Toronto Condo Investment

[Ian Ramos]

I'm interested in purchasing a condo in Toronto and renting it out. I don't have much experience with real estate investing. Is this a bad idea? Is there a more viable option to get my foot in the door?

[Eric Delcol]

It could work but it'd be tight.

Rent in the area for 2bed $1,800

Mortgage @ 20% $890

Condo fee $550

Taxes $100

Insurance $50

Management $100

= $60 profit / month

Now, that's provided you have a $60K down payment.  

That $1800 rent is also a bit iffy.  There doesn't seem to be any amenities - no pool, no gym, no billiards.  The only thing the promo page boasts is it's proximity to the subway.  Also, the above doesn't allow for vacancies and other misc expenses which you will most likely have at some point.

To your question "is this a bad idea".  Not in the least - if you do your homework.  Condo rentals are a great way to get your foot in the door, learn the industry, and if you've done your research, make a bit of money.  Be aware, the Toronto condo market is huge.  You will have a ton of competition.  If you can differentiate yourself somehow you'll have a shot.