With the Toronto and nearby housing prices so high, how are you guys able to generate positive cash flow with a 20% down payment.
2 bedroom condos in Toronto East are getting rented out for $1600-$1800 but the cost of condos is almost 300K with $500-$600 maintenance, with 60K as downpayment (20%) and needing to borrow another 80% i.e. 240K which is about $1100 monthly mortgage amount. It seems like most investors are either just breaking even or negative cash flow if you include cost of repairs and property insurance. The only solution I see is a bigger downpayment. Any thoughts?
There are many ways to invest. Making money with single rentals in Toronto is challenging. You could always look at other REI strategies.
I just had this investment opportunity come into my email box. Fully managed deal that looks like it will provide a good return. I know nothing about it but the point is they have structured it with a pretty good return, so it can be done. Depends how passive you want to be.
Deals are out there but they are hard to find. I think you're just looking to assume a property and run it. Unfortunately that's not well suited for the kind of market we're in.
Look for properties where you can spend a little in updates to get bigger returns. Increase the property's value to add equity fast and increase your rental rates to improve cash flow once renovated.
I have 15 years developing commercial, residential and multi family properties. I want to partner with as many people as possible. I am in Charlotte but I'm active in Charlotte, Atlanta and JAX, FL. I know how difficult it is getting started and trying to find some direction. I would like to expand to other markets and network. I would like to hear from those willing to network on some potential opportunities. I have several contacts from other wholesalers, investors and lenders. my contact info is on my profile. please be a part of my network. we are all here to grow and have bigger pockets.
A strategy that works well in the Toronto market is to buy single family homes and convert then into legal duplexes, the rental income from both units will positive cash flow and the after renovation value will add some equity into your portfolio. I have use this strategy a few times and have worked with several investors using this same strategy.