First time investor looking for advice

[Choner]

Hello Everyone,

I'm looking to purchase my first investment property but I'm having an extremely difficult time finding a property that will cash flow. Let me give you a little background on my situation and what my (failed) approach has been to this point.



I'm looking in Brampton for a home with a legal basement apartment which will allow the property to cash flow easier. Since I will be leveraging the equity in my home as a source of funds for the purchase (financing 100%, SLOC + Mortgage), I'm limited by my budget and criteria (legal basements). Basically I've identified that I need to find something that rents for 2-2.2k/month with a maximum purchase price of 300k.



I've been looking for about a year without much luck. Whenever I see a property that fits the criteria, it sells before I get to see it. The few times where this didn't happen, I've made offers just to be outbid (I offered 99% of list price once just to see it sell for 105% of list).



My question is where would you recommend I search for cash flowing properties given the fact that I will be financing the purchase 100%. I've searched Brampton high and low and also looked at properties in Barrie and Newmarket with no luck.

Looking from some advice.....

 

[markl]

I might have something for you. Drop me an email and I will see if my client would like to sell.



[email protected]

 

[manojsingh]

My suggestion meet with investors who are already doing this. I also invest in Brampton and Hamilton and properties are cash flowing. You can also come to Hamilton mastermind meeting where you will get first hand experience of investor.

 

[invst4profit]

I would suggest moving out of the major centers but no more than a one hr drive in order to be manageable.

Buy in a smaller satellite town but not "rural".

When starting in business it is not always financially viable to have a store front in the most prime area.

Go to a less popular area and buy the best property you can find. Your rent to purchase should be more attractive and be closer to the required 10% range.



You may find you will make 20 or more offers before being successful but this depends a lot on your real estate agent.

It sounds like your agent may not be up to speed on the business.

 

[housingrental]

In addition to the above advice I'd add get a good investment focused realtor as your buying agent - they should be able to get you through when first listed and advise you on price you need to be at to secure property in offers

 

[Choner]

Thanks for the insight Greg. Are there any areas that you would suggest I look into? I am open to other areas, however as this is my first investment property, I would like to be in close proximity to the property as I will be managing this myself (do not plan to hire a property manager at this point). I'm currently located in Vaughan.



Thx

Marco

 

[invst4profit]

Sorry I can not help in that regard. I am not in your area.

Again this is where a qualified real estate agent experienced in investment income properties is essential.

Before moving forward on finding the right property you need to do extensive research on your area. Become a professional in regards to what is available, rent levels and in particular I highly recommend you begin studying the RTA. Ontario has a very tenant friendly LTB which can be a mine field for any LL that does not know the regulations.

 

[housingrental]

Try Victoria Station







[quote user=Choner]Thanks for the insight Greg. Are there any areas that you would suggest I look into? I am open to other areas, however as this is my first investment property, I would like to be in close proximity to the property as I will be managing this myself (do not plan to hire a property manager at this point). I'm currently located in Vaughan.



Thx

Marco

 

[Howell]

Hi,

I also invest in brampton and hamilton and properties are cash flowing. You can also come to hamilton mastermind, meeting where you will get first hand experience of investor.

 

[Hutchym]

Hi! It may be worth your while looking into Shelburne, Ontario. Not to sure what exactly the cashflow is like but it is a satellite town just roughly15 minutes north of orangeville which is growing like crazy. Homes in the area are still affordable. My thoughts are that the property value will most likely be going up significantly and shelburne will become home to more and more people with that freeway 410 extension they completed. Just some thoughts.



Mike