Calgary AB, How are rental properties doing there?

[Alarich Alvarez]

Hello,

I am interested in acquiring a property in Calgary as a rental. I understand the market over there has taken a hit with migration and wages due to the oil crisis and that it seems like the crowd trends towards houses rather than apartment units. I am not expecting any appreciation, just cash cashflow. I am thinking of properties with a 200k-350k range.

What has the general experience been there for this purpose?

I am thinking of a condo around the downtown area. Any thoughts on how this would play out? Vacancy issues year-round?

What would be the better move for this type of purpose with that cash range within the city?

Any possible feedback or insight would be greatly appreciated!

Thank you!

[Stevo Sun]

I'm in Calgary and I have 2 single-family homes and half of a duplex for rent. 200k to 350k range would be rough to find a decent property in Calgary. You would be looking at B- or Cish neighborhoods and probably will need to put in a decent amount of work to renovate/rehab. I stay away from condos because of the condo fees as they can be quite excessive and not within your control. 

Cashflow isn't that great with the recent price appreciation and the rental market hasn't caught up. Generally to make cashflow work you will need to look at ways to suite the single-family or some other way to generate more income. Student housing (ie. renting by room) might be good for cashflow, but it would be more work to manage. 

As for the vacancy rate, it hasn't been much of an issue if you price your rental property attractively. My properties are in B- or Cish neighbourhoods so I'm not asking for high rent so it seems to work okay. Personally, I think Edmonton will have better cashflow at this time, I haven't done the work to look for property management companies in that area so I'm sticking to Calgary at the moment. 

GOOD LUCK!