Are You Looking To Become A Real Estate Investor?
Where Do You Start What Should You Be Looking For?

Before we start looking for a great investment we need to answer a few questions:

  • 1. What kind of investor are you?
  • 2. What is your main investment goal?

Before we get into answering those two questions we need to answer when is the best time to buy an investment and is that time now?

Well, the simple facts are that home prices in the GTA have fallen roughly 20-25%, while at the same time rent prices have increased by 20%-30%. So you tell me, does that sounds like a good opportunity?

But Ivaylo, interest rates are much higher which makes my monthly payment higher. Absolutely, and that's true, but we all know that these interest rates are not going to be this high forever, in fact we will see interest rates start coming down at some point next year however you would have still purchased your investment at a 20% discount from the peak.

But enough that, let's get back to answering question 1, what kind of investor are you?
Are you the type of person that is ok dealing with tenants? What about multiple tenants in multiple units?
Are you the type that doesn't want to deal with any tenants, maybe you are looking to buy, renovate and flip a property?
Are you a contractor or know a contractor that can get renovations done at a cheaper cost?
Are you looking for a longterm hold or a short term investment?
Now, question 2. What is your main investment goal?
Well Ivaylo, I want to make money. I hear you but are you buying an investment for appreciation or cash flow?

In an ideal world you would get both great appreciation and also cash flow positive.

However, with how high GTA prices are unless you are putting 50% or more on a downpayment there are very few single family homes that will cashflow positive.

So what are the options. In most cases you will see the highest appreciation in single family residence or duplex homes, however you might be just breaking even depending on how much money you put down or be cashflow negative.

If you are looking to be cashflow positive we can look into multi unit complexes, maybe start off with 4 units and move your way up to 8, 10 or more.

In most of these cases you will be cash flowing positive with less appreciation and more tenants to deal with.
To offset that problem, if the numbers work we can hire a management company.
At the end of the day the really important questions is: Do the numbers make sense?
Do you know how to check if the numbers make sense? If you don't ... we do!

We use our own property analyzer to check if all the numbers make sense and see what your cap rate on each property can be.

We have helped many clients make sense of their investment using our property analyzer so if you are looking to get an investment the only thing you need to do is pick up the phone and give me a call and I will do the rest.

An Experience Worth Talking About