All Forum Posts by: Anthony Therrien-Bernard

Hi BP Calgary Community,

I live in Calgary and am looking getting into property investment. I am looking to invest about $100,000 on a down payment for a long term rental, but running the numbers on a few different property types I just don't see how it currently pencils out to positive cash flow. Wondering if this is just the state of the market right now, or if any of my assumptions or numbers are off. Here's a high level average cash flow calc for a few different property types based on what I'm seeing.

Apartment/Condo (2/3 BR, 1/2 Bath):

Purchase Price: $350k 

Mortgage Payment: $1550/month

Property Taxes: ~$1600/yr or $134/month

Maintenance Fee: $700/month

Property Insurance: $125/month

Utilities: $300/month

Assume no maintenance/capex reserve since Condo. $140/month vacancy reserve (5%)

Rental Income: $2800/month

Cash Flow: -$134/mo

Townhouse:

Note: Looking at low price units on the market for < 7 days to possibly get more value / minimize mortgage payments

Purchase Price: $450k

Mortgage Payment: $2150/month

Property Taxes: $1900/yr or $159/mo

Utilities: $300/month

Property Insurance: $125/month

Maintenance (5% rent) + Capex + Vacancy (5% rent) Reserve: $500/mo

Rental Income: $3000/month

Cash Flow: -$232.64

Detached Home - Single Unit

Purchase Price: $600k

Mortgage Payment: $3193

Even if I can get $3300-3400/month for a 3-4BR home purchased at $600k, maintenance and reserves will cause it to be negative cash flow

Detached Home - Two Units

Purchase Price: $700k

Mortgage Payment: $3831

Property Taxes: $3500/yr or $292/mo

Utilities: $300

Property Insurance: $125/mo

Maintenance (5% rent) + Capex + Vacancy (5% rent) Reserve: $860/mo

Cash Flow: -$608.57

Are any of my numbers way off? Reserves too high? Rents too low? I just don't see how this works out profitably in the current market.

Hola everyone, 

For those in Canada 🇨🇦 : We live in Vancouver, but we are interested in purchasing a property in either Alberta or Windsor. While my work is remote and I can move, my husband works in person. Can I qualify for this purchase using my husband's income, even though he will remain in British Columbia while I relocate first with my kid to our new property?

Thank you so much for your insights ❤️

Hey @Stevo Sun @Santhosh Nathan,

I am looking to build a portfolio with long-term rentals too and currently looking to do a CHMC MLI project and looking for like-minded people who have done it and want to do it together. Let me know if you guys have done it or know someone who had done it.

Thank you

Hey everyone, 

I'm looking for an investor friendly agent in Alberta, Canada,  which biggerpockets seems to only have resources for US markets. Can anyone know if bigger pockets actually has resources for Canada, and if not does anyone know of any resources I should check out?

I live in BC in the lower mainland, which this market is priced extremely high so I am looking to invest out of province, specifically in Alberta. The markets I am interested in most are Edmonton, lethbridge, and Airdrie. I am hoping to find something with 2 - 6 rental units, and I would like to be in the $300-$500k range. I don't mind having a slightly higher down-payment, as my primary objective would be cash flow, with appreciation as a close 2nd. I know a bit about the Alberta market, but am limited in knowledge with regards to specific neigbourhoods, and contacts.

Any help you could provide would be much appreciated!

Cheers,

Jordan 

Thanks guys! I appreciate all the replies. If anyone in Calgary is interested in meeting up for a coffee to chat let me know! Like I said I’m very new to this so I’m looking for any information or tips I can find to get started. 

Hey guys,

Im completely new to this and living in Calgary,Canada. Was just wondering if this site has any benefit to someone living and looking to invest in Canada? Are there any people from Canada on here? Any info would be much appreciated. Thanks!

Hey, everyone! Any real estate investors from Edmonton or Calgary here? I'm based in Ottawa and eager to connect with like-minded individuals for potential partnerships and deals. Feel free to send me a private message if you're interested!

I would be quite impressed if you found a property in Calgary that can generate that much positive cash flow right now. A house in the 400-500k range usually rent for 2500 or so. Our rents in Calgary are much lower than what Vancouver is. 

Also assume your house is assessed to be 450k for property tax purposed then your tax would be around 2800 annually which is 200+ a month. Your insurance maybe another 100 or so.

So mortgage 2500 + tax 200 + insurance 100 + management 10% of rent (assume you need this if you are out of town?)

You are probably looking at 3,000 cash outflow a month. To generate a 500-1000 positive cash flow, your rent would need to be 3,500 to 4,000. That is quite high for the Calgary market.

Hi,

First time looking to buy a rental property in Calgary alberta canada!

Any tips, for someone with no experience and where to start?

Hello all

What are your best credit cards as a landlord?