Any Canadians investing in Florida on here?

Question

Hi BP community,This is my first post on the BP forums!I'm from Toronto (Canada) and I've been working part of the year in Florida. I started listening to the BP podcast and listening to BP audiobooks on my drives to and from work. I want to start investing in rental properties, but the Toronto housing market is INSANE. I'd like to invest in Florida, but I can't really find any resources on tax implications and other things I should be aware of as a Canadian investing in US properties. Yes, I've tried google, but I just read a bunch of articles from major newsletter that don't tell me much other than "the tax laws can be complicated". I don't know what I don't know and I would really appreciate it if someone can steer me in the right direction. I will begin as a long distance investor and keep my tax home in Canada (that may change in the future). I will not be house hacking these properties and will need to get a property manager. After reading The book on rental property investing, I've decided that I would like to begin investing in multifamily homes (duplex, tri, quad) and use the BRRRR strategy. I would like to get a mortgage or refinance the home if I pay in cash. Anything I need to know as a Canadian investor with this plan and strategy?Are there any resources, websites, articles, or books you could recommend me on this topic?

Any advice for me and anyone else in the same situation that may read this thread?Thanks in advance!

Larry Smet · Answer

Thanks @Eric Delcol

@Kash Mahdi, let me know if you'd like more info on the meetup that I run for Canadians investing in the US.  They run approximately monthly in Toronto and the  next one is this coming Monday.  More info on it here:

https://www.biggerpockets.com/forums/521/topics/534637-toronto-meetup-for-investors-in-us-real-estate-mon-march-5-2018

Darren Lenick · Answer

Hi fellow Canucks.

I’m a Canadian living in South Florida. We have dual citizenship so have the privelege of being able to make the move.

I lived part time in Orlando from August 2016 until July 2017 flipping houses with family who don’t live here, where I was the Project Manager and Property Manager. I used this time to learn the market and make connections with Realtors, contractors, subs and insurance people.

We decided to make a permanent move and sold our Thornhill home in August 2017 and moved to West Palm Beach.

We’re currently working on flipping a house in Apopka, which is just north of Orlando, and a house here in West Palm Beach.

If you have any questions about the market here I would be more than happy to answer where possible.

If you’re looking to “get your feet wet”, we’re open to discuss partnerships and private investment.

Paula Carvalho · Answer

My Name is Paula Carvalho, I am a Realtor in Clearwater, Florida.

I cater to investors who are looking for residential, commercial, rehab, flip, rentals and management of properties.  RMS Elite Properties has great history dealing with investors and managing their real estate portfolios. Should you need assistance please do not hesitate to reach out.  Thank you.

Omar Khan · Answer

@Kash Mahdi I was going to recommend @Larry Smet meetup but @Eric Delcol beat me to the punch.

Cross-border tax information is not readily available online. Apart from referencing the bbooks mentioned by Eric, I would add that you should consider if your underlying motives:

• Do you want to real estate returns? OR
• Do you want to own real estate?

For the former you can save yourself a world of hassle and participate through public REITs, syndications (what we do) and/or invest in real estate companies. These are more passive type investments which are popular with investors who want high returns without the hassle of finding, managing, financing and operating real estate.

For the latter, not only will you have to find the right deal (hard to do in the current market) but also find a good property manager (again, very hard if you just have a few units). Furthermore, your costs will be out of whack starting off i.e. not as high returns as you are expecting.

This doesn't mean the latter is bad or the former is good. That all depends on your personality type and needs.

If you want to know more about the basics of cross-border tax structuring you can PM me. I can give you a few examples of what our Canadian clients have done.

Either way, I would hire the best CPA you can find who's specialty is cross-border investing.

Larry Smet · Answer

Thanks Kash - I'll add you to the list.  Look forward to meeting you in April

Regards,

Larry

Kash Mahdi · Answer

Thanks @Eric Delcol,Just PM'd you! Thanks again.

Kash Mahdi · Answer

Hey @Larry Smet

I would love to join the meetup. I'm currently in Florida for work, but i'll be back in Toronto in April. Would love to join the meetup and learn more from everyone there. If you have a mailing list to notify past attendees, please let me know and I'll PM you my email.

Kash Mahdi · Answer

Thanks for the reply Eric.I have a RBC cross-border accountant and I have a regular BMO account. I also have a US SSN (for work). So, I got one part down.I see that you're an investor in Tampa. Do you have any referrals for a cross border accountant in Tampa that deals with investors?

Any Canadians investing in Florida on here?

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