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View Full Version : Best locations/areas to purchase rental property



spiceboy
01-27-2014, 05:04 PM
Gotta admit: Comparing to all the Beyond ballers who drive their Beyond Civics and Accords to their kickass daytime jobs, while collecting money from their multiple rental properties, I can only envy at a distance.
With that said, I'm hoping to get into owning rental properties myself in the near future, and research starts here.

Where do you think are the best areas in Calgary to own rental properties in the context of affordability/demand/tenant type/value/etc?

I know it's preferable to have the rental property close to your own residence so it's short commute when the tenants call for maintenance etc ... For instance, I live in the SW and there are condos and townhouses in Cougarridge/Aspen area. Are those desirable as rental properties?

Asian_defender
01-27-2014, 05:25 PM
Inner city all day long as Jordan would say

ercchry
01-27-2014, 05:36 PM
buy something you can see yourself living in... unless you are one of those undesirable types... then dont do that :rofl:

distance from your primary doesnt really matter... you will be over there once a year/6 months or so on average...

options are: used (cheap, then add value)

or new: (pre-build, hope for increased value when completed)

so when searching for an area its going to be dependent on the projects that are currently on the go and if any good deals come up in the used market. i wouldnt limit yourself to just one location, as there are lots of nice areas in calgary

fully furnished executive rentals seem to be really lucrative, but im not too sure how the numbers would work out in the long run since you would have to keep it up to date.

set and forget would be single family suburbs... once a family plants roots they tend to not want to move since its hard on the kids and what not... this is good for long term tenants that will care for your place

all up to what you are capable of and what you want out of it :dunno:

for example. you could buy an all original home in a more matured part of town, reno it and suite the basement... refinance and rent both units out, depending on how much work you undertake yourself you could be into it for very little after the refinance making the ROI very high

max_boost
01-27-2014, 05:37 PM
Any unit where you can rent/upper lower in more established communities.

$350-$400K range. Separate entrances.

erchrry will tell you $1800 upper and $1200 lower. Cash flow positive. Free house in 10-15 years. Market will not go down. :D

ercchry
01-27-2014, 05:39 PM
Originally posted by max_boost

erchrry will tell you $1800 upper and $1200 lower. Cash flow positive. Free house in 10-15 years. Market will not go down. :D

im sure the market not going down helps you a little more than me, baller! :D

nobb
01-27-2014, 07:46 PM
+1 on the dual zone properties. If I had to do it again, that's what I would do. However, those are usually older homes which may require you to periodically sink money into for repairs and upkeep. You also would likely have to include utilities in the rent price, since there is usually only one meter.

Condos/apartments are cheap, but don't seem very cash positive after condo fees and other expenses. Of course, please feel free to correct me if I am wrong.

spiceboy
01-27-2014, 10:56 PM
someone told me Varsity is a good area. Regardless of the market, there will always be uni students, and they will need a home

lint
01-27-2014, 11:16 PM
if you're in the SW, spruce cliff, rosscarrock, Glendale, Killarney are great areas. close by, plenty of bungalows, R2 lots, close to downtown. there isn't a shortage of renters with budgets in the $500-$800/month/person range. short term rental income, long term redevelopment

JLau
01-27-2014, 11:25 PM
anything that can give you positive cash flow, and it can be rented out easily

Dumbass17
01-28-2014, 09:25 AM
what about how close the rental property is to public transit?

i would think a condo would be good to have near public transit (less parking etc)
whereas a house wouldn't matter too much cause you would assume the tenants would have their own vehicle...

thoughts?

cidley69
01-28-2014, 12:47 PM
Originally posted by lint
if you're in the SW, spruce cliff, rosscarrock, Glendale, Killarney are great areas. close by, plenty of bungalows, R2 lots, close to downtown. there isn't a shortage of renters with budgets in the $500-$800/month/person range. short term rental income, long term redevelopment

I've been looking to purchase a rental propoerty for over a month now. Those inner city lots zoned r2 are out of my budget ($450K ish). Its really difficult right now to find a palce that will cashflow on my budget.

For around the $450K mark, where/what type of place you recommend?

OP, what is your purchase budget?

ercchry
01-28-2014, 01:01 PM
Originally posted by cidley69


I've been looking to purchase a rental propoerty for over a month now. Those inner city lots zoned r2 are out of my budget ($450K ish). Its really difficult right now to find a palce that will cashflow on my budget.

For around the $450K mark, where/what type of place you recommend?

OP, what is your purchase budget?

not enough detail, but worth a look:

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=13982367


its wide enough to suite, dunno if its R2 though

this would probably cash flow... if you dont care about legal vs illegal suites

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=13991857

if you want to become a developer.... this could be good... really good

http://beta.realtor.ca/propertyDetails.aspx?PropertyId=13977665

they talk about buying both lots... but only this one is listed so they may have split them up. dont think its wide enough for a duplex, but would be a really nice sized lot for a detached infill

the market is really dry right now... so i'd personally wait till the fall unless something really catches your eye

lint
01-28-2014, 02:07 PM
Originally posted by cidley69
I've been looking to purchase a rental propoerty for over a month now. Those inner city lots zoned r2 are out of my budget ($450K ish). Its really difficult right now to find a palce that will cashflow on my budget.

For around the $450K mark, where/what type of place you recommend?

OP, what is your purchase budget?

I think it's exceedingly harder to find anything under $550 in the area. All the bargains probably get snatched up quick. A month isn't a long time to be looking, especially if you're looking for a bargain.

Personally, I think cash flow is only one part of the equation. Others will disagree. Also cash flow can be adjusted by adjusting your down payment.

woodywoodford
01-28-2014, 02:13 PM
Inner city, close to downtown, where poor new graduates can rent since they can't yet afford to buy

spiceboy
01-28-2014, 02:32 PM
I originally thought my budget would be around $400K, but seems like the consensus is to get something with a basement suite close to downtown, and $400K is not gonna do it ....


Originally posted by cidley69


I've been looking to purchase a rental propoerty for over a month now. Those inner city lots zoned r2 are out of my budget ($450K ish). Its really difficult right now to find a palce that will cashflow on my budget.

For around the $450K mark, where/what type of place you recommend?

OP, what is your purchase budget?

cidley69
01-28-2014, 02:34 PM
Originally posted by spiceboy
I originally thought my budget would be around $400K, but seems like the consensus is to get something with a basement suite close to downtown, and $400K is not gonna do it ....



What do you figure is a more realistic budget to buy into a prefered area?

msommers
01-28-2014, 05:13 PM
Inner city or close to the South Hospital. But I've heard of people having properties all over the city with success. Specific areas I'd say are: Renfrew, Crescent Heights, Bridgeland, Kensington, Sunnyside, Connaught, Mission.

Best stay away from post secondary areas. Seems like a hassle dealing with constant damages and seasonal renters.

Dumbass17
01-28-2014, 05:27 PM
i would think it really depends on the actual property/value more than the location really :dunno:

cidley69
01-28-2014, 09:45 PM
Anyone wanna go in on partnership for investment property?

Draw up legal docs and stuff?

BigMass
01-29-2014, 02:14 PM
An old Wall Street saying has it that when everybody’s getting into the market and even the shoeshine boy is giving stock tips (or the barber/hairdresser or the taxi driver or the waiter or the bartender), then it’s time to sell. Joseph P. Kennedy knew that it was time to get out of the market in 1929 when his shoeshine boy began giving him stock tips.

all my friends and everyone at my office cant stop talking about investing in real-estate and buying condos and rental properties. Hmmmm, maybe this means something...

G
01-29-2014, 05:47 PM
All the above pieces of advice are as good as "Buy low sell high" and that's about it. They make it sound so easy and risk free...why am I even working 9 to 5 wtf. :dunno:

CanmoreOrLess
01-29-2014, 07:20 PM
My bud in Victoria for the past decade has been living large. He bought the least house on a great street in the Rockland area (old rich area), renovated the place including a nice walkout basement onto a sweet stone patio. Moved into the "basement" and rented out the top floor. The rental covers his house payment and property taxes, he lives for almost free really. A top government official rents the upper floor, no issues at all beyond feeling obligated to join him for an evening scotch every now and then. Amazing what some alternative thinking can do for a real estate investment.

spiceboy
01-30-2014, 01:17 PM
Agreed. Too bad I had other stuff to worry about in 2009-2010 when all markets took a dip.
I suppose if one is handy and can do all the reno and maintenance himself, he can get in for very little and can easily come out on top. Unfortunately that's not my case.


Originally posted by G
All the above pieces of advice are as good as "Buy low sell high" and that's about it. They make it sound so easy and risk free...why am I even working 9 to 5 wtf. :dunno:

scboss
01-30-2014, 04:33 PM
I rented my place for the first 4 months in victoria park in a pretty desirable building. It has a sick view and its only 690 sq ft. I was getting 2200 a month furnished which was awesome. Tons of ppl in the core with mad $$$$$ the guy was even willing to sign a 1yr lease but I had nowhere to live.

IMO if you want to make easy money with no upkeep make sure its a condo. One of the easiest ways to get paid period.


1300 mortgage on 350k
300 condo fees
equals 1600 and 600 a month profit

cant beat that unless you rent out individual rooms in a house (which from my exp is a pain in the balls)

msommers
01-30-2014, 08:42 PM
$1,300 monthly payment on a 350k mortgage?! What interest rate do you have or how much down?

JordanLotoski
01-31-2014, 10:41 AM
Originally posted by Asian_defender
Inner city all day long as Jordan would say

Yes inner-city is the way to go. Lately I have been placing investors out in Auburn Bay. 300k townhomes right accross the street from the south hospital along with the mass development of Seton Blvd will make for a great long term hold.

The units start at 308,000, 160.00 monthly condo fees
20% down
Rent 1700-1750

Should cash flow 200-300 per month

I had 6 investors purchase there last year, a few beyond members and they are quite happy.

scboss
02-01-2014, 01:38 AM
Originally posted by msommers
$1,300 monthly payment on a 350k mortgage?! What interest rate do you have or how much down?

I was lucky and locked in my mortgage for 2.89 on a 5 yr when it was low. Got lucky as hell