First time investor in ON. Suggestions?

[Londonworks]

Hello folks. I came across this forum when looking for info on how to "get started" (I will explain below why this is in quotes) and have since started reading and reading and reading.. wow - a LOT of fantastic info being shared here.
In a nutshell, Im a first time investor in Canada, however I currently own properties in the USA and have a complete turn key solution already set for those properties. Now that Im starting to look for a similar structure here in Ontario, I will need some professional assistance.
Plan is to create additional income, as Im not focused primarily on appreciation. Ideally I could purchase between 1-4 properties over the next few months, and the total budget available is around $700k.
So I started checking some listings in London, Sarnia and Windsor and came across some listings that seem almost "too good to be true". Since Im not experienced here, I thought I would ask : anything in particular that I should pay close attention to, when looking into these deals in smaller cities in ON?
What kind of returns are considered "decent" for a duplex or triplex, with a 200k purchase price?
What is the average property management fee people are paying to have someone manage those properties? Im a busy professional and honestly wont have much time to manage these.
Would a larger purchase of $600k make more sense (or be riskier, maybe) than 3 smaller purchases of $200k each?

Your feedback is much appreciated.

 

[Matt Crowley]

Look further south... appreciating CAD, better yields south (generally), population growth

Secondary markets still lagging, room for expansion and growth

 

[Londonworks]

Im already heavily invested south of the border. Looking to start investing now within ON as this is my primary residence.

 

[Marnie]

You may want to speak with some mortgage professionals about the best way to leverage your investment capital. Try contacting [email protected] as they will work with you to set up a plan for sustainable growth.

Click here is a recent thread about property management fees

 

[Londonworks]

I am a mortgage broker myself.

 

[RE123RE]

Hello folks. I came across this forum when looking for info on how to "get started" (I will explain below why this is in quotes) and have since started reading and reading and reading.. wow - a LOT of fantastic info being shared here.
In a nutshell, Im a first time investor in Canada, however I currently own properties in the USA and have a complete turn key solution already set for those properties. Now that Im starting to look for a similar structure here in Ontario, I will need some professional assistance.
Plan is to create additional income, as Im not focused primarily on appreciation. Ideally I could purchase between 1-4 properties over the next few months, and the total budget available is around $700k.
So I started checking some listings in London, Sarnia and Windsor and came across some listings that seem almost "too good to be true". Since Im not experienced here, I thought I would ask : anything in particular that I should pay close attention to, when looking into these deals in smaller cities in ON?
What kind of returns are considered "decent" for a duplex or triplex, with a 200k purchase price?
What is the average property management fee people are paying to have someone manage those properties? Im a busy professional and honestly wont have much time to manage these.
Would a larger purchase of $600k make more sense (or be riskier, maybe) than 3 smaller purchases of $200k each?

Your feedback is much appreciated.

Hello,
Answering the following will help you decide and take action:
- Where do you live?
- Why do you want to invest where you live if the properties you own in the US already have a complete turn key solution?
Not that it doesn't make sense to buy in Canada but what does not work for you in the states? Or what benefit do you expect from buying here in Canada compared to buying more in the states?
One of the biggest challenges investing long distance is management. Since you have a mgmt solution in the states, why buy elsewhere?
- Why do you care about cash flow more than Total income (cash flow + appreciation + principal reduction)?
Think well about this one. Perhaps Toronto (Total income) is better than Windsor (cash flow).. For example.
- Do you plan to buy cash or with a mortgage?

 

[Londonworks]

Sure - I can provide more info.
Currently living in Toronto.
Not really looking to invest "where I live" but rather invest in a market Im somewhat familiar with, being a resident of the GTA. At the end of the day, I could invest somewhere else in Canada but small towns near the London/Sarnia/Windsor area caught my attention
Reason I dont want to buy more in the US is to reduce liability and diversification. My properties there generate a decent cashflow (no mortgages there) but Im always concerned about investing too much in a single market, particularly one where currency fluctuations will be a part of life.
New purchases will be financed at 50%, max. Depending on how it works and the amount required over the next 1-2 years it may not need financing at all.
Main goal of cash flow is to replace current income, gradually. The idea is to eventually live off this income (plus the USA income) and some occasional professional activity here in Canada. Due to the nature of my current business (mortgage brokering) I can work remotely and have plans of spending a few years somewhere else, and do some brokering work but not really depending on it to pay the bills.