Real Estate

The GTA RE Cash Flow Positive Challenge!

  • Last Updated:
  • Dec 3rd, 2018 12:35 pm
[OP]
Member
May 18, 2015
484 posts
680 upvotes
Thornhill, ON

The GTA RE Cash Flow Positive Challenge!

Post any property listing in the GTA that's cash flow positive.

3,2,1, go!

edit:

If the purchase price is < $500,000 the down payment is 5%
If the purchase price is is between $500,000 and $999,999, the down payment is 5% of the first $500,000, and 10% of any amount over $500,000.
If the purchase price is $1,000,000 or more, the down payment is 20%.
Last edited by jonkoktosen on Dec 3rd, 2018 5:09 am, edited 1 time in total.
39 replies
Deal Expert
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Jan 27, 2004
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T.O. Lotto Captain
I think its possible with some of the lower priced old crusty condo's I see in Scarborough and north york. But only if you find one that has a well funded reserve and nicely managed building.
Sure they are old and crusty looking with 80's carpet and wall paper in the lobby. But I see many that are well maintained. REgardless... Rent even in shady parts of scaborough is still $1500 for a 1 bedroom... so if you can buy a old crust condo for $250k it might work out.
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Oct 1, 2011
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You can't really know unless you know how much they put into the downpayment.
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Dec 13, 2016
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I think 20% downpayment would be a fair example as this much is required to get a mortgage for investment property anyway.
Deal Addict
Jan 17, 2006
1991 posts
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Toronto
All my properties that bought 2 years ago are now cash flow positive even though plan was just to have the m neutral.
Thanks to high demand and huge rent increase in TO.
With record low vacancy who knows what going to be in couple years, may be those that look now as definitely money loses will go into positive territory as well.
[OP]
Member
May 18, 2015
484 posts
680 upvotes
Thornhill, ON
ilim wrote: All my properties that bought 2 years ago are now cash flow positive even though plan was just to have the m neutral.
Thanks to high demand and huge rent increase in TO.
With record low vacancy who knows what going to be in couple years, may be those that look now as definitely money loses will go into positive territory as well.
Congrats, well done!

Do you see any current listings on realtor.ca that are cash flow positive?
Deal Fanatic
Feb 22, 2011
6987 posts
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Toronto
Why bother, even if someone posts an example you will find a reason why you think it's a bad idea.

Also cash flow is just one aspect. On a $500k property you are also getting $1200 per month in mortgage pay down which is retained as equity as well as long term appreciation on a half a million dollar asset.

You use someone else's money to buy it with a mortgage, and someone else to also pay back the mortgage through rent. It's like getting a free half a million dollars. Oh and the mortgage pay down amount increases every single month.

If you don't like it, don't be a landlord. But don't be surprised that hundreds of thousands of people are.

Also you do realize people can push out mortgages to 30 or 35 years. Then even after 5 years they can push it out again. The longer you have it the more cash flow you get.

Looking at a long term investment from day 1 is exactly why so many people missed out on making hundreds of thousands to millions investing in condos in Toronto. Sorry you missed the boat. Don't go crying to OPC when you get priced out of Toronto because they DGAF.
Deal Addict
Jul 21, 2008
1214 posts
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GTA
jonkoktosen wrote: Post any property listing in the GTA that's cash flow positive.

3,2,1, go!
Wait... so I get a finders free?
Member
Jan 27, 2018
255 posts
172 upvotes
mazerbeaner wrote: Why bother, even if someone posts an example you will find a reason why you think it's a bad idea.

Also cash flow is just one aspect. On a $500k property you are also getting $1200 per month in mortgage pay down which is retained as equity as well as long term appreciation on a half a million dollar asset.

You use someone else's money to buy it with a mortgage, and someone else to also pay back the mortgage through rent. It's like getting a free half a million dollars. Oh and the mortgage pay down amount increases every single month.

If you don't like it, don't be a landlord. But don't be surprised that hundreds of thousands of people are.

Also you do realize people can push out mortgages to 30 or 35 years. Then even after 5 years they can push it out again. The longer you have it the more cash flow you get.

Looking at a long term investment from day 1 is exactly why so many people missed out on making hundreds of thousands to millions investing in condos in Toronto. Sorry you missed the boat. Don't go crying to OPC when you get priced out of Toronto because they DGAF.
Very good post... Thumbs Up Sign
Member
Jan 27, 2018
255 posts
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Look at STC... Many great condos positive still in that area.
Banned
Feb 23, 2009
1670 posts
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Oshawa
mazerbeaner wrote: Why bother, even if someone posts an example you will find a reason why you think it's a bad idea.

Also cash flow is just one aspect. On a $500k property you are also getting $1200 per month in mortgage pay down which is retained as equity as well as long term appreciation on a half a million dollar asset.

You use someone else's money to buy it with a mortgage, and someone else to also pay back the mortgage through rent. It's like getting a free half a million dollars. Oh and the mortgage pay down amount increases every single month.

If you don't like it, don't be a landlord. But don't be surprised that hundreds of thousands of people are.

Also you do realize people can push out mortgages to 30 or 35 years. Then even after 5 years they can push it out again. The longer you have it the more cash flow you get.

Looking at a long term investment from day 1 is exactly why so many people missed out on making hundreds of thousands to millions investing in condos in Toronto. Sorry you missed the boat. Don't go crying to OPC when you get priced out of Toronto because they DGAF.
Thanks for wasting bandwidth and trolling.
Go start a thread about NOT being cash flow positive.
Stay on topic.
Do you know what cash flow positive means?
C'mon...you can do it. Try the 'Shwa.
Prices are falling.
Deal Addict
Jan 26, 2016
1517 posts
1306 upvotes
Toronto, ON
ilim wrote: All my properties that bought 2 years ago are now cash flow positive even though plan was just to have the m neutral.
Thanks to high demand and huge rent increase in TO.
With record low vacancy who knows what going to be in couple years, may be those that look now as definitely money loses will go into positive territory as well.
Typically there's a gap at lower down payments to veer into positive. Most will be happy for tenants to pay the principal and see their downpayment turn into a paid off condo within 30 years.
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Jul 14, 2008
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Ontario
Plot twist. OP wants to enter the dark side and is subtly using us to find a good property to pick-up.

NICE TRY COWBOY
Deal Fanatic
Feb 22, 2011
6987 posts
7151 upvotes
Toronto
pkrash wrote: Thanks for wasting bandwidth and trolling.
Go start a thread about NOT being cash flow positive.
Stay on topic.
Do you know what cash flow positive means?
C'mon...you can do it. Try the 'Shwa.
Prices are falling.
Thanks for proving my point. Only someone with no foresight invested in Oshawa because they thought "cash is king." They watched some YouTube video on how to be a RE investor and focused on cashflow when anyone with half a brain knew DT was going to blow up.

People who invested DT made 3x as much. Condos that were $140k 6 years ago are now over $500k.
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Apr 21, 2004
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After the mortgage is paid off, who owns the property and how much was funded by the renter and how much by the owner?

Sounds not as risky with a long-term view in mind.

Let's go bears, show us some math acuity... 10, 9 , 8, 7, 6, 5 , 4, 3, 2 one million, 1 one million...

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