Looking for some advice on new pockets/regions in Ontario to consider purchasing a rental. As a little background, I currently own 2 rentals (Oakville and Burlington), but with prices rising so high so quickly it's becoming increasingly difficult to get approved for additional loans. I'm looking for "cheaper" pockets to invest my money in that will make it easier to secure a loan and ideally generate 0.6% monthly returns or higher. I've looked at Hamilton, but have concerns over the quality of tenant given many horror stories I've heard. Are there pockets in Hamilton anyone recommends? Any other regions in Ontario you have had luck with recently?
Investor · North Bay, Ontario · Member since 2019 · 221 posts · 99 votes
5y
@Kiril Nikolaev You definitely should! North Bay and Sudbury are great markets. The cashflow from our buildings allowed us to quit our full time job in our thirties!
Investor · Pickering, ON · Member since 2020 · 46 posts · 14 votes
5y
I've had good luck in St. Catharines. You might also want to check out Thorold and Welland. Good cash flow there. I've also heard good things about Brantford, St Thomas, Kitchener and surrounding areas. You might also want to consider far areas, such as Sarnia, Chatham-Kent, and Windsor. I always see good deals in those regions.
I am looking more into East of Toronto now since that's where I live. But if I were on the West-end, these are the areas I'd be looking at.
Really wish there were more wholesalers in South Eastern Ontario.
kitchener, ON · Member since 2018 · 9 posts · 2 votes
5y
What is your budget and what is your ideal investment? Single Family, Mulit-family, Short term rental, Vacation rental There is something available in every market. Just depends on budget and what you are looking to get for return and work put into the properties.
I've had good luck in St. Catharines. You might also want to check out Thorold and Welland. Good cash flow there. I've also heard good things about Brantford, St Thomas, Kitchener and surrounding areas. You might also want to consider far areas, such as Sarnia, Chatham-Kent, and Windsor. I always see good deals in those regions.
I am looking more into East of Toronto now since that's where I live. But if I were on the West-end, these are the areas I'd be looking at.
Really wish there were more wholesalers in South Eastern Ontario.
Right now I would recommend Welland, its actually the next city I plan to purchase some properties. Ive got 3 properties in Thorold, I sold the one I had in st Catharines. The markets are very hot here, Thorold's average property is over 500k but if you keep and eye out you can find deals. Welland is getting pretty hot as well but its not there yet.
Investor · Pickering, ON · Member since 2020 · 46 posts · 14 votes
5y
@Naipaul Sheosankar I am currently looking at Oshawa, Ajax, Peterborough, Lindsay, Uxbridge, and surrounding areas. Occasionally some deals come up. I am finding that these areas have some upside potential. Pickering and Whitby for example have recently appreciated extensively. So these areas are tougher to find deals in.
great Kiril , seems Durham is really price out now and tough to find deals, i am thinking PTBO and Lindsay as well, but tough to get legal duplex in these area from what i heard, i am ready to buy yesterday , but tought to get the right investment , keep me in mind .
Investor · Ottawa, Ontario · Member since 2015 · 2 posts · 1 vote
5y
Rob Break is a realtor in Oshawa who does property tours in Peterborough (virtual ones at the moment, I think) and helps investors find properties. He has a pretty good podcast called Breakthrough Real Estate. I can't post links but a google search will find him easily. For the record I haven't worked with him and can't vouch for him, I just like the podcast.
Rental Property Investor · Lynden, Ontario · Member since 2017 · 90 posts · 19 votes
5y
Brantford has been quite good for us. Our purchases so far in the last 3yrs:
8 bedroom Rooming house that we converted into 3 very nice apts. paid $285 in 2017
1200 SF bungalow (18 Mo. ago for $390,000) built a secondary suite in the basement with rents of $1700 & $1775 per month
1050 Sf bungalow 1 yr ago for $375,000 built a secondary suite in the basement$1625 & $1750 rents appraised at $540,000
Just purchased a triplex for $411,000. Going to do it up nice & refi out of it for another BRRRR. We'll charge big rents & hoping to get an ARV of $700,000 when done.
As for Hamilton & Brantford tenents, yes it is a difficult pool to select from. Diligence. Check every reference you can. We're still learning. Had to evict 2 units this fall because we didn't do enough due diligence. Not fun, but necessary. Just a blip in the bigger picture. However, as people are moving further away from the GTA (often COVID related) the tenant pool should improve as rentals become too expensive & the ones that can only afford cheap have to move on to different cities. Its part of being in a groundbreaking business. We price our rents as high as possible just to weed out certain types of people. Its not a guarantee but it helps.
Brantford is pretty good.
But a crazy market as last week we decided not to put in a price on another bungalow (for another basement suite). We were just too busy. Perfect house. Built in the 1960's, hasn't been upgraded since it was built. Listed for $399,000 sold for $529,000.
Good time to be an agent. Don't have to work very hard for your money.
Investor · Pickering, ON · Member since 2020 · 46 posts · 14 votes
5y
@Ralph Noack Those sound like great investments. They're very close to the 1% rule. These are similar types of houses I am looking for here East of Toronto. Seems like a good strategy to add a suite in the basement, rent, and refinance.
Investor · Pickering, ON · Member since 2020 · 46 posts · 14 votes
5y
@Melanie Dupuis I listened to the Breakthrough Real Estate podcast episode 93 where you talked about your North Bay investments. Very impressive. 8-11% cap rates seem much harder to come by in the South. I was hesitant to look that far, but may consider it with such good returns
Investor · North Bay, Ontario · Member since 2019 · 221 posts · 99 votes
5y
@Kiril Nikolaev You definitely should! North Bay and Sudbury are great markets. The cashflow from our buildings allowed us to quit our full time job in our thirties!
Rental Property Investor · Lynden, Ontario · Member since 2017 · 90 posts · 19 votes
5y
I would also like to suggest that perhaps the title of this thread may be a bit misleading. It is an entirely different matter to look for the cheapest investment than to find the most bang for your buck. I wouldn't want the properties that are the cheapest investments. I've looked at those. They're nasty. I want properties that produce really well for the money that I invest in them: the sweet spot.