Over the years, I’ve bought and sold properties for many clients. I’ve also bought and sold a handful for myself. Like probably most of you, I was looking to minimize what I put down as a down payment, and so that limited what options existed for me. Bottom line: if I wanted to invest in real estate, I felt like it needed to be in condos.
Now, don’t get me wrong, I think condos can make an excellent investment – and definitely it’s the right investment for a lot of people. Though when I sat back and put on my extreme-analytics cap, I started coming up with scenarios that extended beyond condo ownership. Watch the video above from a webinar I held and recorded to get some extra insight into that process. It’s about 26 minutes long (but it’s worth it).
I took a step back this time and carefully thought out what I wanted to buy. I knew we were due to buy another property (we want to own 10 properties in 10 years). For the reasons shared in the video above, we knew we wanted to buy a three-unit home in an accessible part of Toronto. If I could get something under $1,000,000 that could bring in $4,500 in monthly rent, my numbers would work. I’ll get to the math to show you why that makes sense, but being the guy that likes things summarized – I short-cut it for you.
If a place could bring in those numbers, we were open to investigating the home some more.
In the next post, you’ll see the house we settled on – for many reasons. No reason was stronger, than the one created by my spreadsheet 🙂