New member looking for some advice Canada
Hey guys, long time reader new poster. Looking to get into some LTR or STR. I'm in vancouver, Canada . Prices, interest are very high here so wondering if anyone has some advice. I have about 500k in equity from my primary residence and approved for 850k with a 297k HELOC. Almost every place I've ran numbers on is $300 and under cash flow (without maintenance, vacancy or property managers) and most the properties are 3+ hours drive away. What do experienced investors have for advice in Canada? Prices seem to be starting to come down a bit but interest rates going up is making the payments more as time goes on. Thanks
Hi @Kevin Schmidt. Welcome to BP. Feel free to ask the Canadian Biggerpockets forums - https://www.biggerpockets.com/forums/90-canadian-real-estate on how they go about their Biggerpockets account to grow their real estate investing business.
This forum post would be a good read as well https://www.biggerpockets.com/forums/90/topics/710674-biggerpockets-pro-worth-it-in-canada
I see many investors from Vancouver not investing in Vancouver. Even for your first property, it's not as hard as you might think to invest out of province. Buy where it makes sense, not where you live. You're looking at properties 3+ hours away and a flight to Edmonton for Calgary is 1.5 hrs for $100 return. When you do it strategically and have a good team, you don't have to visit very often at all, even when you're in the shopping phase.
Quote from @Zorya Belanger:
I see many investors from Vancouver not investing in Vancouver. Even for your first property, it's not as hard as you might think to invest out of province. Buy where it makes sense, not where you live. You're looking at properties 3+ hours away and a flight to Edmonton for Calgary is 1.5 hrs for $100 return. When you do it strategically and have a good team, you don't have to visit very often at all, even when you're in the shopping phase.
that’s a idea I’m tossing around, I would be trying to use all equity (I know I may have to wait and save up to get a real cash flow deal). Does the property manager not eat up all your profits and put you in the negative?
Quote from @Kevin Schmidt:
Hey guys, long time reader new poster. Looking to get into some LTR or STR. I'm in vancouver, Canada . Prices, interest are very high here so wondering if anyone has some advice. I have about 500k in equity from my primary residence and approved for 850k with a 297k HELOC. Almost every place I've ran numbers on is $300 and under cash flow (without maintenance, vacancy or property managers) and most the properties are 3+ hours drive away. What do experienced investors have for advice in Canada? Prices seem to be starting to come down a bit but interest rates going up is making the payments more as time goes on. Thanks
@Kevin Schmidt Are you looking to invest in the US or Canada?
Quote from @Kevin Schmidt:
that’s a idea I’m tossing around, I would be trying to use all equity (I know I may have to wait and save up to get a real cash flow deal). Does the property manager not eat up all your profits and put you in the negative?
There are cash flowing properties in Edmonton even after accounting for PM. Yes, you could save money by doing it yourself, but how much is your time worth? A good PM is worth it. It also is possible to self manage from afar if you’d like, and I could connect you with other investors who do it if you need some tips. They often just pay someone to do showings.
I live on the Island, but most of my holdings are in Alberta. I would definitely suggest looking at the Edmonton market. Like any market though, you need to hustle, or have someone on the ground doing it for you.