50% rule and 1% rule

6 Replies

Hello,

I have been looking at a number of duplex/triplex properties recently.

I have found it very difficult to find properties following the 1% rule in southern Ontario where I am based out of. I have however been able to find properties which yield roughly 8% annually in rent and are able to meet the 50% rule while generating a small cash flow.

Would an experienced investor feel comfortable investing in the criteria I laid out above even if it didn't meet the 1% rule?

Keep in mind, I have already expanded my search criteria to include towns about 2- 5 hours away from where I live.

Thanks.

In your country can you add back in tax benefits for owning these properties.

and do you think there could be upward movement in rent rates that would take property values up with them.

Hey William,

It's getting tougher to find properties with great number but not impossible.

My latest purchase was a free-hold semi in Hamilton purchased for 136K and rents for $1200/mth plus utilities.

Regards

Thomas

Depends on where your willing to invest. Our last SFH in Timmins was purchased for $34,000 and will cost $10,000 to repair. This 4bed/2bath will be rented for $1400-1500 + utilities per month. I would take the time to look into the town in your area with the highest returns and then narrow your search from there.

Originally posted by @Nathan Boulet Boulet:

Depends on where your willing to invest. Our last SFH in Timmins was purchased for $34,000 and will cost $10,000 to repair. This 4bed/2bath will be rented for $1400-1500 + utilities per month. I would take the time to look into the town in your area with the highest returns and then narrow your search from there.

 That is absolute insanity!!! Those are Midwest American numbers right there. Nice job

Just curious as to whether anyone has experience working with the Western Canadian Properties Group?

@William Wong

Welcome to BP.

I am curious what you mean "8% of rental yield". Could you give us an example.

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