Start Small - But Also Big!

When an aspiring landlord takes the plunge and buys their first rental property, they often want to build an empire and keep buying more and more properties. This can be a bit tricky for three reasons. First, most revenue properties require a 25% down payment so generally you are starting with a cheaper property if you hope to acquire more. Second, it’s often difficult to find strong cash flowing properties (especially here in Alberta) so it’s hard to justify a property management company. You’ll likely be doing the job yourself. Third, it takes a lot of time to manage several properties with lower income tenants.

I often hear people say that they’d like to have a rental property as an investment but they’re so busy with life, work and the kids…it seems like too big of an undertaking.
I propose that if you fall into this group, don’t think about acquiring a small apartment building or a bunch of lower income condos or houses. Think about having one or two nice houses that you can charge higher rent for ($1400 or more/month). This is the route we took as our family was young and growing and it’s been very successful for us.
With higher rent comes a higher grade of tenant. Tenants that take good care of your property, pay their rent and stay for a longer term. (Okay, not all of them but with great screening, your chances are much better:)

The easiest way to start on this path is to rent out your current house and buy a new one. If you’d like two properties, repeat that process.