Vancouver, BC · Member since 2016 · 20 posts · 4 votes
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.
@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)
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
8y
@Thomas S. I agree with you that Ontario has the most Tenant slanted regulations. However, it is still better to invest in Ontario instead of NOT investing at all. In the right cities, we have excellent appreciation rates and rental income rates. It is more of an issue to be very prudent in your tenant selection process.
Rental Property Investor · Member since 2018 · 30 posts · 5 votes
8y
@Victor Zhou, @Nathan Chase, @Luc H., @George Lay I'm closing a deal in the Ottawa area right now and live in the Vancouver area, would love to meet up with you all as well.
@Roy Cleeves I disagree, for a investor outside of Ontario, it would never be better it invest here than not invest at all. The risk, and headaches, are far too great and only magnified by the fact that they are not present to easily manage any problems in person. Definatly do not invest in Ontario if you do not live here. With the ability to invest anywhere why choose a province that has known and very real problems compared to other provinces. It would be a fools decision.
Having been in the business for decades (family since the 40s) and having dealt with the regulation changes the risk with unpredictable tenants is too high. A bad tenant is guaranteed to cost you thousands, maybe tens of thousands, as a result of our pro tenant regulations that will keep a non paying tenant in your property for months. Investors from away should not be looking at Ontario given any other option.
If you're having a meetup, count me in! I live in the north shore in Vancouver as well and like Edmonton as my go to. Its nice to see a topic relating to Canada versus having to translate everything from the US.
Hey George, i'm North Shore as well. Meeting Victor (next week it sounds like - just finding the best day) and will advise.
Hi Luc, I live in GTA and am looking at Edmonton market as well. Can you pl pm me for a quick chat. Would love to synch up and get some tips before i visit in a months time.
If you're having a meetup, count me in! I live in the north shore in Vancouver as well and like Edmonton as my go to. Its nice to see a topic relating to Canada versus having to translate everything from the US.
Hey George, i'm North Shore as well. Meeting Victor (next week it sounds like - just finding the best day) and will advise.
Hi Luc, I live in GTA and am looking at Edmonton market as well. Can you pl pm me for a quick chat. Would love to synch up and get some tips before i visit in a months time.
Happy to Lalit. I have some great connections in Edmonton, real estate agent, property manager, etc. that would i would highly recommend. We can chat over PM for details.
Hey guys, I'm brand new to this investing thing and have been looking in Abbotsford/Chilliwack area. It's impossible to find a cash-flowing deal out here. I'd be interested in meeting up if you guys are planning to get together in the future. Please add me to any email lists.
Investor · Salmon Arm, British Columbia · Member since 2017 · 19 posts · 2 votes
7y
So are people still buying buy and hold properties that aren't meeting the 1% rule and/or the 50% rule?
As I have seen in the above posts, several people are having a hard time finding properties that meet these rules. After running numbers on a property that I am viewing this afternoon I have:
Cashflow of $544.65
ROI of 14%
1% rule of 0.83%
50% rule of -$160.
So I guess the question is how reliable is it to base all investments in our current market off these rules? Or are these rules telling me even though the ROI and Cashflow look good, it is still not a good investment?
That being said, with the market cooling off currently in BC as well as most of Canada and still a high demand for rentals, shouldn't an investor be able to find great deals that meet the rules of thumb?