Buying your first property

If you're thinking about buying your first rental property you must know and understand the pros and cons of being a landlord.

It takes a decent amount of money and/or equity to purchase a property to rent out. There can be challenges coming up with the down payment although there are many options available to purchase the property.

What is required to buy your first rental property?

In Ontario you require a 20% downpayment on a rental property when using one of the big banks as a lender.

You will have to show the lender your financials including last years tax return, current pay-stub, etc. It is a good idea to get pre-approved when searching for a rental property.

What should I expect for returns on my rental property?

When searching for a rental property, especially your first one, make sure you understand the location where you are searching. Make sure it is a good area that will attract good tenants that will suit your requirements. Your first property you should expect to make a positive cash flow each month by at least a few hundred dollars. If you aren't making (or going to make) positive cash flow then it is likely not the best property to purchase.