Change my strategy/market?

[Frederic Babeux]

Hello all!

I am a Canadian investor with a duplex in Rochester NY and I am not sure if I should change my strategy and or market.

My long term strategy is to buy and hold but in order to scale, I need access to financing and that seems quite difficult for a Canadian investing in the states. From what I've read using the search function, the Canadian banks do not seem to lend for 4+ units buildings or at least not with favorable terms. I've also seen that there are some private and hard money that would do loans to foreigners but they seem much more expensive and they would probably kill the cash flow from the buildings i am looking into.

The duplex I own I paid for with my personal line of credit but that limits my buying power by alot.

The main reason why I invest in the states is simple, in my area in Canada, gross rent multiplier is about 16-20x, which is not ideal for cash flow.

So my question to you is this: does anyone think that it's worth it to get loans with higher interest rates and just go with my initial strategy? Or should I stick to 1-4 units where the Canadian banks are more open to lending?

Thank you in advance!

[Frederic Babeux]

@John Boychuk I am aware of the new laws that have been passed and currently only have month to month leases as I feel that is slightly less restrictive. 

@Brian Dickerson I chose Rochester because it was the closest market that had decent prices on the housing stock, I found it quite convenient to be able to drive there (about 5 hour drive which I find not too bad). I've looked at some other midwest states such as Ohio and they seem to have newer buildings (most multi's I've seen are brick buildings, which I like). I'll have to do some more research on those other states! I know alot of Canadians invest in Florida because financing is easier there for canadians (but again, only for 1-4 units).

Thank you both for your feedback, I definetly have to do some more thinking!