Investment options

21 Replies

Hi folks!

First post here - Have been lurking for about a week, since I discovered this forum. Loving it as a resource so far!So, brief background - English guy living in Vancouver. I want to BRRR a few places to hopefully have 10+ over the next few years.

I have a place in the UK that I'm going to sell and use the money to invest. The Vancouver market has such a high market price I'm looking at areas in Ontario, however from reading here I see that it's easier to hit the 1-2% rent 'rule' in the US and as I could potentially transfer my GBP money to CAD or USD it got me wondering about investing in the States instead.If you were in my position and likely have to get teams together that aren't remotely local, what would you do?Also, if anyone has recommendations of areas local-ish to Vancouver that have a lower cost of entry and good for rental, I'd love to hear options.

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@Robin Brown

I've heard great things about the Nanaimo and Comox markets, I plan on expanding my operations up Island once I'm up and running. Pesky Vancouverites keep refinancing their condos and buying up city blocks driving up the market. ;) Depending on where you're at in Van too, the ferry can almost be a good thing, some forced quiet time. 

Hey @Robin Brown , welcome to BP! I'm currently invested in Nanaimo here on Vancouver Island, and I think it's a great up-and-coming market to be in. Much cheaper than Vancouver or really most places in the lower mainland, and also mostly cheaper than Victoria (though you can also find cash flowing deals there). I'd say though that if you're going to be living in Vancouver, I would look into investing in the states as much as I would investing here on the island. The ferry is kind of a hassle, and especially if you have to be going back and forth fairly often it's not cheap. Might be just as easy/profitable to invest in the states. 

Also if you're interested in ontario markets, I have a buddy who's currently digging into those from long-distance as well, I'm sure he'd love to chat with you about it. Shoot me a PM if you're interested and I'll send you the details :)

I would contact several different teams in different markets, US and Canada.

Compare your returns in the different markets, take into consideration the appreciation, cash flow and tax incentives. 

I know some U.S markets have substantial cash flow, but I do not invest there and can not comment on the tax liabilities bring that money back to Canada.

I know in my market(KWC) and Hamilton you can easily achieve 25-30% ROI with paydown, appreciation and cash flow combined.

@Samuel Sedore @Elliot Sulz @Luke Gabriel

Thanks for the input everyone, I appreciate it.  I'm going to sell my property in the UK in 6months time when the tenancy expires, so I'm going to use that time to investigate markets further out (Of which the KWC/Hamilton area area definitely on my radar).

In the mean time I'm going to buy something more local, to get more experienced with the process and hopefully make it easier.  Very interested to learn more of the Vancouver Island market, along with Abbotsford and Kelowna - So if anyone has experiences/numbers I'd love to hear them.

Hi Robin,

Like Elliot, we're also invested here in Nanaimo and can confirm that cap rates actually exist here although the last few months the low inventory has been driving prices up quickly so it's currently compressing down. That being said there are still lots of opportunities to be found here.

Welcome to BP!

Hey @Robin Brown I just got back from a local meetup that I learned a lot from. They usually share some local deals as well. Have you attended any local meetings yet?

I have been to Synergy Real Estate Network and Earning Passive Income Through Real Estate both have been great meetings.

Synergy does 1-3 meetings per month and is usually in Surrey cost is $10/per meeting or $100/year. The EPITRE meeting is once a month in Vancouver cost is $5. 

@Stanley Kong 

@Ayodeji Kuponiyi

I haven't been able to attend any Surrey based ones as yet due to work schedule, but I have made another local Keyspire one - I agree there's a ton of value and want to attend more for sure, monthly meets don't come quick enough!

Thanks for the welcome - I'm for sure immersing myself in podcasts/webinars.

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Hi Robin, welcome to BP where you can find excellent resources.  I find the podcasts really educational.   I'd be happy to answer your questions in mortgage financing in Canada...shoot me a PM. 

Hi Robin, nice to see another newcomer discussing some Canadian topics.  I'm originally from NC but am now a permanent resident in Canada living in Courtenay, on Vancouver Island.  BP has been awesome for educating myself on real estate investing, but some things are definitely different in Canada.  I'm looking forward to getting more involved with the forum and learning about the nuances of investing in Canada.

In the meantime, having bought our home in Courtenay and another 1/2 duplex rental property, I can tell you that finding renters here in the Comox Valley is very easy.  The rental market is crazy tight and people are desperate for rentals to live in.  It can be pretty hard to find properties that cash flow, but if you look hard enough, they are there.

Amen John !

I also praise BP as the forums and webinars gave us the appropriate information to make our decision. There are always risks (even to cross the street) but information and knowledge sharing is the key to mitigate risks. 

We joined BP in December and by March we bought our first property in Kelowna.  Now we are getting ready for the second.

Happy investing and never miss the golden rule ...... it has to cash flow.

Cheers

Edison 

Hi @Robin Brown and welcome to BP but also the Vancouver market.

Yes its high stakes to buy-in but returns are great also! 

We actually find that we can accelerate our long term-portfolio by doing more short term deals (ourselves and with partners) and build capital (residual income) this way. With that capital on shorter term deals we, and our partners use it to buy buy-&-holds. This means that we are buying a few a year instead of continually having to save for deposits for each place.

There is cash flow in BC for sure - Vancouver is tight as you know. 

Feel free to PM me for more info or questions.

Good to hear from you guys - definitely agree this place is a great resource!

Yeah, I for sure like the idea of flips to raise capital for long term projects, @Pawan J. - Ideally, I'd love to be part of a flip, so I can learn towards part of a BRRRR strategy.

If Vancouver was a lower cost of entry I'd for sure be looking to do that, but it'd tie up too much capital versus the timeline I want for investment in some buy and holds in cheaper markets right now. 

Yes Vancovuer is high buy-in that is certainly the main reason why we have a couple partners in on each deal to spread the investment amounts. Double digit returns are double digit returns so the more you put in the more you get out!

Hey @Christopher Boyles Welcome to Van!

It'll probably change my plans or bottom line. I was planning to sell my place in the UK in a few months, so the currency thing is a fair blow. Outside of that, still trying to work out long term effects.

I could potentially wait longer to see if the currency rebounds but opinion seems to be that with less immigration, along with changes so landlords can no longer write off mortgage interest, prices will drop.

There's been some Vancouver BP meets, organized by @Matthew Jarvis  so try and get yourself along if you can!