- Joined
- Oct 22, 2007
- Messages
- 2,798
High cashflow is the best strategy for residential mortgages (that, and don't quit your day job). Most of our properties are either suited houses or RTO, both of which have huge cashflow. Our average DCR is about 1.7.
Amazingly, we have yet to hit the wall (aside from bank limits such as number of doors or total mortgage value with that bank). Since we have many more properties than the average investor, I'd say the strategy works.
That being said, I expect to 'hit the wall' every time we apply for a mortgage. At that point, Thomas' comment about the commercial approach and multi's are the answer. (We haven't been impressed with the inventory in Edmonton, so we are contemplating building a few small multi's here.)
Amazingly, we have yet to hit the wall (aside from bank limits such as number of doors or total mortgage value with that bank). Since we have many more properties than the average investor, I'd say the strategy works.
That being said, I expect to 'hit the wall' every time we apply for a mortgage. At that point, Thomas' comment about the commercial approach and multi's are the answer. (We haven't been impressed with the inventory in Edmonton, so we are contemplating building a few small multi's here.)