Getting Started : Looking into Real Estate Investment in Calgary

[Ifeanyi Okafor]

Hello RE Gurus,

Hats off to all the guys here who have given useful advice to newbies like me. This is my first post here and hopefully, I'll get some meaningful advice too! I recently got my Canadian permanent residence (Calgary). I'm looking to get my feet wet in REI. At the moment, I have an engineering job that pays me pretty well outside Canada. For this reason, I haven't really fully relocated to Canada. In the next 1 or 2 years however, I should be fully settled in Calgary. Here comes my question.

I have about 35k liquid cash on me for REI and I would like to invest now that prices are low (as i heard) due to the oil price drama. I'm kinda like total newbie (well, I've read the biggerpockets beginners guide to REI ebook if that counts . . lol). I was initially thinking of buying a condo to rent but then after all the analysis and remarks about the infamous condo fees. I decided to look more towards single family homes, duplexes, half duplexes etc. However, one major bottleneck that I have is that I don't have any credit history here in Canada. The little research that I've done seems to show that I'll need to drop 35% if I don't have a credit history. I wonder how recent immigrants get around REI if this is the case.

Anyway, I just want to get my first rental property that 

0) Will be finance-able with the money I have and the mortgage facilities available to me :)

1) Will be less prone to vacancy (always rented).

2) Will generate at least enough money to cover all expenses (all things being equal) even if it does not yet generate significant positive cash flow.

3) Will appreciate over time.

Gurus. . . any advice will be appreciated - especially relating to the Calgary real estate market.

[Cal Ewing]

Hi @Ifeanyi Okafor 

Welcome to Bigger Pockets, welcome to real estate and welcome to our great city. 

I would agree with the comments of both Michael and Lyall above. There is definitely ways that you can make deals work in Calgary given your current credit situation. Partnering with someone who has good credit is an option. Things are starting to look more favorable in Calgary right now as we experience the results of low oil prices. 

As Lyall stated, there is opportunity abound in the US as well. This is the path I have chosen to take. There are opportunities to buy rentals in the US with the cash you have and there are some financing options available to Canadians. 

Either way, you have come to the right place in terms of getting advice. There are people on BP making both strategies work.

Cheers,

Cal