The 6 best cities to buy a rental property

Cash flow is king when it comes to an income property

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Market appreciation, cap rates, quality of tenants, job growth, these are just a few of the factors that goes into determining whether or not a rental property is a good investment. Perhaps the most important measure—especially for new or smaller landlords—is cash flow. Based on the analysis from 2016 Best Deals in Real Estate: Where to buy now report, that was just released, here are the six best cities to buy a rental property based on average cash flow.

Best Deals in real estate 2016

 

Of course, it’s always best to do your own research. For instance, do you want more information on whether or not a rental property is a good idea? What about information on whether or not a TFSA can be used to purchase a rental property? You may also want to educate yourself on how banks calculate debt ratios and how rental income is factored into these calculations. If you’re in the market to buy an investment property, you should also learn when to sell that property you may also need to ask yourself some hard questions, like are you really ready to be a landlord?

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One comment on “The 6 best cities to buy a rental property

  1. If you are landlord with a mortgage on the property likely you will see a negative return on investment. From the brief review above, there appears to be a few large items missing: Property Taxes and Maintenance. Remember a tenant is not an owner and likely won’t take care of your property like you will. Expect 2% to 5% of property market value in repairs every year (Worth approx $3k-5k). Also, property taxes are typically 1-2% of property market value (Worth $3k-5k) as well. Don’t invest in a rental property without your eyes wide open. Keeping your money in the bank will also yield 100% return on investment without the hassle of being a landlord.

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