Advice for a newbie choosing what market to start in (Canada)

[Meagan Peters]

Hello, I am 23 years old, I just graduated from college, and I am ready to buy my first property! I currently live in Montreal, QC. and I will be moving to Guelph, ON. in August. I originally decided on Guelph because it is a great market (low unemployment, low vacancy rates, good population growth, etc.) and the area also aligns very well with my lifestyle. I would ideally like to house hack a SFR and do a duplex conversion; however, the prices are very high in the GTA and now I am wondering if it might be more lucrative to look at more affordable markets (for example Halifax, Edmonton, Saskatoon, etc.), or possibly changing my strategy (maybe look into 3-4 unit buildings where I can still get a lower down payment if it is owner occupied).

I work remotely and do not have anything tying me to a specific city/market so I am open to moving pretty much anywhere in Canada. I know it isn't necessary to live where you invest but being a newbie, I really want to be involved in the process and learn as much as I can. My main goal at the moment is cashflow and I'd like to start off with small multifamilies. I am also really interested in doing STR's in the future so it might be interesting to be in a market with good potential for that as well. Regarding my budget, I am planning on using OPM so as long as the numbers work, I am not overly worried about financing.

I guess my main question is what markets do you see having good potential for cashflow and what would you do if you were in my situation? (Stay in the GTA and look for deals there? Move to a more affordable market like Halifax and start investing there?...)

Any advice/suggestions would be greatly appreciated!!

[Brad Jacobson]

More important than choosing a market is finding a good deal in a market you're familiar with.  I would recommend placing less emphasis on specific cities and rather invest in markets you know.  

If you're looking at properties every day and becoming more and more familiar with specific areas, you'll soon find deals wherever you are and should be able to make a house-hack work wherever you are!  

House-hacking requires some personal sacrifice so make sure you're buying something you want to live in that is in an area you like so you will have the willingness to hack with that property long term.  

Focus less on the market and more on finding a deal where you want to live!