Hello! Thanks for having me here.
We have about $130K in HELOC and would like to add a cash-flowing investment property in Ontario (or Out of Province should be ok too I guess; language barriers and long distance property management seems a bit scary as a first timer). I am not sure where to start. Do we find agents specializing in investment properties and go from there to narrow down places to buy properties? Trying to understand how do we go about finding the right place to invest which meets the fundamentals. I would highly appreciate any tips for getting started. Thanks!
@Kalpana Arivazhagan welcome to BP! My advice for getting started is to identify your goals. Why are you investing? Do you want just one property, or are you planning on replacing income from rentals by building up a portfolio? Then, identify a market using metrics that make sense to you. I personally look at markets that have a diverse economy, low price to rent ratio, and no rent control (this excludes Ontario and BC, btw). Do your research and know your chosen market inside and out (ideally visiting for a week or more to get the local feel). Then, reach out to property managers in the area and interview them; these will be your biggest team members. When you find the right PM, they can tap you into all the local resources (realtor, legal, insurance, lending, etc.).
There are many threads that talk about getting over the fear of long distance investing. I personally wouldn't manage any property, even if it is right next door to my house. Once you accept the PM model of real estate investing, it really doesn't matter how far away your chosen market is.
Last piece of advice... use these forums to get feedback on your chosen market. You'll be able to find others that invest where you do and build a community of like-minded individuals. Good luck!
There are always deals in Ontario.. just seek and find
Good for you @Kalpana Arivazhagan for leveraging your HELOC. Take the time to learn to run your #'s and make sure you have sufficient resources and understand the risk of using your HELOC to buy an investment. If you end up going into negative cash flow, you are still responsible for the HELOC pay and the principal should the property go into default. In addition to what
@Chris Baxter mentioned, connect with a mortgage agent that will be able to help you get a mortgage in that area. Not all agents can fund it if the property is in a smaller town.
@Chris Baxter Thank you very much for the detailed reply. Would you recommend any particular resources, websites to research markets and metrics?
@Hai Loc Thank you! How do you find markets to invest in?
@Huong Luu Thank you for the reply. Positive cash flow is paramount and I won't be purchasing anything if the numbers don't make sense. Would you recommend any particular resources, websites to research and identify markets?