The Vancouver Sun recently wrote a piece about quashing real estate myths. One of the myths they dispelled is the ability to make money from a Vancouver rental property.
With the average Metro Vancouver home selling for $568,127, an 80% LTV 40-year mortgage might run you $2250 a month. Then you have taxes, maintenance, etc. When all’s done you might need $3,000 a month to be cash flow positive. Yet market rents might bear only $2500 a month.
What do you do? How about build a micro-house in the backyard? Vancouver-based Smallworks will build you a nice 300 square foot bungalow (maybe in your laneway?) for about $71,000. Get a mortgage on it for $350 a month, charge $895 a month rent, and voila! Income gap closed.
We say this half in jest, but some people are really doing it. If a lightbulb is going off, check your zoning first.
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