first Purchase in Toronto, next steps....

[Kyle Good]

Hi BP community, this is my first engagement on the forums. I've listened to many of the podcasts and I'm looking for some guidance for the Canadian (Ontario) real estate market. Any help would be appreciated and I welcome any brutal honesty. 

I purchased a home in the Toronto (Beaches) and would like to plan my next move.  

In my mind:

Option A: use my 50k HELOC + 60K savings to fund basement reno (1 bed rental).

cash flow "immediately" $1400/m (excluding expenses)

In future... rent main floor (3 bed) for $2800

$1400 (basement 1 bed) + $2800 (upstairs 3 bed) = $4200 (excluding expenses)

(note: Mortgage is $2800/m)

pros: no travel, increasing density/existing squarefootage, proximity to Toronto, high ROI (15%), money back in 6.5yrs

cons: no leverage or debt pay down on second property,  

Option B: use 50k HELOC and 60k savings for a downpayment on a 500k-600k du/tri outside of the city. Cash flow might be $100-400

pro: leverage, greater (potential) return on appreciation of 2 properties, debt pay down on second property, step towards a larger portfolio

con: travel distance, highly leveraged, property management, low ROI (3%), money back in 36 years.

Option C: something I'm not thinking of? 

Thanks. Happy to grab coffee with someone to go over options in more detail, partnerships are always an option. Finding deals... use an agent? MLS? Basement reno's/underpinning in 100+ yr old homes? What's your experience?

Thanks!

Kyle 

[Roy N.]

Option C1: Find yourself a partner some distance away from the Big Smoke where 600K will buy you 6+ units and the property will cash-flow 600+ / month.