All Forum Posts by: Stevo Sun

Of course, cashflow is after mortgage payment (interest and principal) vacancy, insurance, condo fees (if applicable) city taxes, utilities (if not paid by tenants) maintenance/repairs and capex

I don't think the 1% rule is easy to achieve in Canada and I wouldn't worry about that. However you should definitely worry about having a cashflowing property and that is definitely feasible and somewhat easy in Canada.I personally don't buy anything that doesn't cashflow minimum $500/month after all costs including repairs and capex and usually aim around $1000. In a market where appreciation is expected to be stronger I think it is ok to accept lower cashflow but I would never go cashflow negative and I think you should always have some buffer built in so that if rents go down (yes it does happen sometimes) you're still cashflow positive

Hi BP Canadian community,

I am researching my first property. I have been running analyses and looking at deals in Alberta and Ontario. I am mainly looking at SFR. There is one topic that truly puzzles me and I wonder what the experienced investors would say about the 1% rule. More specifically:

The purchase cost for A-class single home family is likely to be above $300k in today's market. 1% rule here requires 3k rent, which is not realistic unless we start to include a separate unit in the basement. Even then meeting 1% rule is still unlikely.

Do most Canadian investors forgo the 1% rule, put down 25%+ DP, and tweak operating costs to make positive cash flow?

Not sure if it's allowed to post property links here so I won't do that, but the cities I looked into so far are: Airdrie, Calgary, Edmonton, Cochrane, Saskatoon, London, Kitchener-Waterloo, Brantford,  GTA.

Thank you!

Hey Stevo, send me a link to the subreddit. I'd be interested.