Next up and coming market(s) for BRRRR in Canada?

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Next up and coming market(s) for BRRRR in Canada?

Jason Park
New to Real Estate · Vancouver, BC · Member since 2020 · 7 posts · 5 votes

Hi everyone! Newbie investor here.

Hope everyone's having good holidays despite the pandemic.

My name is Jason, and I'm a resident of BC looking to put a foot into REI, particularly via BRRRR strategy.

Besides having recently purchased a townhome (primary residence for my family) in Port Coquitlam, listening to RE podcasts including biggerpockets to and from work in the car, and having read couple books, I would say that I know very little regarding REI.

I figured I would join the community to connect with people and learn from those who have walked the walk.

I learned about the BRRRR strategy, and on paper, the mechanics make sense to me. But I find that I would need to first find target markets where the numbers would work out. Definitely not where I live, Vancouver, where 1% rule is just a fantasy (I think it's more like 0.1% in Vancouver).

I have a couple friends that have been actively doing BRRRR in Moncton, New Brunswick, but now I think people have caught on as they tell me that it's been getting progressively more difficult to find properties with good numbers.

So I have looked around the forum and a few places that have come up are:

1. Vancouver Island - Duncan, Port Alberni, Campbell River

2. Calgary

3. Edmonton

4. London

5. Barrie

6. Sudbury

7. St. John

I would prefer to invest near home and stay in BC. Also since it would be my first rental property, I was looking at either SFH or MFH. Eventually I would like to get into MF, but I wonder if it would be better to start with something smaller in scale and eventually move up.

However, beggers can't be choosers! If there are good opportunities in Canada, I'm willing to follow.

If anybody could give me a lead, it would be much appreciated. Better yet, is there anywhere I can go look for information and do independent research? Also, I would be happy to connect as well.

Looking forward to hearing from you all!

Thanks,

Jason




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Jason Ridout
Rental Property Investor · parksville, bc · Member since 2017 · 153 posts · 148 votes
5y

As @Evan McLeish mentioned, Prince George is a good option if you want to keep it in BC and want decent cashflow. Rents are fairly high and housing prices are still somewhat affordable. I own a few houses up there and they've all performed well, but just like everywhere else in North America, prices are climbing.

Many people are finding places across Canada to invest, including the east coast and Alberta etc. The cashflow can be appealing, but I question the long term sustainability of some of those places. If people have a choice, they'll choose mild climates, which is the lower mainland or Vancouver Island. East coast winter weather isn't appealing, either is Alberta for that matter. Huge percentages of Canadian plan to retire in BC. That means they'll be leaving other provinces and heading to the west coast. That puts demand on rental and housing ownership on the West coast, but a possible reduction of demand for those things elsewhere. Now that people can work from home, even more people are moving to the West coast. The majority of clients I help are from Alberta or the lower mainland.

If I lived elsewhere in Canada, I'd probably invest where cashflow is good, but because I live on the west coast, I'm going to focus on taking advantage of the fact that the West coast is the most desirable place to live in Canada. I think demand for real estate on the West coast will reduce the effects of any looming recession. If oil doesn't rebound, Alberta could be in trouble as the major draw there is high paying jobs. The draw to the East coast is simply that it's cheap. Cheap isn't a good selling point if no one wants to live there.

That's just my opinion. Lots of people are doing well investing all over Canada. I just think Vancouver Island and the lower mainland will be very desirable for many years. Seeing as how the lower mainland is very expensive, I'm focusing on Vancouver Island.

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28 Replies

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  • Dayyan Misaghian
    Rental Property Investor · Vancouver, BC · Member since 2020 · 11 posts · 1 vote
    5y

    @Jason Park

    Hi Jason,

    Im also from Vancouver BC looking to get in.

    I’ve done some research on saint john NB would love to have a chat.

    0Reply
  • Evan McLeish
    Prince George, B.C · Member since 2018 · 22 posts · 8 votes
    5y

    Hey Jason , I do BRRR in Prince Geor ge B.C. The rents are good and the market is going up.

    Reach out on facebook if you like to chat

    2Reply
  • Justin Crawford
    Real Estate Agent · Courtenay/Comox · Member since 2018 · 19 posts · 8 votes
    5y

    Hi Jason, I'm an investor and agent specializing in real estate investment in the central Vancouver Island area. Let me know if I can be of help to you. 

    Justin

    0Reply
  • Jeff MurrayPro Member
    Property Manager · Saint John N.B · Member since 2020 · 36 posts · 10 votes
    5y

    New Brunswick in general is getting tough right now. The key is to have a really good agent that is willing to work to find you those off market deals. 

    2Reply
  • Jason Park
    OP
    New to Real Estate · Vancouver, BC · Member since 2020 · 7 posts · 5 votes
    5y

    @Dayyan Misaghian Good to see a fellow vancouverite on this forum! Would love to connect and chat about the NB market. Have you looked anywhere else?

    1Reply
  • Jason Park
    OP
    New to Real Estate · Vancouver, BC · Member since 2020 · 7 posts · 5 votes
    5y

    @Evan McLeish

    Hey Evan, thanks for the heads up. Are you a local in PG? Couldn't find you on Fb so sent you a 'connect' request! Would like to hear more about PG market.

    0Reply
  • Jason Park
    OP
    New to Real Estate · Vancouver, BC · Member since 2020 · 7 posts · 5 votes
    5y

    @Justin Crawford

    Hey Justin, thanks for reaching out. Would love to connect with you. Sent you a PM!

    0Reply
  • Jason Park
    OP
    New to Real Estate · Vancouver, BC · Member since 2020 · 7 posts · 5 votes
    5y

    @Jeff Murray

    Yes. I heard that good deals are flying off the shelves right now. Would you have any good agent recommendations?

    0Reply
  • Dayyan Misaghian
    Rental Property Investor · Vancouver, BC · Member since 2020 · 11 posts · 1 vote
    5y

    @Jason Park

    I do know a few places in Ontario do well.

    Send me a msg we can talk more.

    0Reply
  • Jason Ridout
    Rental Property Investor · parksville, bc · Member since 2017 · 153 posts · 148 votes
    5y

    As @Evan McLeish mentioned, Prince George is a good option if you want to keep it in BC and want decent cashflow. Rents are fairly high and housing prices are still somewhat affordable. I own a few houses up there and they've all performed well, but just like everywhere else in North America, prices are climbing.

    Many people are finding places across Canada to invest, including the east coast and Alberta etc. The cashflow can be appealing, but I question the long term sustainability of some of those places. If people have a choice, they'll choose mild climates, which is the lower mainland or Vancouver Island. East coast winter weather isn't appealing, either is Alberta for that matter. Huge percentages of Canadian plan to retire in BC. That means they'll be leaving other provinces and heading to the west coast. That puts demand on rental and housing ownership on the West coast, but a possible reduction of demand for those things elsewhere. Now that people can work from home, even more people are moving to the West coast. The majority of clients I help are from Alberta or the lower mainland.

    If I lived elsewhere in Canada, I'd probably invest where cashflow is good, but because I live on the west coast, I'm going to focus on taking advantage of the fact that the West coast is the most desirable place to live in Canada. I think demand for real estate on the West coast will reduce the effects of any looming recession. If oil doesn't rebound, Alberta could be in trouble as the major draw there is high paying jobs. The draw to the East coast is simply that it's cheap. Cheap isn't a good selling point if no one wants to live there.

    That's just my opinion. Lots of people are doing well investing all over Canada. I just think Vancouver Island and the lower mainland will be very desirable for many years. Seeing as how the lower mainland is very expensive, I'm focusing on Vancouver Island.

    3Reply
  • Jeff MurrayPro Member
    Property Manager · Saint John N.B · Member since 2020 · 36 posts · 10 votes
    5y

    @Jason Park Milad Debly, Tammy Harley, Tim Sommerville in Saint John are all really good. Art Dadson in Moncton is also really good. 

    0Reply
  • Jordan Perry
    Banker · Nova Scotia, Canada · Member since 2018 · 83 posts · 59 votes
    5y

    Hey Jason, 

    Yes, properties in New Brunswick are in high demand right now but if you keep your ears to the ground there are always deal to be had! I myself purchased 2 properties this year, one in Saint John and one in Fredericton. 

    If you would like to chat more about the New Brunswick market, feel free to reach out to me anytime. 

    0Reply
  • Anibal Mejias
    Rental Property Investor · Toronto, ON · Member since 2019 · 29 posts · 4 votes
    5y

    @Jason Park we use Tim Somerville from Saint John, NB. He’s been really good to us. Knows the market and all areas of Saint John.

    0Reply
  • Jason Park
    OP
    New to Real Estate · Vancouver, BC · Member since 2020 · 7 posts · 5 votes
    5y

    Thanks for such good recommendations, much appreciate them!

    0Reply
  • Account Closed
    Member since 2019 · 1k+ posts · 1k+ votes
    5y

    @Jason Park

    If you’re gonna get in down east, get in now. You’ve got about 18-24 months to take cash off the table out there. Sask and Alberta are long term holds. Manitoba is a no unless you’re into that sorta thing. Generally it has (and always will have) absolute minimal appreciation but no major dips or spikes. Ontario is currently a dumpster fire of uneducated landlords getting absolutely demolished by professional tenants. Quebec is so intensely reliant on government employment (but, also gets catered to by federal government no matter what flavour because there’s nearly 80 ridings there). BC will always have a couple desirable areas but personally I’d stay away from the okanagen as it seems to be getting a little senior citizen heavy. Anything west of a Great Lake (excluding lower mainland) that is a condo is a very bad idea currently also as western Canada in its entirety is massively overbuilt in that asset class.

    And the asterisk on all of the above is that you’re not buying a category, you’re buying a specific property on a specific street, in a specific neighbourhood and city. And exceptions exist to everything I have said.

    0Reply
  • Melanie Dupuis
    Investor · North Bay, Ontario · Member since 2019 · 221 posts · 99 votes
    5y

    @Jason Park you can utilize the BRRRR method anywhere! It's not the location, it's the deal and the asset itself. I suggest picking a market, and then finding the deals you can BRRRR in that market.

    0Reply
  • Zorya Belanger
    Rental Property Investor · Edmonton, Alberta · Member since 2015 · 307 posts · 200 votes
    5y

    Hi @Jason Park

    Sounds like you kinda know what you want to do but are making sure you aren't missing out on something. You're not - there are deals everywhere and I believe you are better off doing BRRR somewhere where you can actually visit easily, not on the other side of the country. I'd go with that initial idea of doing BRRR close to home and starting with SFH. Like Melanie said, its not so much about the location, its about picking a decent market and finding what works in that market. I invest in Alberta, and that's a lot to do with the fact that I live here, and can go see the property I'm buying easily, and its easier to be more in tune with the market where you live, and that helps make decisions. I feel that's really beneficial for a BRRR strategy. It's a harder if you need to always rely on someone else.

    1Reply
  • Max McPeak
    New to Real Estate · Edmonton · Member since 2020 · 4 posts · 2 votes
    5y

    Looking to get involved in the Edmonton market. I see a great opportunity particularly in the mature neighbourhoods west and south of the city (Grandview, Glenora, Westmount, Westbrook). If there are any BRRR investors around looking into the Edmonton market. I would love to connect.

    1Reply
  • Howard Ma
    Member since 2021 · 3 posts · 0 votes
    5y

    Being from Vancouver, would love to connect with someone who has invested in Prince George long distance. Would like to share knowledge as I've never entered the market there before. I have multiple properties on Vancouver Island, and the Lower Mainland and am looking to expand up north!

    0Reply
  • Jason Ridout
    Rental Property Investor · parksville, bc · Member since 2017 · 153 posts · 148 votes
    5y

    Hi @Howard Ma, 

    I live on Vancouver Island and have a number of properties in Prince George. Prices are still decent up in PG and cashflow is decent. 

    However, I find I've be able to generate the same ROI on Vancouver Island even though prices are higher due to the very low vacancy rate, better appreciation and being local allows me to run a tighter ship to increase efficiency.

    Fell free to reach out if you have any questions.

    1Reply
  • Kaitlyn Herbst
    Member since 2021 · 1 post · 0 votes
    5y

    Hey Jason,

    I also live in Metro Vancouver and have been thinking the same thing with the high prices and rent controls. As an agent myself I know there are deals out there, they are just becoming more and more rare. My family has been actively investing in the area for years an has tried other markets with a bit more success on the Island and up north compared to further away (in our case the US). I would love to meet up to discuss options as I still feel there are opportunities especially on the Island and some parts of the interior but would be open to hearing what you have learned about Eastern Canada because the prices are just so enticing! 

    Cheers

    Kaitlyn 

    0Reply
  • Wendell Fong
    Investor · Vancouver BC · Member since 2020 · 88 posts · 60 votes
    5y
    Originally posted by @Jason Ridout:

    Hi @Howard Ma, 

    I live on Vancouver Island and have a number of properties in Prince George. Prices are still decent up in PG and cashflow is decent. 

    However, I find I've be able to generate the same ROI on Vancouver Island even though prices are higher due to the very low vacancy rate, better appreciation and being local allows me to run a tighter ship to increase efficiency.

    Fell free to reach out if you have any questions.

     Hey Jason,

    Who do you use as a property manager in Prince George? Do you own any commercial property? I am looking at a potential investment in PG. 

    0Reply
  • Jason Ridout
    Rental Property Investor · parksville, bc · Member since 2017 · 153 posts · 148 votes
    5y

    Hi @Wendell Fong, I use Maxsave property management. They're adequate. I'm not super impressed with them, but they get the job done for the most part. 

    I don't have any commercial property in PG. Just 3 houses with suites.

    1Reply
  • Francesca Anastasi
    Member since 2022 · 2 posts · 0 votes
    4y
    Quote from @Dayyan Misaghian:

    @Jason Park

    Hi Jason,

    Im also from Vancouver BC looking to get in.

    I’ve done some research on saint john NB would love to have a chat.


     Did you end up investing in Saint John? Would love to know what you found out.

    0Reply
  • Francesca Anastasi
    Member since 2022 · 2 posts · 0 votes
    4y
    Quote from @Evan McLeish:

    Hey Jason , I do BRRR in Prince Geor ge B.C. The rents are good and the market is going up.

    Reach out on facebook if you like to chat


    I've been thinking of investing in Prince George. Do you find Prince George still a good place to do BRRRR?

    0Reply
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