Hello, I have only very recently become interested in real estate investing. I discovered it through the bigger pockets podcast and have since been trying to learn as much as I can. I have become interested in investing in investing in real estate properties. I watched a webinar last night with bigger pockets explaining how to analyze potential rental properties. From all the cases I have heard about in podcasts and in the webinar the rental properties seem to be extremely cheap like only a couple hundred thousand. I live in Kitchener Waterloo, Ontario where the average price for a single family home is something like $600,000. My question is how possible is it to invest in rental properties in a market like this and still find good cash on cash return on investment? Any information would be useful, thanks.
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
6y
@Michael Stuck It is possible. You have to look for either something cheap enough to fix up or something that you can duplex and then you will receive enough cashflow and cash on cash return.
Brampton, Ontario · Member since 2017 · 47 posts · 10 votes
6y
It depends what you mean by good enough, but I am working with 2 people in the area right now and what we've found works best is an older brick Bungalow with an unfinished basement and then you get a secondary suite in there.
We made an offer on one at 485k, but got beaten out by a cleaner offer with no conditions. This one didn't have a full brick exterior, but the basement was already finished so we thought we'd give it a shot.