Brand new landlords in Burlington, looking for advice

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Brand new landlords in Burlington, looking for advice

Taylor Paterson
Member since 2021 · 4 posts · 0 votes

My wife and I bought a townhouse in Burlington 2 years ago. We are renting it out and moving into my father's basement apartment (cheap rent). We plan to use the Brrrr strategy on our next property. Looking for a single family or duplex to Brrrr.

Any advice on location? Outside the GTA oviously. Also, ideas on generating capital for the investment would be greatly appreciated. We plan to possibly use a HELOC plus some of our own capital.

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  • Roy Cleeves
    Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
    5y

    Getting a HELOC on your current home is an excellent way to get your 20% down for your next home.

    Or consider buying it as your primary home for only 5% down and then move out after a month and rent it out.

    If it is something that you can duplex - then you have a good option to maximize your brrr strategy.
    Consider areas such as Windsor, London, Kitchener - Waterloo, Grimsby, St. Catharines, Niagara Falls, etc.

    Get some advice from your Mortgage Broker first and then go!  Good Luck!



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  • Jacob Perez
    Rental Property Investor · Hamilton, Ontario · Member since 2016 · 285 posts · 181 votes
    5y

    @Taylor Paterson

    Congrats on taking the leap here. I've helped a lot of people here on BP strategize so they can qualify for as much as possible.


    Ditto to Roy's markets above. Sudbury has very good underlying fundamentals and purchase prices as well.

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  • Taylor Paterson
    OP
    Member since 2021 · 4 posts · 0 votes
    5y

    All great advice. Thank you.

    I've been looking into KW and London. Sudbury seems far, however I keep hearing good things.

    Is it difficult to be cash flow positive with only 5% down?

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  • Scott Allaire
    New to Real Estate · Sudbury, Ontario · Member since 2018 · 15 posts · 5 votes
    5y

    I'm in Sudbury and once I move out of my house hack which I put 5% down I'll be cash flowing.

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  • Taylor Paterson
    OP
    Member since 2021 · 4 posts · 0 votes
    5y

    How long have you been in your house hack? Is there a minimum?

    /?

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  • Scott Allaire
    New to Real Estate · Sudbury, Ontario · Member since 2018 · 15 posts · 5 votes
    5y

    There isn't a minimum compared to the US where they use fha they need to stay for one year or whatever. In Ontario, there's no limit or minimum for owner-occupied. I asked my lawyer when I closed on my property because I was curious about house hacking another property and she told me you can do it right away but I think I would be frowned upon if you owner-occupied like 5 building withing one month lol. I closed on my property in July of 2020

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  • Taylor Paterson
    OP
    Member since 2021 · 4 posts · 0 votes
    5y

    Awesome, thanks. I wasn't sure about the minimum in Ontario. Good to know. House hacking is tough with a wife and dog and life in the GTA. However, definitely willing to invest outside the GTA and Brrrr. This market is scary, but I guess you just have to find the best deal and make a move!

    Thanks for everyone's input.

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  • Scott Allaire
    New to Real Estate · Sudbury, Ontario · Member since 2018 · 15 posts · 5 votes
    5y

    If you're trying to BRRRR using bank financing it's going to be harder. You can't just refinance out of a bank loan without paying penalties or at least waiting until your terms done. I've wanted to brrrr something as well in the future but if your numbers end up working out and it's a solid investment pull the trigger

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