All Forum Posts by: Alex Kovalenko

Yes - we are looking for about an hour away from Toronto (Guelph and Hamilton) - both show some nice appreciation in the last few years (about 6-11% year over year). 

Do you mind explaining what you mean by "cashflowing properties" ? If we buy a condo at $400k, rent it at $1.8k, condo fees $400, property tax $300, insurance $50, mortgage at $200k at 1.99% at $850 a month - is that a good property to invest in? So we get $1.8k rent and spend $1.6k = so $200 positive a month and someone is paying our mortgage. So $2.4k year profit in rent (almost no income tax to pay on the rent), and possible appreciation of say 5% or $20k).

So we are putting up $200k of our own money to get a $22.4k a year profit or 22.4/200k or 11.2% percent. 

What do you think?



Originally posted by @James Ma:

Great to see so many fellow BC investors here! It's definitely hard to find good cashflow properties in BC and Ont but there are some close to the major cities where people typically like to buy - just look maybe an hour drive out from the major cities and you can usually find some cashflowing properties which I like the best since it mitigates your risk. They may not bring in too much cashflow though compared to US properties, but at least will cover mortgages and expenses when occupied so even if the value of the home drops, there isn't much concern as long as rents stay up (which they have even in COVID and a slowed recent market).

I also like there's much greater appreciation potential in these provinces than in other provincess

Appreciate your wise comments! 

Few questions:

#1. Would you mind elaborating on: "I would try to get a single family house, that you can turn into a duplex out there." You mean get a house for $500k in Guelph for example, turn it into 2 entrances , and charge try to charge up to $5k in rents (1%) - I guess $3k for 1 and $2k for another? How would you split up a house like that? Or what kind of house would you need to get? Can you show me an example on housesigma or realtor?

#2. Would you mind elaborating on "newer property" - any property built since 2000? 2010? 

#3. Would you mind elaborating on "look at the status certificate and the reserves" . What specifically would we need to take a look at? If a condo costs $400k and we rent it for $2k and condo fees are $450 a month, property tax is $250 a month - is that super bad? 

#4. What about new townhouses? You can get one for 10-15% more than condo and rent it out for a bit more. But HOA is around $200 

Thanks for your help!


Originally posted by @Elizabeth Kam:

Dear Alex,
Most people who have made a killing in Buying condos in Toronto have done so mostly by appreciation (not guaranteed) and/or short term rental.
Many of the short-term rental units have now turned into med/long term rentals, this increasing the supply of units and bring the rents down. And given that our borders are still closed, our immigration rate is much lower than in recent years, therefore demand is down. I wouldn’t buy a condo in Toronto right now.
But you mentioned Guelph of Hamilton, both about an hour from Toronto. I would try to get a single family house, that you can turn into a duplex out there. There could be some motivated sellers (Those who currently own student rentals), but they’ll need work. You probably still will not get 1%, but it will probably be cash flow positive. And you won’t have to pay two land transfer taxes.
But if you are dead set on a condo, I would look for a newer property. They usually will be less maintenance and lower condo maintenance fees. But the unit will also be smaller. Make sure you look at the status certificate and the reserves. Some condos fees includes utilities and some include only some utilities. Always stay close to transit.
I hope that helps.
Liz

Originally posted by @Account Closed:

Hi Alex, 2% rule is a fantasy in Canada (At least, i haven't seen anything close). shoot for 1%, which will still generate cashflow. 

here's an example of a good property i recently put an offer on (offer was rejected because they had a better offer from someone else). i offered 265k. 

https://www.centris.ca/fr/multifamilial~a-vendre~windsor/20030446?view=Summary

38760 (Gross rent) divided by 12 = 3230

3230/265000 = 1.2%  so its slightly better than 1%. and this is probably one of the best i've seen lately in my area (sherbrooke, quebec). 

Originally posted by @Adam Narbon:

Hey Alex. You need to speak to someone from Toronto about this.  Not B.C.!

I’ve made a killing in condos and continue to invest in them. 

What kind of properties are you buying in Hamilton? I live in Oakville and would like to buy a rental property in Hamilton or Guelph. 

Originally posted by @Thomas Lorini:

I invest predominately in Hamilton Ontario. Deal are getting harder to come by but still around. Just takes more time. When I say deals it's not comparable to many US markets but you can still find decent cashflow.