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Updated over 5 years ago on . Most recent reply

User Stats

7
Posts
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Patrick Ladouceur
  • Ottawa, ON
0
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7
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Should I invest for cash flow

Patrick Ladouceur
  • Ottawa, ON
Posted

Hello, I am currently in the learning process of real estate investing. I have an idea of what I am doing and what to look for. I have decided between two areas. One area is an up and comming area with great appreciation, the city is always growing, a train has just been built, the salary is above average and the city is always growing in population. The only problem is to purchase a duplex or triplex you would be looking at 700 000$ or more. The rents are barely reaching the 1% rule. Area number 2, the one I am leaning towards, has a much smaller population (1/10) and the salary is under the average. There is no new construction and I would say that most of the houses in my price range are c properties in a c area. What's attractive about this area is that you can buy a 4-plex for 200 000$ and the rent is more like the 2% rule. Also this area would be netting around 200$ per door whereas area number one would be netting somewhere like 20 to 50 a door. My question is, is it a good idea to invest in a city where the appreciation and properties are not as good for cash flow?

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