1% Rule in Southern Ontario between Ottawa and Hamilton

[William Wong]

Hi,

I was wondering whether anyone has had any success finding properties yielding the 1% rule in Southern Ontario? Toronto is out of the question and I have had difficulty finding places even in Kingston, Ontario. In the odd case where the numbers did seem to line up, I was not sure if there was something deficient with the property or neighborhood which allowed the property to sell so low below market value.

Has anyone been able to find anything following the 1% rule?

[Roy N.]

Originally posted by @William Wong:

@Roy N.

Would you have any further information on how to invest in Maritime properties? Say, if I was looking to purchase a student rental?

Thanks Roy.

The basics are the same as up your way ... the outlay will be a little lower ;)

Rule 1 remains - know thy market.   If you were looking for a student rental at a reasonable price, I would first look in Moncton, then Fredericton, and finally Halifax.

Now - being the middle of August - is not necessarily the best moment to purchase a student rental.  Those who have been trying to sell their student rentals (houses, apartments, etc) over the summer have likely not re-rented them, so you would be picking up a building 2-weeks before the term starts with no tenants.  With a few exceptions, those looking for an apartment now are not the best candidates (i.e. they weren't organized enough to look in March/April).  Yes, there are exceptions, but I've declined 3 sets of applicants, in the past two weeks, for a 3-bedroom unit we have turning over this month.   If you are renting {furnished} rooms, particularly to international students, there seems to be no bad time here.

However, in about a month, those landlords who have not re-let their properties will be more motivated not to carry them empty through the winter.   If you are looking at a place which will need a little work, then a Close in October leaves you enough time to do the work and try to have it rented for January {though folks hate to move in winter, there is a certain number of students who have just discovered they do not like their current roommates, or are not crazy about residence, etc. and are looking to move).

Now, if you can find a property and dance with the owner until after Xmas and then Close in {say} late January or February, you will miss carrying an empty property through winter and will be just in time for those renting for May or September.

If you want to talk more specifically about areas for student houses, or about specific properties on the market, drop me a PM and I'll be more than happy to help ... depending on where you decide to look, I'll even offer to be your boots on the ground.