New Member from the Canadian Rockies :) - Questions about whether Buy & Hold in BC is worthwhile?
Hi everyone,
We are in a small town in the Canadian Rockies (Golden BC) and are looking into whether or not it is viable to purchase a rental property or two. We should have some extra cash in our corporation in the next couple of years, and we are trying to do our homework now - before the cash sits idle for too long.
In our town, we have limited options for multi-family (there are 3 small apartment buildings), but a lot of the town is zoned R2, so there are quite a few properties with income suites in the basement - or we would have the option to add a suite into a suitable property.
In some VERY PRELIMINARY calculations, it appears difficult to have any property in our area provide any cash flow without a large downpayment ($100K plus). Is this normal? Especially in BC?? The Cap Rates hovers around 5%, the COC is terrible (equivalent to our "High" Interest savings account with ING or slightly better), but the Total ROI starts to look mildly better- in the 12-14% range.
I guess we are wondering what is considered "reasonable" in the BC marketplace, outside of the Vancouver area. We would like to buy and hold, and are looking for some monthly cash flow to supplement our future Early Retirement plans.
We have lots to learn, and are just starting to dig through the resources on this site!
Cheers,
Alison K