How to start investing in Montreal

[Karl Rivest Harnois]

Hi I’m new to BP and real estate in general. I would like to start investing in Montreal but I don’t know where to start.

I currently have 20k saved and can save an extra 3 to 3.5k per month due to my current job (senior iOS-backend developer). My goal would be to fully live from rental in 10-15 years if possible (is that feasible in Montreal with my current situation?).

I’ve been looking for a duplex as my first property, so that I could live on one floor and rent the other one (is that a good idea?). The areas I’m interested in are Rosemont, Villeray and Verdun. So far I can’t find anything that could generate a positive cash flow rent-wise.

[Benjamin Larouche]

Forget generating a positive cashflow in those areas within the next 3 years unless you're buying something seriously distressed. Anything half-livable will get snatched up at retail price in the plex/single-family home market. The inventory is too low.

Options:
If you're accounting for the economy in your living situation, you can "cheat" yourself into a cashflow position. Ex: if I were to get into the real estate market in a condo for something similar, it would cost me roughly 1500$ per door. By purchasing a larger home with two dwellings, I can bring this down to roughly 1200$ per month, meaning I'm saving 300$ by living there. This is more of a value-add than a true cash flow position.

For actual cash-flowing properties, you have to look outside of the hotter markets (the ones you listed and downtown/Plateau/etc.). Even areas like Anjou and Lachine are starting to become very expensive. I would look towards Pointe-aux-trembles/Mercier/Longue-Pointe for cheaper areas at this time where you might be able to find a deal that you could cashflow after significant renovations. The same can probably said for Longueuil if you're hoping to stay near the subway line. Alternatively, you`ll have to look outside the island and the two surrounding areas for a serious discount on the purchase price of the property. Whether they`re a good place to invest for buy and hold is another story... I would look at Centris stats for information on the market (demographics growth/shrinking, ownership, average age, etc.) for any red flags for rental.