HELP! Stuck after first deal

[Roman Singh]

Hey guys, So I’m exploring options to do my second deal and would like input from the community. To start out I’ll let you guys know my current situation. I’m 22 going to university full time in Toronto and working part time. Last year I found a good deal with a partner on a condo downtown that breaks even with 5% down. I want to get a second property NOW instead of waiting and making excuses. My current plan is to find a deal outside of the city get short term financing and have a family member co sign for the refi. Is this a viable plan? Any alternative suggestions? Thanks for your time!

[Phil Gardner]

I don't think the GTA is as hard to cash flow as many people think. My entire management portfolio is small multi-family in Toronto and I can say pretty confidently, barring any high cap-ex years, they all cash flow well. The Toronto rental market is absolutely nuts and the extremely high rents & the rate of market rent increase keeps the numbers working here.  

I recently finished a light reno on a 2-unit semi in Toronto @ Rogers & Caledonia. Purchase $590k, rehab $35k. Gross rents $4800/mth. It may not meet the 1% rule but it does cash flow VERY well. 

You could consider house hacking a similar style of property since you're within the city, it would help out with financing since you'll be living in it, and if you lived in the cheaper of the units in a lot of cases you'll live for free or very close to it. Just some food for thought! I'm a big fan of Toronto rentals, and keeping your portfolio close to home as you start.