where and how should I invest in Ontario

Question

My fiance and I are looking into first investment in Ontario.

I work in Etobicoke, so I am trying to find our first investment property not too far from work - preferably within 100-150km.

Here is the breakdown of what we can afford:

Current posesed cash: 200k

pre-approved mortgage: 600k

I am currently thinking of duplex conversion in Hamilton, so I can BRRRR. However, I am not confident if Hamilton might be the most optimal market for us. I know I can cash flow with $100-200 possitive after refinance, but not too sure if the hamilton makret would continue to appreciate as other markets.

If you were in my shoes, how and where would you invest with the capital I have?

Because this is my first investment property, I think it is right to focus on appreciation of the property instead of cash flow. - I have no doubt on meeting the minimum cash flow (positive).

Also, we would like to build our real estate investment portfolio. Hopefully more than 10 properties within 10 yrs.

Your feedback is much appreciated!

Varun Talluri · Answer

@Joseph Jin I am interested to know which place you selected for investment? Would like to know your experience in analyzing the place and property. Thanks

Andrew Postell · Answer

@Joseph Jin I see you have some good suggestions above but there is an "International Real Estate" forum that I think might get you more responses. Just a thought.

Kevin McGuire · Answer

@Joseph Jin I can’t speak to Southern Ontario, mine are in Ottawa, an area I like for a number of reasons I can get into if interested. There’s a magazine Canadian Real Estate Wealth (“CREW”) that has issues which provide analysis of various cities.

My one counsel is to always invest with positive cash flow. Yes the real gains are in appreciation but cash flow is needed to fund repairs, sustain vacancy, etc. Without that you increase risk. You don’t want to be in a position of having to keep funding the investment from your day job. You want to be able to sustain the worst case of a downturn where you lose your job and the place is empty for a few months; otherwise you’re forced to sell below market. If that happens give me a call and I’ll be waiting with my positive cash flow and reserves to pick up the good deal :)

Hai Loc · Answer

If your still thinking about the appreciation component of it you should stay in Peel Halton York.. $800k you can find something..

You can get in Burlington a rare duplex with basement so 3 units.. Even in Mississauga and Vaughan you can find a property where you can divide into 3 units..

where and how should I invest in Ontario

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