Investoment Condo (Vancouver) advise
Family income $130,000 (a family of four)
Current home: a townhouse; market value: about $750,000; mortgage balance: $230,000
I am thinking to either buy a detached house or an investment condo. A detached house is no doubt a better choice but it is very expensive in Lower Mainland. After some calculation, I found it is pretty hard for me to afford a fairly decent detached house without being a landlord. As I have two kids, I really don't want tenant(s) in my house. So an investment condo may be my only choice. I don't have too much $$, just a few tens of thousands, but I do have a $250,000 HELOC.
I am thinking to use HELOC as down payment to buy an investment condo in Vancouver downtown. But after doing the math, I realized monthly cash flow would be around -$700, a huge negative cash flow. I just paid off my car loan, which was $900 a month, so a negative $700 cash flow won't have big financial impacts on me ($200 less than my car loan payment).
But is it worthwhile ?