How To Buy Calgary Rental Properties
Step #1 How To Buy Calgary Rental Properties
The 1st step is to create a Break-Even Spreadsheet that determines your purchasing power based on the current rental and mortgage markets. Using RentFaster.ca, we search for properties that we are interested in owning by price range.
Here is a recent search for Houses for Rent in Calgary by Price Range on RentFaster.ca
The Rentfaster.ca search tells us that the bulk of house rentals in Calgary are in the $2,000 to $3,000 monthly rental range. Now that we know how much income we can expect, we can continue to fill out the Break Even Spread Sheet. In this example, we are using a 20% Downpayment with 5.5% Interest over 25 Years.
With the Break Even Spread Sheet Completed, we know the price range we can shop in for a rental property with the initial potential to break even monthly. You put up the down payment, and the tenant takes care of the property while paying off your mortgage. The Break-Even Guide created is the baseline to improve on. Find a lower-priced house that will support higher monthly rent. Find a better mortgage interest rate to lower monthly payments. Take a longer-term mortgage than 25 years to reduce monthly payments. Starting with a property that breaks even monthly is Step #1.
Step #2 How To Buy Calgary Rental Properties
The 2nd step is to find MLS® listed properties for sale that fit the break-even price range. A great Calgary Realtor® (Jerry Charlton) can help you with that. Here are results based on Calgary Detached Homes for sale today (1/21/2022) under $550,000.
Here are a few of the results of the MLS Search on a Map of Calgary.
577 Homes for sale all over Calgary under $550,000 is way too many to evaluate. The goal is to get the highest rent possible for a decent property. 577 total listings can be brought down to a more manageable number by adding a few more filters. Bigger homes rent for more. Homes with garages and finished basements rent for more. Homes in great condition with nice appliances attract better tenants willing to spend more. And Location is just as important. The Best Potential Rental Properties For Sale attract the most qualified and experienced landlords. Before you go up against the pro's be prepared with your financing in place and a great Realtor® (Jerry Charlton) that can help you Find, Buy and Manage your Rental Properties in Calgary.
How Much Income Can A Property in Calgary Generate for The Owner?
How Much House Will The Income Support (Break-Even)?
Where Can You Find Those Properties?
Can You Improve The Break-Even?
Are You Ready to Start Today?
Get Pre-Qualified & Ready To Buy Your Calgary Rental Properties