Any Canadians investing in Florida on here?

8 Replies

Hi BP community,

This is my first post on the BP forums!

I'm from Toronto (Canada) and I've been working part of the year in Florida. I started listening to the BP podcast and listening to BP audiobooks on my drives to and from work. I want to start investing in rental properties, but the Toronto housing market is INSANE. I'd like to invest in Florida, but I can't really find any resources on tax implications and other things I should be aware of as a Canadian investing in US properties. Yes, I've tried google, but I just read a bunch of articles from major newsletter that don't tell me much other than "the tax laws can be complicated". I don't know what I don't know and I would really appreciate it if someone can steer me in the right direction.

I will begin as a long distance investor and keep my tax home in Canada (that may change in the future). I will not be house hacking these properties and will need to get a property manager. After reading The book on rental property investing, I've decided that I would like to begin investing in multifamily homes (duplex, tri, quad) and use the BRRRR strategy. I would like to get a mortgage or refinance the home if I pay in cash. Anything I need to know as a Canadian investor with this plan and strategy?

Are there any resources, websites, articles, or books you could recommend me on this topic?

Any advice for me and anyone else in the same situation that may read this thread?

Thanks in advance!

@Kash Mahdi

@Larry Smet hosts a monthly meeting in Toronto that you want to attend - Canadians investing in the US.

To get you started,

Reading material:
"South of 49"
"Fire sale"
Both by Philip Mckernan

Talk to a cross border accountant about entity structure.

Setup an account with RBC, TD, or BMO as they have sister banks in the US that can get you financing (you don't need a Canadian account with them but it will make things easier for you).

On currency - find an opportune time(s) to exchange funds and have it sitting in USD before you need it.

Asides from entity structure, taxes, and financing all other principals of investing "out of state" apply.

Thanks @Eric Delcol

@Kash Mahdi , let me know if you'd like more info on the meetup that I run for Canadians investing in the US.  They run approximately monthly in Toronto and the next one is this coming Monday.  More info on it here:

https://www.biggerpockets.com/forums/521/topics/534637-toronto-meetup-for-investors-in-us-real-estate-mon-march-5-2018

Thanks for the reply Eric.

I have a RBC cross-border accountant and I have a regular BMO account. I also have a US SSN (for work). So, I got one part down.

I see that you're an investor in Tampa. Do you have any referrals for a cross border accountant in Tampa that deals with investors? 

Hey @Larry Smet


I would love to join the meetup. I'm currently in Florida for work, but i'll be back in Toronto in April. Would love to join the meetup and learn more from everyone there. If you have a mailing list to notify past attendees, please let me know and I'll PM you my email.

Hi Kash,

Cross border accountants need not be state specific.

If you need referrals though send me a PM and I'll be happy to put you in touch with the right people.

Originally posted by @Kash Mahdi :

Hey @Larry Smet


I would love to join the meetup. I'm currently in Florida for work, but i'll be back in Toronto in April. Would love to join the meetup and learn more from everyone there. If you have a mailing list to notify past attendees, please let me know and I'll PM you my email.

Thanks Kash - I'll add you to the list.  Look forward to meeting you in April

Regards,

Larry

@Kash Mahdi I was going to recommend @Larry Smet meetup but @Eric Delcol beat me to the punch. 

Cross-border tax information is not readily available online. Apart from referencing the bbooks mentioned by Eric, I would add that you should consider if your underlying motives:

  • Do you want to real estate returns? OR
  • Do you want to own real estate?

For the former you can save yourself a world of hassle and participate through public REITs, syndications (what we do) and/or invest in real estate companies. These are more passive type investments which are popular with investors who want high returns without the hassle of finding, managing, financing and operating real estate. 

For the latter, not only will you have to find the right deal (hard to do in the current market) but also find a good property manager (again, very hard if you just have a few units). Furthermore, your costs will be out of whack starting off i.e. not as high returns as you are expecting. 

This doesn't mean the latter is bad or the former is good. That all depends on your personality type and needs. 

If you want to know more about the basics of cross-border tax structuring you can PM me. I can give you a few examples of what our Canadian clients have done. 

Either way, I would hire the best CPA you can find who's specialty is cross-border investing. 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.