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.
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?