Apartment Investing for a newbie

5 Replies

Hi everyone, this is my very first thread on BP as I'm just starting my education on Real Estate to one day live off of it!

As I'm learning from a lot of sources, I started looking in my area (Quebec, Canada) for future properties to invest in. What surprised me is that there's a lot more apartment for sale than houses (about a 4-1 ratio). There's not a lot of videos on buying an apartment and then renting it as a way of investing, so I wanted to know if it was even a considerable path to take or if I would just be losing my time and money ?

Are you talking apartment like condos or multifamily apartment building, considering you are newbie I am going to assume you are talking about apartment condos. You should really learn about this investment space there are lot of forum posts and blogs about this topic. There are some advantages and lot of pitfalls, mainly like HOA and their whims. Most HOAs have a rent to owner occupancy ratio you have to mindful of, in the US if a apartment community has lot of rental investment the value may drop due to eligibility of govt backed loans. As far as I have seen, in my area the HOA cost dips heavily into my cash flow when analyzing apartments. You should do your own math to figure this out. Good luck.

@Marc-Antoine Tessier I started jumping into mfh a couple years ago from sfhs. It’s a totally different game with different players.

It’s going to take a frustrating one or two years to transition over. Let me know if you would like to connect.

@Ranga Ramanathan

What I'm talking about is only 1 unit out of the apartment bulding that is for sale. The reasoning behind my question was to know if it was worth to buy that unit in the complex and then rent it out.

Hope that clarifies my question!!

Originally posted by @Marc-Antoine Tessier :

@Ranga Ramanathan

What I'm talking about is only 1 unit out of the apartment bulding that is for sale. The reasoning behind my question was to know if it was worth to buy that unit in the complex and then rent it out.

Hope that clarifies my question!!

 Hello Marc, that is what i assumed when answering your question. Good Luck

Whats your rent/purchase ratio?

If you pay 200k for an apartment but only rent it 1k/m you will hate life. Whats the st-jerome market like? I recommend going to your ocal monthly investor meeting/networking event. Usually the club d'investisseur immobilier du québec runs the biggest one.

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