Real Estate Investment

Strategy Options

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

High

Medium

None

Low-High

invest, financing for investors
red dots

House Flipping

Invest

“You make money in the buy”

  • Access to cash or private financing (purchase property & renovations)
  • No need to qualify with traditional banks (flip properties generally don’t qualify anyway, and not refinancing)
  • Good for self-employed individuals (making money, but low T4)

Tips

  • Use licensed contractors (don’t DIY), competition is tough, you can’t compete in the market with a DIY job
  • Spend the money where it counts (quartz counters, SS appliances, # of bedrooms and bathrooms, WOW features)
  • Finish it fully (mirrors included, appliances included)
  • STAGE THE HOME – so important in a flip property

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

Low

low

medium

Low-High

invest, Woman decides between buying or renting house
red dots

Rent To Own

  • You are essentially a ‘private lender’, the buyer picks the property
  • You own the home for X number of years, buyer pays you rent + money towards purchase monthly
  • Good cash flow + lump sum when they cash out
  • Great starting point

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

Medium

Medium

Low

Medium

student rentals
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Student Rentals

  • Good cash flow
  • Higher than average maintenance
  • Use a property management company to handle maintenance
  • Location is important

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

low

Medium

high

Medium

buy and hold
red dots

Buy & Hold

  • Long term game
  • Turn key multi-family investment
  • Very hands off
  • Minimal cash flow/cash flow neutral
  • Long term equity growth

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

medium

Medium

medium

Medium

airbnb
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Airbnb

  • Location is important – downtown core/tourist area
  • Need the right property (should be different or unique)
  • Must fully furnish + stock (dishes/cutlery/blankets/bed sheets/etc)
  • Things to consider: cleaning fees, higher than normal maintenance (to keep everything stocked and tidy)
  • Can be a good source of cash flow in the right location

Risk
Level

Cash
Requirement

Bank
Qualification

Return On
Investment

high

high

high

high

brrr property
red dots

BRRR

  • Long term game (equity-focused)
  • Lower cash flow + Instant Equity (after refinance)
  • More involved/hands-on (renovations)
  • 6 months from ownership to renters (average)
  • Generally JV partnerships (for refinance purposes)