Canadian investor trying to get into US market
Hello all,
I'm new to these forums, I have followed them occasionally for years whenever I had time but never actively posted. Now is the time to seriously sit down and do some research as I have a new job which gives me a lot of downtime to study real estate and contribute to this wonderful community. I yearn everyones experience on these forums, there are a lot of very successful investors I would like to learn from. I have some questions I was hoping you all could help with. But before I ask those questions I'd like to give a little background of myself and my situation. I am currently living with my wife at her parents place rent free. We have few expenses, and are able to save about $2700 a month. We recently bought a Duplex in the city we live in (within British Columbia) and have quite a large mortgage on the property ($700,000). The property is not cash flowing it merely breaks even every month, that is the situation up here, it is in a terrific location here which will appreciate in value over time (the average single family home prices here are around 750k). I have no credit card debt or any other debt (ie car payments, student loans etc). That's the rundown of our situation. Our goal is to build passive Income through SFH's first and then move onto MFH's. We don't have any desire to flip or make a quick buck. As for those questions I mentioned earlier I was hoping I could get some advice on, here they are.
1) What is the typical down payment a Canadian needs to pay for a US investment property (SFH)? 20%? 30%? 100%?
2) If the Canadian banks such as RBC see that I have a 700k mortgage already will they even let me borrow one? I would not be able to finance the property without taking out a mortgage. (My credit rating is 802)
3) Is a private lender a good option if the banks refuse me? Or are the interest rates just too unreasonable?
4) Is there a way that a Canadian could qualify for the 1031 exchange?
Thanks all for your help, looking forward to hearing from all different types of people.