All Forum Posts by: Alex Kovalenko

My numbers are : $200k downpayment on $400k house (in Canadian $)

expenses:

mortgage $900 a month

Property tax: $250

Insurance: $150
Water: $40
Misc repairs: $250

revenue:

$1,600 a month 

----

$1,600 - $1,590 = $10 cash flow or breaking even.. 

So it seems in Toronto area its impossible to be cash flow positive

Thanks guys! I was calculating with more generous down-payment and around $700 mortgage. But I assume when you talk about cashflow you calculate it based on 20% downpayment and not higher. 

Thanks Josh and Matt

Thanks for feedback. What numbers would work? I heard the 2% rule all the time but where I live toronto cheapest properties would be in Hamilton and go for around $200k usd ; rent would be $1.1k usd for that property. We can get $350k usd house and maybe rent to 2 tenants (1 basement say for $600 usd and 1 main for $1.5k)

Yes Samuel - same feeling.. House would appreciate - you can still snatch up a house with a lot of land in Hamilton for around $300k ($200k USD) - and it's only 20 min to Mississauga, Oakville, Burlington and 40 min to Toronto.  

Thanks Kris and Chris! I am running the numbers and coming up anywhere between $300-$800 a month positive cash flow.. resulting in about 3%-4% annual return on investment (without taking appreciation into account).

Good / bad? Or what # should I be looking for in return? I am out of Toronto area (and looking for properties 1 hour out - Hamilton, Guelph, Niagara, etc.) Thanks!

Thanks Chris! What cash flow would you be looking for? $300+ a month is OK? 

Hey sorry if this question gets asked 200 times here .. but here it goes.. 

Is it better to buy a run down (ie 1960s built) 3 bedroom, 2 bath house with minor renovations at $400k-$450k and rent it for $2k or new condo (2 bedrooms, 2 bath) $400k-$450k and rent it for similar $2k. 

The house would probably require $30k-$50k renovations and is in OK neighbourhood with not so great schools; while condo is in good neighbourhood with great school systems.. but has $500 condo fees a month.. 

gut feeling is that house would be better down the road (as it has a lot of land).. but i also feel like condo would be much easier to rent that a run down house.. i only see a few similar houses rented vs dozens of condos being rented every month

photo example of 2 bedroom $440k condo vs 3 bedroom $440k house

If you are working with real estate agent and have come across open house at a new construction - do you involve your agent or new construction go direct only? The agent did NOT show us this new construction.

Thanks!