No Cash-Flow in Toronto? Need Advice

[Brandon White]

Hi there! My name is Brandon I am 18 years old and have a very strong interest in real estate investing.

I currently reside in Toronto, Ontario. I have been researching online and following the market for awhile now and I have come to the conclusion that Toronto is not a very good place for investors in 2016 since condos and SFM's are very expensive and rent is not able to cover your mortgage & expenses and give you a profit. I plan to save every penny I get during and after college for my first down payment on a property.

Recently i've been drawn to the idea of investing outside of the GTA and into Hamilton, London, St.Catharines etc. But since I would be investing into a market that I don't know it would be harder to do and may not be ideal for my first investment.

I have endless amounts of questions but my main need of advice is what should be my first investment? I am a fan of multi-family properties but they are just way too expensive in Toronto. If someone could help me with my situation that would mean a lot to me.

Thanks

[Eric Delcol]

Hey Brandon,

As David mentioned, you can make money in high demand areas like Toronto, San Fran, NYC, Vancouver, but not via buy and hold from day one.  You mentioned Hamilton, London etc.  Those areas you will find much better cashflow.  With that said, even in areas such as Hamilton it is hard to find cashflow positive properties.  

For us, we shifted focus towards the U.S. as we found cap rates and cashflow figures to be much more favorable.