Quote:
Originally Posted by photon
The biggest quesiton is do you think that a) rents will stay the same or increase in the next 2-3 years and b) property values in Calgary will increase enough in the next 2-3 years to make it worth your while? If you do or don't think so, why?
If you don't know enough about the economy and such to be able to answer those questions for yourself, then you aren't really investing, you are just gambling.
That aside.
It's not an easy process for sure, and it's a bit tough to find houses in Calgary that will rent for a proft. But it isn't impossible. But I don't think you'll be able to do it for a small down payment.
On the practical side it might be good to look for something that is already rented, then you don't have to worry about finding tenants and paying while it is empty.
But when you say small downpayment, how small are you talking about? In Calgary for a rented house up and down you would probably be looking at at least $350,000 and probably more. So your down payment would be 25% of that.. plus a reserve fund and various closing costs so at least $80,000.
Finding something in Calgary that you could put down 5% or 10% and rent out for a profit is pretty much impossible unless you find a super steal or rent it out by room (ie a 6-7 bedroom place at $500 per room).
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Very good points. The key to what you said is that you have to have 25% down for a rental property, plus closing costs.