Newbie from north of Toronto, Ontraio

[AJ Alexander]

Hey folks,

Newbie here currently in the education stage. I'm currently working a 9-5 job in mid management, but looking to one day quit the rat race and hopefully focus on REI full time. Would like to eventually have enough $ to put towards my kids education, travel and retire early. That's my why.

Anyway, I'm sure this likely has been asked before but does anyone have any tips on investing in a higher priced market? Being a newbie I wouldn't say I'm entirely comfortable in doing anything long-distance for my first purchase. If anyone's familiar with Ontario, I've been looking in the Barrie area. A couple of advantages I have going for me are a good credit rating and access to my HELOC.

Thanks all.

[Thomas S.]

April Stewart Landlord Legal Inc.

If you are in your learning stage it is imperative that you learn your RTA and study the operation of the LTB. Ontario is extremely pro tennat and you must understand that getting rid of a bad tennat is nearly impossible. As a landlord you have very limited rights once a tennat is in place. Screening is imperative and very difficult to learn properly.

Unlike investors in the US you can not risk getting the wrong tennat since we are not permitted to terminate a tennat lease. Tenants can end a lease, landlords can not. 

Start by studying the RTA and attending a few local LTB hearings to get a feel for the business. The Barrie area has a reputation for bad tenants and as such I would advise you steer away from SFH investing. SFHs are a prime target for professional tenants.

Put April Stewart (Landlord Legal Inc.) on your contact list. She is extremely experienced in dealing in representing landlords with tennat issues.

Finances, real estate, investing all extremely valuable information to acquire but if you want to survive  our nanny state pro tennat environment learn the system.

The province has now also introduced a mandatory government lease that landlords must use. The purpose is to better educate and protect their molly coddled tenants and give the criminal tenants more support at eviction hearings.

Best advice is make all purchase offers conditional on vacant occupancy, assuming of course you are qualified to screen applicants or have a very good highly trusted PM.