Southwestern Ontario Cap rates

[Jim Noseworthy]

So I’ve been looking at house prices across Southwestern Ontario over the last month, and I’m trying to figure out some of the numbers. BP would suggest for a rental, to use the 1% rule. With house prices the way they are, and existing rents, it’s virtually impossible to get 1%. What number is everyone using for quick calculations?

Also, when it comes to cap rates, is 6-8% a reasonable level? Or should I be aiming higher still? Seems I might pass on a lot of properties if I continue to wait for the numbers to get better.

[Scott Innocente]

@Jim Noseworthy I would suggest not getting caught up in any particular "rule".  There are dozens of ways to make money in real estate investing and investors often make the mistake of making no moves until they find the perfect investment.  Great to see that you are writing offers, that's a great first step.  The only way to learn how to do something is by doing it.  Best of luck.