Beginner-Friendly US Real Estate Markets for Canadians!!

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Beginner-Friendly US Real Estate Markets for Canadians!!

Johnson Yu
Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes

Hello to all Canadians real estate investors on BiggerPockets! I am just getting started as a beginner real estate investor located in Vancouver, BC, Canada. I would like to reach out to fellow investors who have experience in cross-border investing, specifically as a Canadian investing in US real estate. After doing some research, I have learned that there are "landlord friendly" states that are more suitable for buy/hold investors. These states can include Texas, Indiana, Colorado, Georgia, Kentucky, Mississippi, Alabama and Michigan... just to name a few. My question is that which state / cities would you guys recommend to dive deeper for a first time buy and hold Canadian investor in the US?

Please also connect with me if you'd like to talk more about this topic!

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Brian Hosier
Investor · Port Coquitlam, BC · Member since 2013 · 203 posts · 119 votes
5y

Hi @Johnson Yu and welcome to the BP community. There are many good markets in the US but as a Canadian living in Canada, it can be more complicated than just buying in Canada. If you plan to grow a large business in the US, be sure to do your research so that you are optimized from a tax perspective. If not and you have the wrong business structure, you can end up being double-taxed.

If you are open to investing long-distance in Canada, there are markets that can cash flow. Checkout Prince George in BC, New Brunswick, Nova Scotia, Saskatoon, just to name a few. We have a few passive rentals in Saskatoon that work for us because we have a good local team on the ground there.

Feel free to join our FB group at https://www.facebook.com/group... if you want to connect with other local investors. Many in our group are like yourself, just starting out.

If you want to connect online, message me and we can get on a zoom call. Good luck with your RE journey.

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  • Chris Oliveros
    Member since 2020 · 2 posts · 1 vote
    5y

    I’m in the same boat, but a US citizen living in Vancouver. I would love to invest in the states as I think Vancouver is just way too overpriced to generate any cashflow. 

    0Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    @Chris Oliveros yeah the prices in Vancouver are so high that it’s quite difficult to cash flow. I think instead of buying one property in Vancouver, you could use that money to buy several cash flowing ones in the states! Then, you could use that monthly passive income to rent in Vancouver?!

    0Reply
  • Chris Oliveros
    Member since 2020 · 2 posts · 1 vote
    5y

    @Johnson Yu we are on the same page! Hahaha I love this city!

    1Reply
  • Brian Hosier
    Investor · Port Coquitlam, BC · Member since 2013 · 203 posts · 119 votes
    5y

    Hi @Johnson Yu and welcome to the BP community. There are many good markets in the US but as a Canadian living in Canada, it can be more complicated than just buying in Canada. If you plan to grow a large business in the US, be sure to do your research so that you are optimized from a tax perspective. If not and you have the wrong business structure, you can end up being double-taxed.

    If you are open to investing long-distance in Canada, there are markets that can cash flow. Checkout Prince George in BC, New Brunswick, Nova Scotia, Saskatoon, just to name a few. We have a few passive rentals in Saskatoon that work for us because we have a good local team on the ground there.

    Feel free to join our FB group at https://www.facebook.com/group... if you want to connect with other local investors. Many in our group are like yourself, just starting out.

    If you want to connect online, message me and we can get on a zoom call. Good luck with your RE journey.

    4Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    Hey @Brian Hosier, thanks so much for the reply! Yeah I have learned from podcasts and blogs that buying in the states as a Canadian is complicated and you'll need to be set up correctly to limit your liabilities and prevent from being double-taxed. I think finding an experienced cross border CPA is a good place to start. 

    Wow! Thanks for bringing those places up! I would definitely like to know more about those markets! I'll connect with you privately and shoot you a message!

    Johnson

    0Reply
  • Tom Lundberg
    Prince George, British Columbia · Member since 2019 · 20 posts · 7 votes
    5y

    @Johnson Yu

    A Canadian investing in the US is a good podcast to start with. He brings on many experienced guests with a lot of good information and contacts in this area, can be a bit hard to listen to from time to time but generally good information.

    1Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    Hey @Tom Lundberg! Thanks for the suggestion! I’ve actually been listening to Glen quite a bit, he gives out really good information for free! I’m looking forward to speaking to him soon!

    0Reply
  • Kwame Amoako
    Real Estate Agent · Columbus, OH · Member since 2019 · 82 posts · 133 votes
    5y

    @Johnson Yu 

    I recommend Columbus Ohio, great cash flow and appreciation with strong population growth. 

    2Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    @Kwame Amoako thanks! I’ll check it out! Do you personally invest in the city?

    1Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    I second @Kwame Amoako. You can get both when you have the right team in place. @Johnson Yu

    [email protected]614-963-3340
    2Reply
  • Rob Bergeron
    Real Estate Agent · Louisville, KY · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    I live and work in the Louisville market. David and Brandon  both  invest here. 

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Johnson Yu:

    Hello to all Canadians real estate investors on BiggerPockets! I am just getting started as a beginner real estate investor located in Vancouver, BC, Canada. I would like to reach out to fellow investors who have experience in cross-border investing, specifically as a Canadian investing in US real estate. After doing some research, I have learned that there are "landlord friendly" states that are more suitable for buy/hold investors. These states can include Texas, Indiana, Colorado, Georgia, Kentucky, Mississippi, Alabama and Michigan... just to name a few. My question is that which state / cities would you guys recommend to dive deeper for a first time buy and hold Canadian investor in the US?

    Please also connect with me if you'd like to talk more about this topic!

    It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s strategy for long-distance and made up of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to confidently invest in any market.
    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    @Remington Lyman I totally agree! Funny thing, I’m actually reading David’s book right now!

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Johnson Yu:

    @Remington Lyman I totally agree! Funny thing, I’m actually reading David’s book right now!

     Nice!

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    0Reply
  • Mike Wadsley
    Real Estate Agent · Littleton, CO · Member since 2014 · 74 posts · 45 votes
    5y

    @Johnson Yu - I would echo the statement about tax concerns. You'll want to make sure you consider your tax liability and how it relates to FIRPTA. Enforcement around FIRPTA has gained speed in the past four years and it is now part of our standard real estate contracts here in Colorado, USA.

    "The sale of an interest in real property within the United States by a “foreign person” is subject to tax liability under Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. Generally, any buyer of real property from a foreign individual is required to withhold 15% of the amount realized on the sale. If the seller is a foreign person and the buyer fails to withhold, the buyer may be held liable for the tax."

    1Reply
  • Brent Moreno
    Flipper/Rehabber · Hattiesburg, MS · Member since 2019 · 17 posts · 11 votes
    5y

    You'll have a hard time finding a more landlord-friendly state than Mississippi. While Jackson, MS has a ton of out-of-state investors, a lot of people buy because the numbers look great on paper but they don't truly understand what and where they are buying. Having a well informed, and knowledgable team that wants to see your investments succeed is crucial. 

    I can buy houses in strong rental areas in south MS at the 1% rule all day long. Reach out if you'd like to set up a call. Depending on how many and how fast you are looking to grow we may be able to help you with everything you need to where it's an easy decision. My partners have been in the business for 18 and 47 years and we buy, flip or hold 100+ properties a year. Would love to get you set up and going.

    4Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    @Mike Wadsley thanks good to know! I also read that there are some exemptions on this if:

    - amount realized is under 300k

    - buyer has plans to use as primary residence

    - or if the buyer is an individual

    I’m assuming only the first exemption applies to me as a foreign investor? As well that’s only if I plan to sell the properties for a profit correct? Would a 1031 exchange play a role in this to get me out of the tax implication? I know I probably should talk to a professional tax accountant on this matter...... but thanks for the reminder!

    1Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    @Brent Moreno would love to get in touch! Just listened to episode 334 on bp, tons of good info there! Sent you a pm!

    2Reply
  • Euric Ramirez
    Member since 2020 · 14 posts · 7 votes
    5y

    @Brent Moreno

    Hey bud, following the chat, I would like to speak with you about investing with you. Would you mind texting me ?

    5109675955.

    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Johnson Yu:

    Hello to all Canadians real estate investors on BiggerPockets! I am just getting started as a beginner real estate investor located in Vancouver, BC, Canada. I would like to reach out to fellow investors who have experience in cross-border investing, specifically as a Canadian investing in US real estate. After doing some research, I have learned that there are "landlord friendly" states that are more suitable for buy/hold investors. These states can include Texas, Indiana, Colorado, Georgia, Kentucky, Mississippi, Alabama and Michigan... just to name a few. My question is that which state / cities would you guys recommend to dive deeper for a first time buy and hold Canadian investor in the US?

    Please also connect with me if you'd like to talk more about this topic!

     Columbus, OH would be a good market to look into. It's extremely landlord-friendly. 

    1Reply
  • Alex Olson
    Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes
    5y

    @Johnson Yu I would look at a market that cash flows, is not overpriced, and where you can develop a team. The Midwest has proven great for beginners, especially those on the coasts and out of the country. Of course I am partial to KC. Have you read David Greene's book on long distance real estate investing? It is a quick read and a great starting point. 

    2Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    @Alex Olson thanks for the suggestion! Ya! I’m actually reading it right now almost done!

    0Reply
  • Noreen R.
    Investor · Miami Florida · Member since 2020 · 18 posts · 12 votes
    5y

    @Johnson Yu Hi Johnson, I currently have 3 doors in Canada but I am also looking to cross-border invest! I'm located in Ontario and looking into Louisville KY at this time. I've connected with another cross-border investor from BP who I'll be having a call with in the new year. I can let you know how that goes as well as my meeting with a cross-border taxation specialist that focuses on real-estate. Good luck and it's great to see so many supportive responses in this thread.

    @Brent Moreno Your podcast episode with your partner was great! So much creative and inspiring information. My husband and I are definately interested in opportunities in Mississippi in the near future.

    1Reply
  • Johnson Yu
    OP
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 52 posts · 25 votes
    5y

    Hey @Noreen R., that's great to hear! Let's connect and talk more!

    0Reply
  • Charles Carillo
    Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Johnson Yu

    Florida has some great markets. DM me if you want more information.

    1Reply
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