Advice to finance my next deal - Newer investor / Canada

[Patrick Mooney]

Hi all! 

First off THANK YOU to all the posters on the BP forum. I only discovered the podcast + platform about 10 months ago and was immediately hooked! It's from reading your posts and listening to the show that I managed to get my act together and buy my first place in North America.

I recently purchased my first investment in Edmonton Canada, a duplex where I have rented out the other unit (Closed on 1st June 2024 / $475k CAD price paid / 5% down payment). It's an older property and I haven't made any improvements yet as it was in great condition.

I'm trying to expedite the process of moving on to my next deal, although I will very likely need to put down 20% this time as it will be an investment property rather than a house hack. I'm trying to figure out how I can best finance my next deal without having to wait for either:

- getting together 20% cash downpayment

- waiting 12 months until I can do another 5% down on my next house hack

I'm looking for buy and hold so from what I've read short term financing (eg. for a fix and flip) likely isnt the best for my needs.
If it's useful info I have access to ~$60k line of credit at about 9% a year, and another $35k in credit card credit available (although no suggesting I'd use this to finance a deal). Very high credit score.

I gather majority of people are in USA and not Canada, but definitely appreciate any input you might have for an newer investor looking to keep the momentum train moving along. 

Thanks again and happy Sunday!

[Patrick Mooney]

Thanks @Stevo Sun, appreciate the input! With the knowledge that there's likely to be a downward pressure on rent in AB in the coming years are you looking elsewhere? Or simply playing the waiting game for now?

@Theresa Harris that was a very helpful point, thank you. I have been in touch with the mortgage broker again after your comment and should qualify for another ~$300k CAD mortgage with 20% down. That wouldn't quite cut the mustard for the area(s) I'm looking to buy in (currently living in Strathcona and would ideally like to buy close by as it's a great location). So back to the drawing board it seems!

And thank you too @Anthony Therrien-Bernard, appreciate it!