay some option money, which is usually credited toward the purchase price. Some of the rent money can be credited toward the purchase, too.

With any of these, there can be a balloon. Say after three years, you have to either pay off the remaining amount or move out, losing whatever you paid so far. This would work fine for you. The first option might be the most attractive. The owner sells to you with a owner carried note with a 30 year amortization period buy a three year balloon. You get the house right away, and you get a deed. After two years, you start the process to refinance. You pay off the existing mortgage with the seller and have a new one with a bank.

Well... you would need to pay for it somehow... if that pmt will come from your rental properties...if your taxes are well done and your books are kept right...you have a proof of income right there....that is if your rental are really cashflowing ! Otherwise....pay cash...you would have the cash and the cashflow of your rentals will build up soon. Right?

Is this really possible?

Thanks for the post... Well since I haven't lived in Canada for several years and will still not return for another 3, I am no longer a 'resident' and therefore do not have to declare personal income tax. Only once I return. But I do have an Internet company (rentals related) that is incorporated in Canada of which I do my taxes yearly. It's not profitable yet. I used to declare my overseas rental properties income via my personal taxes when I was living in Canada, but perhaps it makes more sense to declare it through my company starting now, so that by the time I return back home, I have some years of income which I could show the bank and they could grant me a mortgage via my company? Could this work? Thank you for everyone's help!

Thanks for your post Paul. Could you please kindly elaborate? Sorry, didn't quite understand what you meant by 'existing financing'? Thank you.

Thanks for the post Tony. Well since I haven't lived in Canada for several years and will still not return for another 3, I am no longer a 'resident' and therefore do not have to declare personal income tax. Only once I return. But I do have an Internet company (rentals related) that is incorporated in Canada of which I do my taxes yearly. It's not profitable yet. I used to declare my overseas rental properties income via my personal taxes when I was living in Canada, but perhaps it makes more sense to declare it through my company starting now, so that by the time I return back home, I have some years of income which I could show the bank and they could grant me a mortgage via my company? Could this work? Thank you for your help!