All Forum Posts by: Renee McGrady

@Hai Loc thanks for your reply. And I agree, 15% was low. Would you say 30% is more realistic? 

Hi everyone,

I’m exploring short term rentals in Ontario cottage country, within about 2-3 hours from the GTA for my first rental property. There seem to be some deals in 4 season cottages that would be cash positive if rented short term on Air BNB or VRBO. Would be more work but could be worth it for a few years to get into the market.

A very high level example:  

600,000 purchase price (or 550 + 50 reno)

20% down (120K)

Mortgage for 480K, 30 yr @ 2.99 = $2016/mo

Let’s say total monthly expenses are $2800

2800 x 12 = 33,600 annual operating expense

150/night x 365 = 54,750 (150 avg, higher in summer, lower in off season)

• 15% vacancy (8,212.50)

= 46,537.50 - 33,600

= 12,937.50 annual profit or 1000+/month 

Who is having success with this? What areas are best for 4 seasons? Can anyone recommend realtors or property management that specialize in short term vacation rentals? Anything I’m missing here??

Really looking forward to hearing from those of you making it work in Ontario’s market.

Thanks in advance,

Renee

Thank you @Ming Lim for offering your experience! I live in Toronto and I’m looking at starting with a student rental for my first investment. I’ve considered either Oshawa or Hamilton, hoping to find a cash positive opportunity. I wonder if you think this is a good way to start out? I have about $400K equity in my home and want to use 80% towards a down payment for the rental. I have the income to support it. My other thought is to invest close to home in an area I know. I live in the west end of Toronto and there’s 3 new condos going up all within 5 minutes from my place (west st clair w, near the stockyards). 

What would you do with my financial situation? Am I on the right track with student rentals or a condo in the west end of the city or is there something else you would suggest that’s more favourable?

Thanks in advance and really looking forward to hearing your thoughts!