Long Distance Deal or Fix & Flip Condo

[Binh T.]

Hi BP,

First time posting. We live in an expensive market (Vancouver BC area) and recently took the plunge and bought a rental condo in Coquitlam. The good news is we were able to get a tenant right of way, but the bad news is that it doesn't generate positive cash flow. We knew this going in and we're counting on property appreciation for ROI. We have some fund left from our refinancing and we're deciding on how to get our next deal. We have two thoughts. First, long distance investing in cheaper markets. We heard Moncton, NB is a good choice but even that is getting hot. The cashflow looks great, but the thought of long distance is scary but we know it can be done. Second option is to fix and flip a condo in the Vancouver area market and target 10% - 15% ROI. Is that realistic? Open to feedback and suggestions. Thanks!

Binh

[Roy Cleeves]

You may find it harder to find a hood fix and flip whereas you could find the cash flow property in New Brunswick quicker.  And as you said -Moncton is having good appreciation in prices as well.   Good luck. 

[Chris Baxter]

@Binh T. I know of people that fix and flip condos locally; they target up the valley (Chilliwack, Hope, etc.) and also Langley.  They can generate $20-30k per flip doing most of the work themselves.

I personally invest in other markets (Moncton included) and investing at a distance isn't scary at all when you build solid relationships.  As you've noted, though, the market there is currently crazy (perhaps unsustainably so) as people are overpaying for properties with cheap money.

[Jason Dasanjh]

Hi Binh

I am sort of in the same situation as you. I live in Surrey and cashflow properties are getting harder to find. That being said you can find condos in the Valley that still cash flow ( I just bought in Chilliwack). If you look you should be able to find cash flow and will hopefully see some appreciation in these markets. I would suggest looking for a 2 bedroom unit which should rent more easily. 

All of my properties are single family home and condos. I too am looking out of province and something with more doors.

if you would like to connect feel free to pm me. Best of luck.

[Binh T.]

@Chris Baxter@Jason Dasanjh 

Thanks for the feedback. Absolutely agree with Langley and Valley areas as a good place to start. We're targeting area that are close to public transportation or along the future skytrain line. Given the WFH trends, we think 2 beds ground floor units will probably be more desirable.