Best cash-flow markets in Canada?

Question

New to investing here, I want to start building wealth, move up the social ladder, and can’t be living with my parents anymore.

What markets are you currently investing in for cash flow and growth? I know Windsor used to be popular, but is Calgary still a good choice? Which areas are seeing the most job growth and rental demand?

Kate Sanchez · Answer

@Karan Kwatra  Calgary still offers strong rental demand and job growth, but some smaller Alberta and Atlantic Canada markets can cash-flow better. Research local trends and job sectors - good luck!

Thomas Lorini · Answer

@Karan Kwatra

Windsor is still on my radar, I still own properties there and it can be a decent market if you buy right, especially for certain duplex/triplex setups.

That said, a lot of Canadian investors I know have branched out into Calgary and Edmonton over the last few years for better cash flow potential. Both have strong rental demand and are benefiting from migration from other provinces, though they can be more cyclical due to their ties to the energy sector.

Overall, the Canadian marketplace is still relatively small compared to what’s available south of the border. Being a dual citizen, I’ve been investing in the U.S. for years, and I’ve helped many Canadians make that jump — it’s not nearly as difficult as people think once you understand the process.

If you (or anyone else reading this) are curious about how to get started in U.S. markets with stronger cash flow and more options, feel free to reach out. I mentor Canadians on how to structure, finance, and operate investments in the U.S., and can walk you through the steps.

Santhosh Nathan · Answer

Calgary is still a good cashflowing market. Like Anthony said above, not everything cashflows but we can absolutely still find cashflow here with the right product and we still have strong long term growth potential. Relatively affordable price points among the larger cities in Canada as well.

Anthony Therrien-Bernard · Answer

There are still cashflow positive properties with 20% down payment/30 years amortization. I'm an investor-focused Realtor in Calgary and we help people buy them all the time. Do all properties cash flow here? Heck no, the vast majority don't, but there are enough that do where we can find a consistent supply for buyers (and for myself), or we make them cashflow by making some changes to the property.

Karan Kwatra · Answer

@Kate Sanchez what areas of Alberta edmonton?

Stevo Sun · Answer

Edmonton and Calgary have both oversupplied. You will be looking at smaller towns like Red Deer, Lethbridge, and Medicine Hat.

Doug P. · Answer

I don't think there are any markets left in Canada where single family homes cash flow as rentals. In rural communities there's no inventory and in cities rents can't support prices.

I'm most familiar with the Kitchener area and here up to 4 units don't breakeven without 50% down. I live pretty close to the University of Waterloo and even student rentals aren't worth it anymore unless you just want to rent out a few rooms in your basement as a secondary income. A room rents for about $800-$900/month so you would need to run a lodging house with a minimum of 6 bedrooms and put at least 40% down (~$350k) just to breakeven with a prime -0.50 mortgage.

Personally I would rather put that money into a money market fund and earn 3-4% without the nonsense of being a landlord, especially with the tenant-friendly laws in Ontario.

It's worse now but it was already not worth being a landlord for most of my investing career (I started in 2000) which is why I got into lease options and seller financing.

Doug P. · Answer

How much do you have to put down to breakeven?

Anthony Therrien-Bernard · Answer

That's not true, there are plenty of markets in Canada that still cashflow.

Best cash-flow markets in Canada?

Most Popular Reply