Multifamily property Investing in Ontario, Canada

[Thomas Kambadzi]

Hi everyone!

I am new to Real Estate Investing and I am excited about the journey. I just finished reading the Book by BiggerPockets on “How to Invest in Real Estate - the ultimate beginner’s guide to getting started”.

I have been analyzing plenty of deals on the Realtor.ca MLS using the new tools I just picked up in the book. Specifically I am focusing on 2-5 unit Multifamily properties in southern Ontario/GTA area up the way to Barrie region. What's interesting though is it seems as if not a lot of properties (if any) would pass the 1% rule. I know it's a general guideline that helps one to quickly filter if a property will cash flow positively. Does this mean that deals are just harder to find in this region? Makes me wonder too that are the people who end up buying these properties (which don't seem to be good deals, assuming they are bought at the asking listed price) making bad deals or are there cases whereby even though something might not necessarily pass the 1% rule, it may still end up being a worthwhile deal to look into?

Thanks in advance! 

Thomas

[Paul Sverdlin]

If you explore in the US just go to RBC or TD. They are quite willing to lend for a "cottage" or a "second home" in US. That should be stated as your intent on the application. What you actually do with that property after the loan is granted is of little concern to the bank. While rates are higher than in Canada, at least you will be able to secure financing for that very first deal.