Should you always use the entire pre approved amount?

Liam20309

New Forum Member
REIN Member
I just recently purchase a rental property in Kelowna BC and I am working on my second with a timeline of early 2021. After speaking with my mortgage broker it sounds like next year I will be able to be pre approved for properties in the 450-500k range. (In Kelowna with the current market that majority town homes 2/3 Beds). Curious peoples thoughts on if it would be more worth my time to find x2 properties that may be lower pricing ex. (250k-300k 1/2 beds)
 

Martin1968

Frequent Forum Member
Registered
I’m not knowledgeable on the Kelowna market.
But It would totally depend on what you want yourself.

For me, owning 2 bed/1 bath units as well as 3 bed/2 bath, I find the competition in 2 bed units high
In most cases the majority of rentals are in that segment. The advantage on the other hand is that in general you get, or would allow, working single or working couples and the wear and tear is minimal.
Due to competition in that segment you really want to make sure your product stands out.

It seems in the 3 bed Apartments/townhouse segment, the rental inventory is lower and you can position yourself very well between that 2 bed unit and the 3 bed and up single Family house segment.
Advantage is collecting high rents, but expect to have young family apply and 3 to 4 people occupying the space with as a result a tad higher wear and tear.

Personally I would probably prefer to find x2 props due to drawing form a larger rental pool, but that’s not to say SFH in higher segment is bad

Hope this helps a bit.
 

Thomas Beyer

Senior Forum Member
REIN Member
There’s no one segment of the market that is better than another, per se. Condos generally under perform SF homes or homes with a suite in it but not always. It depends what you want, what you want to specialize in and how much time you’re willing to invest. OK and many smaller markets booming right now due to Covid but that may not always be the case.

Some reads on how to get started here https://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/


Sent from my iPhone using myREINspace
 
Top