Buying a rental house in Calgary 2023 December

[Jai Kalsi]

Hello Everyone,

I have $100,000 available for downpayment. I live in Abbotsford, BC, and looking to get a house in Calgary.

The goal is to have a positive cash flow of around $500-$1000 every month. Looking for a house with a basement. The budget is in the range of $450-500k.  The monthly mortgage payment  would be $2500+ 150 (property tax)

2 months ago the plan was to get a property in Vancouver downtown and run it as Airbnb as it is closer to my house. But thank god I didn't buy a property there as recently the law has been changed by which we can't do Airbnb anymore except than our primary residence.

Is anyone doing something similar?

Or is there any better idea than this?  I am open to exploring more options.

Any advice would be helpful. Thanks.

[Santhosh Nathan]

Hi Jai, great choice considering Calgary. Realistically, to buy a detached property with a basement suite that is in somewhat decent condition, and not in an undesirable part of the city, you're looking at a price point starting in the low 500s (520K-ish and upwards of $650K for turnkey renovated older properties with legal suites). Typically with a detached property with a basement suite, and a garage, you might be able to break even, perhaps even cashflow a little with today's interest rates but it is unlikely for cashflow to be $500-1000 per month. New build detached with purpose built legal suites start close to $700K and up. 

Now what is more feasible with that budget is a semi-detached (not a strata) in an average suburban neighbourhood. Being a semi-detached, it comes with a lower price point especially on the 60s-80s built properties (which we have alot of in Calgary). They are typically anywhere from the mid 350s up to $550K-ish for premium locations. Despite having a smaller overall price point, the rents are usually similar to a detached property, which means the cashflow is better overall. There's pros and cons to each property type, and it also comes down to your holding period etc.

I'm an investor-focused realtor with Calgary Real Estate Investor Hub. Would be happy to discuss things with you!