Is buying Multi-family properties still a possibility for newbees
Hello Everyone,
I am a first time investor and have recently joined the forum. I am based out of Ontario and I am currently exploring potential opportunities for investing in a multi-family property in Ontario. But anywhere I look (within GTA/Kitchener/Waterloo/Cambridge atleast), MF properties will cost around $800K or more. Is this reality of things right now and I should accept that I have been priced out of the market?
I am on a first time investor budget of $120K down-payment max looking for cash flow positive rental properties but it is almost next to impossible to find one in this market. Does anyone have any suggestions/advice? Should I just take my money and invest in SP500 where I might get 7% returns every year?
Most Popular Reply
Hi Sarthak,
I am not sure if you are aware of the CMHC MLI Select program? But essentially it offers up to 95% LTV (of CMHC appraised value) on multi-family properties of 5 units or more, I have never gone through this program myself so I can't speak too much in detail but it's something you could look into.
The other option I would suggest is to look outside your market for houses with basement suites, here in Calgary and Edmonton you can get pretty good cashflow out of those and you can find them in the 400-500k range