Real Estate

Is it possible to be cash flow positive with Rental property in Langley, BC?

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  • Sep 4th, 2021 4:59 pm
[OP]
Newbie
May 27, 2021
45 posts
17 upvotes

Is it possible to be cash flow positive with Rental property in Langley, BC?

Considering the astronomical increase in prices in Greater Vancouver area -- I am wondering if it is still possible to be cash flow positive with 20% down in Surrey, Langley area?

If yes, what type of property will be most suitable Condo, Townhouse or Detached?

Property Budget: $800K
DownPayment: 20%
9 replies
Jr. Member
Dec 3, 2017
187 posts
136 upvotes
lookatami wrote: Considering the astronomical increase in prices in Greater Vancouver area -- I am wondering if it is still possible to be cash flow positive with 20% down in Surrey, Langley area?

If yes, what type of property will be most suitable Condo, Townhouse or Detached?

Property Budget: $800K
DownPayment: 20%
Most probably not.
Sr. Member
Oct 14, 2010
584 posts
610 upvotes
Toronto
Probably looking at $2,200 per month on a 30 year amortization.
Then another 1,000 for condo fees, property taxes and misc.
So can you get $3,200 per month in rent to be cash flow neutral?
Newbie
User avatar
Feb 27, 2017
94 posts
125 upvotes
lookatami wrote: Considering the astronomical increase in prices in Greater Vancouver area -- I am wondering if it is still possible to be cash flow positive with 20% down in Surrey, Langley area?

If yes, what type of property will be most suitable Condo, Townhouse or Detached?

Property Budget: $800K
DownPayment: 20%
You will be hard pressed to find decent detached in your price range in those areas
to answer your question, yes it is possible, not super easy though
Gradatim Ferociter
Deal Addict
May 23, 2006
1528 posts
557 upvotes
Vancouver
With 20% down payment in GVA property, i would say it is impossible to be cash flow positive considering you still have a fairly large mortgage as cash flow includes both principal and interest of mortgage payment.

I think the key is that it is profitable (which includes interest BUT not principal from the mortgage).

As long as it is profitable, it's fine to be cash flow negative as the negative cash flow means you are building equity.
Deal Fanatic
May 22, 2003
8677 posts
5525 upvotes
Vancouver
We've given up on finding a rental property in lower mainland and looking at Vancouver Island instead
Deal Fanatic
May 22, 2003
8677 posts
5525 upvotes
Vancouver
Crazy, a house listed for 729k in Nanaimo we bid on sold for 830k with no subjects...
Member
Feb 15, 2018
441 posts
532 upvotes
Edmonton
Doubt you could ever be cashflow positive given the current pricing in today's GVA market. Try places in Northern BC like Prince George as I hear that is where it is happening in terms of rental cashflows. Or better yet, you could even look into other provinces for better deals and with that amount of down payment you could get yourself two out of province properties and take advantage of that CRA clause that allows you to claim travel expenses if you own two or more properties in the area.
Edmonton area Realtor
Sr. Member
May 29, 2012
602 posts
244 upvotes
Southern Ontario
I'm sorry to sidetrack this discussion but as a landlord in small town Ontario I have to ask for my own curiosity.

I read about city landlords looking for properties all over the city or the surrounding smaller cities and I wonder, how do you manage them?
I'm guessing that you use property management companies as I assume you are not willing to drive over an hour each time there is something needing your attention at the location.

This gets me wondering how much do companies like this charge you?
Do you do anything once these property management companies are hired or just sit back and wait for the money to come in?
Is it basically that you buy the property and the company handles everything else? collecting rent, maintenance, interviewing new tenants?

I personally don't know if any companies my way that do this type of thing and I followed some old advice and never to buy a property more than 20 min drive from where I live.
Newbie
User avatar
Feb 27, 2017
94 posts
125 upvotes
notenoughsleep wrote: Crazy, a house listed for 729k in Nanaimo we bid on sold for 830k with no subjects...
A house in Maple Ridge listed at 900k sold for 1.06kk cash with no subject, the listing agent himself said that it was under priced to begin with, while I don't know for sure if it's the case about your property I suspect it is
Gradatim Ferociter

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