2% isn't totally mythical, but you have to buy very discounted and not over improve.

(Located about 45 mins outside the GTA)1st Condo  = $120,000 CAD         2nd Condo  = $130,000 CADRent paid =  1000                           1000Expenses Condo Fees =    290                        290Property Tax=   100                        109Mortgage =        540                        590 Total =                930                        990This is a basic cash flow for the 2 properties I put together quickly and I believe rent could be increased as basement apartments in the area go for 850-1100 and condo's go for around 1100-1400. 

Income is strong, but there is opportunity to improve upon the current rent role with a few thousand invested in a basic clean up.At the risk of sounding like a total newby... 

Remember - you are investing, so none of your risk can be totally eliminated. 

What do the total revenues and expenses like? 

FHA also has a rule called “Net Self Sufficiency” meaning the total mortgage payment must be less than the total rental income on the property.

As far as someone said my area is a great place for rentals I totally agree!

@Dan Silverstone Your best bet might be a local community bank or credit union on their portfolio or commercial lending side.

@Tom Gimer  wow they must have done very well for themselves through the crisis.with our foreclsoures averaging 300 to 500k per that would be 10 to 15k just in auction fee's  we pay 2,500 to 4,000 total.. and its added to opening bid.. no commish on top

I have property that over the 15 years I've owned it, has one unit or another vacant for a month at a time, for a total of 4 months (over that 15 years).....and then another property where I get a month vacant every 2 to 3 years.