Rental Property Investor · Toronto, ON · Member since 2020 · 8 posts · 6 votes
Hey guys, I’m sick and tired with the extreme pricing of Toronto, Canada and ready for scale of USA. Issues, Canadian banks have a 5 bank monopoly and make it impossible for even a 800+ credit score to get investment properties without 35% down.
As a Canadian, wants to do air bnb short term rentals, flip long term investments and so on. WHERE WOULD be the best city to start with for networking and huge network of people to help ?
Secondly, I’m coming to USA with $450,000, I’m curios , being Canadian resident, would I ever be able to get LOANS in USA without a SSN?
Should I incorporate and build that corps credit ? WhAt would be best ?
With $450k you can buy a pretty nice VRBO in a hot tourist area like Pigeon Forge, or a nice Lake House on a southern lake that has a longer Summer peak time, etc.
Or put it to work buying a flip house and having the resources to fix it up with your own cash.
Hey guys, I’m sick and tired with the extreme pricing of Toronto, Canada and ready for scale of USA. Issues, Canadian banks have a 5 bank monopoly and make it impossible for even a 800+ credit score to get investment properties without 35% down.
As a Canadian, wants to do air bnb short term rentals, flip long term investments and so on. WHERE WOULD be the best city to start with for networking and huge network of people to help ?
Secondly, I’m coming to USA with $450,000, I’m curios , being Canadian resident, would I ever be able to get LOANS in USA without a SSN?
Should I incorporate and build that corps credit ? WhAt would be best ?
Thanks everyone
I tend to buy in the Southern half of the US for 3 reasons:
1) you get much higher year-round occupancy rates in the South & it's simply tough to earn a good ROI in the North if your place sits vacant for a big chunk of the year
2) Culturally, the Southern half of the US seems to be a lot more accepting of STRs regulation-wise. A lot of these southern beach & mountain towns have been supporting STR for 75+ years, long before Airbnb was a thing, so they're very comfortable with it and it's a built-in part of the community.
3) The Southern half of the US is more forgiving if your property is out of service for a couple months (a flood, property damage, coronavirus) bc you earn year-round revenue. People in the north can get really screwed if, for example, their property is out of service during the peak summer season when they would typically earn all of their revenue
A lot of Northern places are FREAKING OUT over STRs & STR regulations & they don’t seem to be very supportive of it. So, in the North, best case you’re fighting an uphill battle with a lot of uncertainty. Worst case, it gets outlawed in a town AFTER you’ve bought a place there & now you have to sell at a HUGE loss bc there’s no buyer demand once STR use is banned! I’ve seen it happen...
Anyway, here’s a great summary, courtesy of the amazing @Avery Carl, of the kind of numbers you can expect down south (including complete pro formas). You simply won’t get annual revenue, annual occupancy rates, annual net income, & annual ROI like this in the north:
Loans for foreign nationals like us are not advantageous without an SSN. Lending fees and interest rates are atrocious and will not help much with CoC return but you will have equity from principal payments. You definitely need an entity to own the property. Which entity you choose will be based on your investment strategy