Scouting Canadian Properties for your Real Estate Investing Portfolio

Part of the Real Estate Investing For Canadians For Dummies Cheat Sheet

Considering a few practical elements may help you choose between an adorable rental property in the middle of nowhere or a tear-down shack with long-term potential. Keep these factors in mind when you’re evaluating a property:

  • Price: Compare the asking price of a property to the average sale price for the area. An undervalued property in a good neighbourhood stands a better chance of increasing in value than an overpriced home in a neighbourhood that’s going nowhere.

  • Condition: You may be getting a great deal on a property but if you haven’t counted on the cost of long-overdue maintenance, you may face a losing proposition. Though you may be able to make something of a property, if the improvements cancel the potential return, what’s the point?

  • Cash flow: Make sure you can attract tenants to a property if you’re counting on cash flow, not just a rising price, from your investment. Remember to balance the projected cash flow against operating costs, to ensure your income stays ahead of expenses.

blog comments powered by Disqus

SERIES
Real Estate Investing For Canadians For Dummies Cheat Sheet

Advertisement

Inside Dummies.com

Dummies.com Sweepstakes

Win $500. Easy.