I have around 80k saved up... and was looking to buy a property for cashflow. Never owned real estate before, so open to anything - Alberta, Maritimes, USA... I live in Vancouver and nothing I can buy there.
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
5y
@Jeffrey Kay a $80K down payment at 20% LTV average gives you the power to acquire a $400k property. What's your end goal? Why are you investing? What does cash flow mean to you, and how much of it do you want? You can but $80k down on a $160k condo in the valley and it will cash flow, but you can also use that same $80k to bi a 4-plex in the maritimes or a 6-plex in some US markets. Lots of options to consider.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
I'm not seeing a question, but here are my comments: You may be thinking nothing to buy in Vancouver because you are thinking of a long term rental. What about a different strategy - such as short term rental? Your cash flow may be greater and enable you to make it happen. If not an STR, then find a market that you are familiar with and that you can develop a team in, then start analyzing deals. If you just want passive income without the hassles of being a landlord - then invest in a syndication. If you're clear on your goals, you can define your path.
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
5y
@Jeffrey Kay a $80K down payment at 20% LTV average gives you the power to acquire a $400k property. What's your end goal? Why are you investing? What does cash flow mean to you, and how much of it do you want? You can but $80k down on a $160k condo in the valley and it will cash flow, but you can also use that same $80k to bi a 4-plex in the maritimes or a 6-plex in some US markets. Lots of options to consider.
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
5y
@Jeffrey Kay unfortunately, nobody can make that decision for you, but it's important to make sure this doesn't prevent you from getting started. Here is a workflow that can be useful:
Pick a market based on metrics that make sense to you. Some of the metrics and filters I consider are
Price to rent ratio
Price per door
No rent control
Up-trending and diverse economy
Build a team in your chosen market with lots of interviews (ideally in person)
Realtors
Property Managers
Local mortgage broker or lenders
Identify the type of property you are looking for (as specifically as possible) and share that with your team
Be prepared to take action as soon as a property that fits your criteria materializes
Rental Property Investor · Calgary, AB · Member since 2018 · 51 posts · 16 votes
5y
@Jeffrey Kay It is not easy to decide what strategy to adopt at the beginning of the journey as there are so many options as you said. I have been there as well.
Some important questions to ask yourself: do you need the cashflow right now? and if no, when do you think you will want it? Do you have a job and are still planning to work for another 5 years at least?
I bought "buy and hold" when I started thinking about cashflow only at the time. I'm getting about $300 cashflow per month which is great but not life changing at all. Now I'm waiting the 5 years mark to pull out some serious money that I can reinvest somewhere else.
I don't regret my investments as the properties had some good increase in value and are doing well. But as I'm trying to grow my real estate business and I'm the point where I am, I now think of better capital usage right now.
This comes down to how fast you want to scale or if you simply want to buy 1 property with that money for the long term.
Aside of those considerations, I totally recommend following @Account Closed workflow outlined above. I took those exact steps to find my properties on the other side of the country (except for the rent control part).