Southern Ontario Rentals not covering Expenses

[Ralph Noack]

I am looking at properties in Brantford, Ontario, for family rentals, but finding it difficult to get  housing that can cash flow. For example, if a 3/4 bedroom house with 1or 2 bathrooms is going to cost $300,000 -$400,000  but the market is only renting out at $1400-$1600 / month, that doesn't leave anything leftover after expenses. And quite likely has me coming up short.  I want to get in on a market that is seeing house prices jump by 20% /year on average, but not at a monthly loss on cash flow.

Suggestions?

[Matt Geerts]

stop looking at retail A/B houses. Find something improbable.

Also, Roy's advice was terrible. You are not going to increase rent faster than your expenses will increase in Ontario. If you could, don't you think the market would demand more than 1400 for a 300k home? And when the market cycle goes down and your break-even house is worth 250? Buying at break-even is also a bad plan. It is literally losing money to everything in a house that wears out over time. It was a good pitch to try to get a client, but not a good way to build wealth.