1% rule area in Canada (income properties)

[Victor Zhou]

Hello fellow Canadians, 

I had been investing in US mainly due to their good web infrastructures on finding deals and managing them through property managers.  However, with the financing structure of being a Canadian and tax filing requirements, I am looking for a Canadian location that has potential and cash flow.  I live in Vancouver, so the Greater Vancouver Area is totally out of the equation.  I am not as familiar with other parts of Canada, so I am excited to learn more!  

Hopefully this info will be useful for other Canadians as well as it's not easy to navigate through all the financing and tax complications.

Thanks, 

VZ

[Kash Jawed]

Originally posted by @Nathan Chase:

@Kash Jawed. I'm interested in how you did the financing for the BRRRR in the Canadian system. Did you use your own funds or private money up front and then one mortgage at the end? How long did you have to own it before refinancing and what LTV were you able to get?

It's no different than BRRR detailed on the BP forums. I do 20% down, renovate it (3 months), refinance with the same bank with 80% LTV. Here's what I focus on:
- buy properties where I can add value (reno, add second suites, etc.)
- ensure the ARV makes sense for that area
- have a damn good mortgage agent (someone who's an investor themselves - there's quite a few out there)