Toronto (GTA) Newbie

[Marlon Pieris]

Hi,

I'm interested in implementing a BRRRR strategy in the GTA. The problem or question I have is how to make the math work for a positive cash-flow. A lot of the videos and posts I've read are about positive cash-flows where home purchase prices are below $150K or so. Even if the rents for those places might not be as high as the rents in GTA, the housing prices are exponentially higher here. With 20% down, the rent you would need to maintain a positive cash-flow after mortgage and all expenses would be unattainable here. What am I missing? Or is Toronto (GTA) not a good market for BRRRR? Thanks in advance for any advice or help you can provide.

Regards,

Marlon

[Luc Boiron]

@Marlon Pieris I'm doing a BRRRR in Brantford right now. I got a discount on the purchase price, and it's not a home run deal but it's ok. It's a 1,600 sqft condo townhouse.

PP: $176,000

Reno: $30,000

ARV: $250,000+

Should rent for $1,600-$1,650 + utilities, condo fee of $320/month includes water, exterior maintenance including windows, doors, roof, etc.

Will cash flow a little bit and is in a good area of Brantford where I expect to see appreciation.