analyze rental properties in Montreal , Canada
Good evening,
My name is Paulo and live in Montreal. I am very interested in rental properties. I have been following bigger pockets webinars for 2 months. When I try to analyze properties applying the four quadrant method, it does not work in Montreal because most of the time I have negative cash flow and the return on investment (cash on cash) is very low around 1-2% or negative. Rentals properties in Montreal are expensive; however, the rent that tenants pay is very low. An example: I found a very nice triplex very well situated close to the subway with minimum repairs to be done. The value of the property was $485,000 and the rent for each apartment was $640/month. I think I am missing some important points about how to do calculations in Montreal. I understand US property values are cheaper and the rents are higher (depending on the area... I know). Could anyone give a suggestion how to approach rental real estate in Montreal?