Looking for first rental property

2 Replies

Just starting out in real estate investing (21 years old, just out of college, no student debt, starting first full time teaching job in Canada in January). My brother and I are looking to partner in our first property. I found a local building that has 4 units with a combination of 6 bed and 3 baths, do not know a lot about the property other than its a conditional use rooming house. After factoring all expenses it cash flows around $1000. Not sure if this is something I want to get into for my first property, I have heard stories about rooming houses having tough tenants/evictions. Its within budget $145K with a 20% downpayment, and good cashflow. Anyone have good/bad experiences with rooming houses? 

Hey @Brady Moxham - One thing to note with rooming houses is that you'll have limited financing options. This isn't the type of property that is a straight forward mortgage with a bank (may need to be done through small business lending commercial type loan).

In terms of management of tenants, you'll likely have several long-term tenants paying under market rent, but that's something one could view as an opportunity vs a problem. Just depends what you're looking for.

Thanks @Jacob Perez for the reply! I had not thought of that on the financing side. Might not the best option for my first property. I do like the idea of big cashflow. In your opinion do you think first properties should be more simple SFH? Or would it not be much more difficult to get into a duplex to start? Thanks!