Quote from @Stevo Sun:
Quote from @Jai Kalsi:
Hello Everyone,
I have $100,000 available for downpayment. I live in Abbotsford, BC, and looking to get a house in Calgary.
The goal is to have a positive cash flow of around $500-$1000 every month. Looking for a house with a basement. The budget is in the range of $450-500k. The monthly mortgage payment would be $2500+ 150 (property tax)
2 months ago the plan was to get a property in Vancouver downtown and run it as Airbnb as it is closer to my house. But thank god I didn't buy a property there as recently the law has been changed by which we can't do Airbnb anymore except than our primary residence.
Is anyone doing something similar?
Or is there any better idea than this? I am open to exploring more options.
Any advice would be helpful. Thanks.
I would be quite impressed if you found a property in Calgary that can generate that much positive cash flow right now. A house in the 400-500k range usually rent for 2500 or so. Our rents in Calgary are much lower than what Vancouver is.
Also assume your house is assessed to be 450k for property tax purposed then your tax would be around 2800 annually which is 200+ a month. Your insurance maybe another 100 or so.
So mortgage 2500 + tax 200 + insurance 100 + management 10% of rent (assume you need this if you are out of town?)
You are probably looking at 3,000 cash outflow a month. To generate a 500-1000 positive cash flow, your rent would need to be 3,500 to 4,000. That is quite high for the Calgary market.
Absolutely @Stevo Sun!!! And you didn't even added the other expenses as vacancy, R&M, Capex... that expected cashflow for that price range of property seems, to me, very unrealistic for today's Calgary market, for long term rent strategy at least.
