Ramifications of Buying RE property in Canada

[Gulliver R.]

I live in the UD and I was looking at buying an investment property in Canada, but I would continue to live in the US. (a) Can I do this? (b) What are the tax, legal, whatever else ramifications of owning Canadian RE? Thanks!

[Chris Baxter]

Another option is to form a Canadian corporation and use it to purchase your properties. If you invest in MF (5+ units) or other commercial properties, you can access commercial loans with a personal guarantee. In Canada, you typically need a net worth of (25% of the value of the property +  down payment) to qualify for a commercial loan. 

A solid read on investing in Canada is "Legal, Tax & Accounting Strategies for the Canadian Real Estate Investor" (Cohen and Dube).

If you are willing to go cross-continent, there are markets with excellent cash flow, especially in MF properties.