First Time Buyer In Ontario

7 Replies

Hey everyone! 

First time here on BiggerPockets, I was looking to connect with some people to discuss buying my first investment property (and my first property) who can help provide some guidance on what time of deals/approach I should be looking for/using. I have 80k for a down payment and as of now I have been looking at houses in the St Catharines/ Niagara region. I am looking to build a portfolio and eventually supplement my income through rental properties and would love to connect to learn from others who have done this. Please let me know if you have any tips or recommendations. 

I would recommend that you consider purchasing a multiplex.  If you can use that downpayment and finance a triplex then you will have two other income units to help pay your mortgage and an ideal rental property after you move out in a few years to your own single family home if you so desire.  Good luck

I would add aim for fourplex if possible because that’s the upper limit on qualifying for residential mortgages.  More units under one roof is more efficient from investment perspective 

Originally posted by @Roy Cleeves :

I would recommend that you consider purchasing a multiplex.  If you can use that downpayment and finance a triplex then you will have two other income units to help pay your mortgage and an ideal rental property after you move out in a few years to your own single family home if you so desire.  Good luck

Thanks for the suggestion , but where in Ontario there is multi family building that isn't too old and need a ton of maintenance. 




You may find something older yet may not need a lot of work.  Best to look outside of the Golden Horseshoe.  

@Maveen Ahluwalia Connect with a mortgage agent to confirm you can quality for a 5% d/p on a 4plex. You will be limited to distance and usually an investment property will need 20% d/p. If you get a MFU and rent it 100% then you are limited to driving distance for work. However, if you plan to house hack/ live in 1 unit, then you will be limited by distance. In addition to the $80K you have, you should plan to have 2-5% for closing cost. Good luck 

@Huong Luu
The issue that I am having with putting 5% down is with my current income I cannot afford a mortgage more than 300k, and I can't find anything near me thats a MFU within that price range. Are there any tips you could recommend for qualifying for a higher mortgage or should I just be looking at cheaper properties outside of the horseshoe?


Originally posted by @Huong Luu:

@Maveen Ahluwalia Connect with a mortgage agent to confirm you can quality for a 5% d/p on a 4plex. You will be limited to distance and usually an investment property will need 20% d/p. If you get a MFU and rent it 100% then you are limited to driving distance for work. However, if you plan to house hack/ live in 1 unit, then you will be limited by distance. In addition to the $80K you have, you should plan to have 2-5% for closing cost. Good luck 

 

@Maveen Ahluwalia Use this time to educate yourself on JV and partnerships. It sounds like you have limited funds and income restrictions, so JV or doing flips in partnership may be the best way to go. With the market being the way it is, you might also be able to level your $80K at 10%+, and the Rule of 72 and use the time to educate more until you find an area that meets your criteria. Message me separate if you want more info.