Making Toronto work for investing

[Gurjeet Singh]

The only way I can see to have a good return is the BRRR strategy. Below is a recent project I did: Purchase price 20% down $860K plus renovation $200K = $400K upfront I created a duplex renting the basement for $1,650. Current living on the upper. Should rent for $3,500 for total = $5,150 My realtor estimates the value to $1.3M. Conservatively, I think it's more like $1.25M = $190K profit so 47% return. My min is $100 cash flow monthly so can pull $330K. Rinse and repeat.

[Thomas S.]

Toronto can never be made to work for buy and hold investors.

5K rent on a 1.3M property is a waste of time and money. Unless you can get a minimum 10K per month, which is impossible, the only way to make any money is to flip. Sell it now rather than rent or you will never be able to unload it. No one will pay 1.25M for a rental income of 5K and once you have a tenant getting rid of them will be nearly impossible. Plus a tenant will do considerable damage to the property resulting in you having to reno to sell.

Don't waste your time dicking around with being a landlord for those piddle numbers. It simply does not add up and your equity turns the property into a major negative cash flow.