Opinions on first rental unit (mfh)

9 Replies

Looking to jump in and have found a unit I'm interested in, it's in a small Canadian town exactly 30 minutes away from a major Canadian city. Unit one has three bedrooms, a bathroom, and rents for 1100 Canadian (roughly). Unit two has two bedrooms, a bathroom, and rents for 800 Canadian (roughly). It's a side by side duplex and is in decent shape, new roof 10 years ago and new propane furnace couple years ago. Asking roughly 210k but seller is very motivated. I'm in a unique position as I don't deal with loans and interest due to personal reasons so this would be my first and main investment for atleast ten years until I save enough to find another. Thanks 

Originally posted by @Dennis M. :
@Alshan San

Not a very good investment . 1900 a month on 210k price is not going to cash flow well

 I see. If the price were closer to 160k, would that work out better? Again I'm not taking loans and this is a cash purchase. Real estate in Canada is very high and not comparable to the states. 

Originally posted by @Dennis M. :

Doesn’t matter in this case  what country .The total rent should be -atleast- 1%. of the total price paid for the property 

 Are you sure?  If my house is worth 600k,  I can command 6k rent?  seems steep.  Totally willing to be proven wrong, but at point does the 1% rule waver less or more percentage...   

Originally posted by @Jesse Kerr :
Originally posted by @Dennis M.:

Doesn’t matter in this case  what country .The total rent should be -atleast- 1%. of the total price paid for the property 

 Are you sure?  If my house is worth 600k,  I can command 6k rent?  seems steep.  Totally willing to be proven wrong, but at point does the 1% rule waver less or more percentage...   

It’s only for reference and your correct once you get so high that doesn’t pan out .maybe why  alot of times on apartment complexes they go buy the cap rates 

Hey @Alshan San, 

I would run the numbers and see if it cash flows with full ask, then if it does, any decrease in selling price will most likely boost your cash flow even more. 

Be sure to account for vacancy, repairs/maintenance /capex, insurance taxes and snow removal. 

You're right that real estate in Canada is more expensive than most US states

Good luck!