Updated almost 5 years ago on . Most recent reply
Selling a cash negative property?
Hi looking for some advice on a rental property I have in Waterloo, ON.
I bought a student rental condo by Laurier uni for 300k 20% down in 2019. Currently refinancing taking out $67k (appraised at $375k) to purchase a 2nd rental. Because of the refi I have 1 mortgage $990/mo and 2nd mtg segment is $236/mo. Covid has resulted in reduced rent currently charging $1229/mo. After all expenses (mtg, maint fees and prop tax) I am -$450.
My plan is to purchase a 2nd rental in Windsor,ON to achieve cash flow and hopefully offset the negative cash flow from the 1st rental.
Is this a good idea? Should I have sold the Waterloo property instead?
Let me know your thoughts or alternative suggestions thanks!