Investor 路 Kitchener-Waterloo, Ontario 路 Member since 2008 路 1k+ posts 路 1k+ votes
10y
@Jeff Beler@Tahric FinnGuys, stop looking for properties. You have to focus on finding motivated sellers who need to sell and then offer a solution to their problem. That's how you create good deals.
To do this you need to generate your own leads. The trick is to position yourself as either the 1st person they call, or the last person they call.
1st position: In this case you want people calling you who have a pressing time constraint that prevents them from getting their property market ready, listing it, negotiating and waiting to close. They need to sell NOW and they're willing to take a below-market price to get their cash fast.
Last position: In this case you want people calling who have tried everything to sell their property and have nearly lost hope that it's ever going to happen. They probably owe as much as the house is worth and can't lower their price to get it sold because they'll have to pay their agent out of their pocket, and they can't afford that. They're willing to let you just take over their payments.
Now go figure out how to get in contact with those people and you will find that there is an abundance of deals everywhere.
Investor 路 Bellevue, WA 路 Member since 2015 路 6 posts 路 0 votes
8y
I'm based in the US and am looking to diversify into Toronto. My ideal would be a 2bedroom condo in downtown or on a subway line. I know it's said that cashflow is impossible to find in the GTA, but I'd be willing to take a slightly lower ROI in order to get something that doesn't require any upfront maintenance and still cashflows a bit. Is this at all doable with a downpayment of, say, 150k?
I'm based in the US and am looking to diversify into Toronto. My ideal would be a 2bedroom condo in downtown or on a subway line. I know it's said that cashflow is impossible to find in the GTA, but I'd be willing to take a slightly lower ROI in order to get something that doesn't require any upfront maintenance and still cashflows a bit. Is this at all doable with a downpayment of, say, 150k?
Hey Anthony,
Absolutely do-able. With that type of downpayment you are looking at a high-end condo. Are you looking for new construction or exsisting? Luckily, running the numbers on a condo will be much easier as your maintenance costs are much more fixed (condo fees). Do your due diligence, particularly find out details about the condo board (did they raise fees? what amenities? what type of maintenance do they perform? etc)
Personally I would suggest the Yonge Finch/Shepherd area.
I'm based in the US and am looking to diversify into Toronto. My ideal would be a 2bedroom condo in downtown or on a subway line. I know it's said that cashflow is impossible to find in the GTA, but I'd be willing to take a slightly lower ROI in order to get something that doesn't require any upfront maintenance and still cashflows a bit. Is this at all doable with a downpayment of, say, 150k?
Hey Anthony,
Absolutely do-able. With that type of downpayment you are looking at a high-end condo. Are you looking for new construction or exsisting? Luckily, running the numbers on a condo will be much easier as your maintenance costs are much more fixed (condo fees). Do your due diligence, particularly find out details about the condo board (did they raise fees? what amenities? what type of maintenance do they perform? etc)
Personally I would suggest the Yonge Finch/Shepherd area.
I was planning to avoid pre-sales to avoid interest rate risk at the time of completion, but I currently don't have a preference between newer vs. older buildings (any thoughts on that?). What are the reasons you suggest Yonge Finch/Shepherd? Any reason you wouldn't suggest core downtown? Also, what about somewhere further like Don Mills station?
I'm based in the US and am looking to diversify into Toronto. My ideal would be a 2bedroom condo in downtown or on a subway line. I know it's said that cashflow is impossible to find in the GTA, but I'd be willing to take a slightly lower ROI in order to get something that doesn't require any upfront maintenance and still cashflows a bit. Is this at all doable with a downpayment of, say, 150k?
Hey Anthony,
Absolutely do-able. With that type of downpayment you are looking at a high-end condo. Are you looking for new construction or exsisting? Luckily, running the numbers on a condo will be much easier as your maintenance costs are much more fixed (condo fees). Do your due diligence, particularly find out details about the condo board (did they raise fees? what amenities? what type of maintenance do they perform? etc)
Personally I would suggest the Yonge Finch/Shepherd area.
I was planning to avoid pre-sales to avoid interest rate risk at the time of completion, but I currently don't have a preference between newer vs. older buildings (any thoughts on that?). What are the reasons you suggest Yonge Finch/Shepherd? Any reason you wouldn't suggest core downtown? Also, what about somewhere further like Don Mills station?
To put it simply, there are some low quality condos in sketchy areas that look fantastic.
The Yonge Finch/Shepherd area is much safer area that is still growing.
I've been flipping in GTA for the last 4 years and currently changing my strategy to pickup more buy & holds. We should get everyone in this forum to connect in person.
Do you have a Realtor there that you like? I often get calls for requests for a Realtor in Sarnia.
Hi Roy, A bit late but yes I do have a great realtor who's been in the business a long while. His name is Art Chester. He has managed to find me homes before they hit the market giving me that slight edge in a tough local market.
I just closed on a four unit in Hamilton, Ontario and I am looking for a referral on a capable contractor who does work in the Hamilton area. Would be a rather big job - remodel of three units and adding a basement unit which is completely unfinished at the moment.
Toronto, Ontario 路 Member since 2017 路 6 posts 路 1 vote
8y
Hi everyone, I am a little late to the party but might as well take this opportunity to introduce myself. I own a SFH in Hamilton and another one in Whitby, along with two condos in Toronto. My strategy is buy-and-hold but I don't think I can buy more as the numbers dont make sense due to inflated prices... I am looking into mortgage investing. Anyone has experience that can share?
Rental Property Investor 路 Toronto, ON 路 Member since 2017 路 37 posts 路 9 votes
8y
Hi Rachel,
I am in a very similar situation. Similar investments. I invest in mortgages too! If you would like to discuss further, to understand mortgage investing, let me know. Been doing it for years.
Rental Property Investor 路 Ottawa, Ontario 路 Member since 2018 路 52 posts 路 13 votes
8y
Looks like I'm very late to the party here. I recently moved to Toronto and wanted to invest in a rental property here, but I am finding that rents are very low relative to purchase price, so I would be relying on capital appreciation to make the investment pay off. Has anyone been able to find properties in Toronto lately yielding decent cash flow? Any neighborhood recommendations? I prefer to to buy and hold and rent out a house, but if cash flow will be so low, I would need to get more capital appreciation, which seems very uncertain at this point. Either the prices will keep going back up after the drop in the last year, or another correction is yet to come ...
Looks like I'm very late to the party here. I recently moved to Toronto and wanted to invest in a rental property here, but I am finding that rents are very low relative to purchase price, so I would be relying on capital appreciation to make the investment pay off. Has anyone been able to find properties in Toronto lately yielding decent cash flow? Any neighborhood recommendations? I prefer to to buy and hold and rent out a house, but if cash flow will be so low, I would need to get more capital appreciation, which seems very uncertain at this point. Either the prices will keep going back up after the drop in the last year, or another correction is yet to come ...
Hey Kate, it's never too late to join the party :) haha!
Positive cash flow will be challenging in Toronto, unless you get creative and work with multi family. In the past, the appreciation has been amazing and paid off much better than cash flow could have, but you never know what's ahead.
Are you looking specifically in the city of Toronto? Are you interested in multi family, or turning a single family into a triplex or fourplex?
How about looking about an hour or so outside of the city?
Looks like I'm very late to the party here. I recently moved to Toronto and wanted to invest in a rental property here, but I am finding that rents are very low relative to purchase price, so I would be relying on capital appreciation to make the investment pay off. Has anyone been able to find properties in Toronto lately yielding decent cash flow? Any neighborhood recommendations? I prefer to to buy and hold and rent out a house, but if cash flow will be so low, I would need to get more capital appreciation, which seems very uncertain at this point. Either the prices will keep going back up after the drop in the last year, or another correction is yet to come ...
Hey Kate, it's never too late to join the party :) haha!
Positive cash flow will be challenging in Toronto, unless you get creative and work with multi family. In the past, the appreciation has been amazing and paid off much better than cash flow could have, but you never know what's ahead.
Are you looking specifically in the city of Toronto? Are you interested in multi family, or turning a single family into a triplex or fourplex?
How about looking about an hour or so outside of the city?
I would prefer multi family, but there seem to be very few, and the ones I came across were above my budget, like $1.5 million or more. So more realistically, I'm looking into single family with as many separate entrances as possible (at least one to the main floor and one to the basement). Maybe rent out by the room to shorter term tenants, although not Airbnb style given that Toronto and Vancouver have started imposing regulations on Airbnb-ers and I don't want to come under government scrutiny.
I am looking specifically within Toronto city limits, unless I can find something outside the city for a much higher return, as ideally I would also like to live in the property, maybe in a shed in the back yard converted to have electricity, heating and plumbing. But rents are pretty cheap here, so continuing to rent while having an investment property yielding higher returns is an option.
I came across a flyer advertising student housing in the Kitchener/Waterloo area yielding 5% cap rate, but that rate isn't very good given that upon further research, I would be too late to that party as well, as there now is a glut of student housing and the returns after the guaranteed first and second years would likely not be good. But I am also considering buying in Toronto near a school and renting to students.
This would not be my first choice, but I might try investing in another province. Not sure if there would be adverse tax consequences though.
Open to many different possibilities but really uncertain at this point.
Hi everyone, I am a little late to the party but might as well take this opportunity to introduce myself. I own a SFH in Hamilton and another one in Whitby, along with two condos in Toronto. My strategy is buy-and-hold but I don't think I can buy more as the numbers dont make sense due to inflated prices... I am looking into mortgage investing. Anyone has experience that can share?
hi all, i own one sfh duplex in thunder bay and am looking to get into the kitchener waterloo market. brrr sfh or multi family up to 1 million purchase price. also interested in mortgage investing (notes)
@Doug Pretorious do you still do rent to own's? or owner financing as you put it?
Hello Zac I can help you with SFH duplex here in Kitchener. I recommend you do Kitchener instead of Waterloo since Waterloo has rental bylaws that eat into your profit each year and also cost a lot to set up since they have a lot required in the initial application. you can read about it on waterloo.ca if you search rental bylaw. Kitchener is more investor friendly. One of my best cashflow rentals is a bungalow with 2 units. 1210 for basement (utilities included) and 1500 (plus 1/2 utilities) for the top.
Rental Property Investor 路 Toronto ON, Canada 路 Member since 2015 路 58 posts 路 11 votes
7y
Thomas, my husband and I are doing the same thing as you, we work in high-tech companies in Silicon Valley and invest in my husband's home province Ontario. We are self-managing all our properties.
And I just quit my high-tech job to work on our rental business full-time.
You mentioned that "qualifying for a mortgage as a non-resident requires more money and more hoops to go through", we're having the same issue, did you find a better way of raising mortgage now?
@Justin H. still active in Ontario but working doing joint ventures as qualifying for a mortgage as a non-resident requires more money and more hoops to go through. Looking to get active in the US but have to build up credit and most lenders require 2 years of tax returns...so its taking longer than I prefer.
@Dea Chu don't get too discouraged but as you even mentioned you will need to take some action, you can reduce your risk but never completely eliminate it. Take action!