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Free guide · InvestorsThe GTA Real Estate Investor's Guide
A practical framework for buying rental property, a due-diligence checklist, and a cash flow and cap rate calculator.
The process, in 8 steps.
- 1
Define your strategy
Cash flow, long-term appreciation, or both. Your goal decides the property type, location and how much risk you take on.
- 2
Line up financing
For a rental property that you won't live in, lenders usually require at least 20% down. Get pre-approved with the rental income treatment your lender uses.
- 3
Choose areas and property types
Condos, townhouses, semis and multiplexes each come with different rents, costs, tenant profiles and rules.
- 4
Run the numbers
Use realistic rent, every carrying cost, a vacancy allowance and the right mortgage rate. Compare properties on cash flow and cap rate.
- 5
Do your due diligence
Check the rent control status, condo rules on rentals and the status certificate, zoning for multiplexes, and the cost of repairs.
- 6
Offer and close
Negotiate on the numbers, not emotion, and include the conditions your analysis needs.
- 7
Lease it up
Price against current comparable leases, screen applicants consistently and use the Ontario Standard Lease.
- 8
Review every year
Track returns, rents and the market, and decide whether to hold, refinance or sell.
Tick off each step as you go.
Your progress is saved in this browser, so you can come back any time.
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Cash flow and cap rate calculator
- Mortgage payment / month
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- Net operating income / year
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- Cap rate
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- Cash flow / month
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Example figures; enter your own. Mortgage uses Canadian semi-annual compounding. Excludes income tax, closing costs and appreciation.
Common questions.
What is a good cap rate?
It depends on the area and property type. Compare a property's cap rate against similar properties nearby and against your financing cost, rather than one fixed number.
Are new rentals rent controlled in Ontario?
Units first occupied for residential purposes after November 15, 2018 are generally exempt from the annual rent increase guideline. Older units are subject to it.
Turn this guide into your plan.
Every move is different. Send me a few details and I'll reply personally with a plan for your situation: timing, costs and the steps that matter most for you.
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