Buying, Holding & Renting Cash Flow Properties in Alberta

[Matthew Meek]

Hi Everyone,

Hope you're well. I'm new the real estate game, but am looking at getting into Buying, Holding & Selling Properties. The reason I want to get into this is I know several people, my family members included that purchase houses in smaller towns and hold them as assets and have the mortgage paid for by the renters. They then use this as their pension and passive income to continue investing into more houses and are essentially creating a long term pension. I want to not get stuck in a my corporate job forever so I need to start building money making assets.  My goal is to start to purchase rental properties and have some questions about them.

• Cash Flow - Generally where I'm looking properties sell for 100k-150k and their is a strong rental market for between $1,000-$1,200 per month. Do these Numbers Make Sense? Looking at renting for 1% of property value
• Cost of Ownership Monthly - Property tax $150, Utilities $300, Mortgage $500, Repair Fund $200, $50 for misc. 
• Down Payment - 20%
• What else should I look for in the cost of ownership? 
• I know good property managers already,  so I've yet to include that in the cost as I would be managing this remotely. I also have family in the area that are contractors and could look after the rentals
• Should I incorporate do buy these places? Create and LLC?

My goal with these properties are to buy and hold for 5-7 years and continue to upgrade into bigger places. I currently have a full time job in which I can save a large sum of my paycheck and potentially buy 1-2 of these properties per year. Wanting to be in this job max for 10 more years and keep putting my money into properties to build my assests.

Anyway I appreciate your feedback on this! Please let me know what you think.

Thanks,

Matt