Unfortunately, the 1% "rule" is extremely geographically dependent. I've been looking in both Calgary and Edmonton and virtually nothing comes close to it outside of Studios/1bed+1bath apartments where you then have to factor in condo fees, which have a median average of $300 that will put you underwater by a couple hundred dollars per month. You would also have to put 20% down on those places as you would not be able to owner occupy them, which would limit loan options. I'd like to go the student housing/househacking route personally, but anything near the colleges and universities with 3+ bedrooms is a minimum of $300,000 and you can only get $700/month maximum for a furnished room. You may end up covering some of these issues in parts 2 and 3 which I am looking forward to, but in the areas I am looking, it is virtually impossible to even break 0.8% in the current market.
@Samuel-zo6yh4 жыл бұрын
HIHI, I'm in the same boat as you. For us in the Edmonton zone, i think were going to have to settle for .5%. the condo fees is what gets us. However the majority of the time we (as owners) should not pay for Hydro/Gas. If you calculate your condo fee's (maintenance,insurance, etc) you can come close to your .7/.8%. Why? because you should take that as your 50% expense rule. With that said, its still very profitable, but not like it is in Ontario, where the current market is outrageous. If you crunch quick numbers, you should be pocketing 200$ (cashflow) per month, if you can maintain that. I think its a win.
@jsauerfinancial82573 жыл бұрын
That’s because everyone in Canada fancies themselves a real estate investor and it’s all a giant bubble
@SIRMMA4 жыл бұрын
I appreciate the socks - and it is not a forced appreciation
@CanadianRealEstateChannel4 жыл бұрын
Hahahahaha- love it 🤣🤣🤣
@bldfinancial3 жыл бұрын
So many golden nuggets inside of this video, really enjoyed this video Mattt!
@lostgoat4 жыл бұрын
I prefer tenants to pay hydro + heat (if separated) so I usually end up using the .8-.9% rule which doesn't seem to be talked about much. Thanks for covering that and separating the 2
@Javssoccer4 жыл бұрын
10/10 video. I learned A LOT. Thank you Matt. Proud to subscribe to you!
@bldfinancial3 жыл бұрын
🔥 🔥
@krystleroyse1034 жыл бұрын
Great video! The 1% rule is nice but difficult to follow in Alberta. Do you have any experience out West? Is it worth it to buy high with low rent to have a property worth more later?
@michaelmisilo64114 жыл бұрын
Matt can Kasey do a video on his Niagara Falls property? Did he end up buying it? Loved this analysis and the 1% rule Matt!
@allangrace86624 жыл бұрын
Dropping knowledge bombs as aways, thanks Matt! 🔥🔥🔥
@bldfinancial3 жыл бұрын
🔥 🔥
@Antoine.Gagnon4 жыл бұрын
Great! Make a playlist that's up to date for new viewers thx
@CanadianRealEstateChannel4 жыл бұрын
Thanks for the suggestion!
@francistheinvestor7664 жыл бұрын
Great content as usual Matt.
@bldfinancial3 жыл бұрын
🔥 🔥
@RamisTheRealtor4 жыл бұрын
LOVE IT! 1% RULE IS MY FAV
@bldfinancial3 жыл бұрын
1% has been very useful over the years for sure!
@mikeedward14424 жыл бұрын
Great stuff Matt!
@TheRetirementality4 жыл бұрын
I think there are enough ways to calculate the numbers on a rental property that you can find a method to make any good deal bad and any bad deal good. I just like to look at cash flow and decide if it is worth it.
@renegadezen78413 жыл бұрын
Yay my 2 properties are both now 1% rule properties :)
@ALBERTEINSTEIN7774 жыл бұрын
SO LET ME GER THIS STR8. ARE YOU SAYING THAT ALL OF THAT ONLY RESULTS IN AN EXTRA 200 DOLLARS A MONTH IN MY POCKET ? WTF ? AM I MISSING SOMETHING ? THAT SEEMS LIKE TOO MUCH RISK FOR TOO LITTLE PROFIT.
@austinyeh64 жыл бұрын
Great tips Matt! Love it
@troyp60834 жыл бұрын
awesome video Matt!
@soldbysid4 жыл бұрын
amazing break-down for investors!
@andrewdodenhoff36523 жыл бұрын
Matt - what about incorporating what you will pay in taxes on your rentals income? You may be net positive in monthly cashflow, but that is eaten up in your annual tax obligation. How do you think about total annual ROI (inclusive of taxes and expenses)?
@CanadianRealEstateChannel3 жыл бұрын
The government taxes all form on income earned.
@andrewdodenhoff36523 жыл бұрын
@@CanadianRealEstateChannel I am aware of the tax consequences. I wasn't clear on my question I guess. From the perspective of analyzing a deal - is what will be paid on the taxable income ever incorporated in analyzing a deal?
@kurash23 жыл бұрын
How is that possible to find properties with that return? Calgary is about 0.5%
@HungarianExperiment4 жыл бұрын
Damn Matt, this video is GREAT! Can't wait for Parts 2 & 3!!!!
@kidneycarecoaching37664 жыл бұрын
Great video
@liaomm4 жыл бұрын
Fantastic video Matt! Can you post the link to sign up for the wholesaler property list?
@a0043 жыл бұрын
So none of these formulas at all work for any property in the GTA, even when I thought I was getting a cheap property :(
@londoner35054 жыл бұрын
The rule is a rule, but in practice to find “deals” my experience to date is that you’d have to really network in your market. In London where Matt and I live 2020 projected avg detached home price is “expected” to reach $460k, which would mean that you’d have to generate $4600 in monthly rent. Now that’s for an avg home. This rent level is nearly impossible even for the London market. Looking on mls for instance will rarely get u the right deals. U really have to get connected with other investors, private sellers and some ambitious realtors to get u what makes sense.
@governrent64924 жыл бұрын
When you're looking for a property these simple rules are ways to quickly weed out the less attractive ones. Once they pass these rules you'll want to get into more details.
@CanadianRealEstateChannel4 жыл бұрын
💯
@stephanieschuh-athorp20864 жыл бұрын
Thanks, that was really helpful.
@Mylifewithoutme20063 жыл бұрын
But that rule can't really be applied to Vancouver's properties.
@mrbeefy9714 жыл бұрын
I can’t seem to find your link for wholesale properties.
@marcinwieczorek23374 жыл бұрын
Hi Matt, I have a question in regards to the BRRR method. For example, if you purchase a for rehab duplex for 250,000, prior to doing a rehab do you appraise the property? Or is the property value based on the purchase price? My understating is that you appraise the property prior and after the remodel. Just a quick suggestion, check out the KZbin channel Joesph Carlson Show. He incorporates questions from his fan base into his videos which is very useful content for many. Just a suggestion but maybe something similar would work well on your channel! Thank you !!
@londoner35054 жыл бұрын
Marcin Wieczorek based on the rule it seems you apply the 1% with initial and projected Reno costs add them up to generate expected increase in rent if that lines up then I suspect that it’s worth considering further
@koelg58584 жыл бұрын
How did you learn all of this Matt?
@justmoney1394 жыл бұрын
Great video!
@KingChozen4 жыл бұрын
Would you ever develop an excel sheet for this?
@spencerji61623 жыл бұрын
this only works in rural area
@imkarthickc6864 жыл бұрын
1% rule!!! How this will work in markets like GTA?!
@jeffliu76404 жыл бұрын
Matt you made an error calculating GRM. It’s purchase price divided by annual rents not monthly rents. You should never see a GRM of 100...
@CanadianRealEstateChannel4 жыл бұрын
I didn’t go back and watch - but we regularly refer to monthly gross rent multiplier - maybe I just forgot the word 🤷♂️
@ninacheng65094 жыл бұрын
Hey how can sign up for the wholesale email
@amolgill74804 жыл бұрын
Notification squad !!
@CanadianRealEstateChannel4 жыл бұрын
🙏🏻
@AdamJDMartin4 жыл бұрын
The best part is it actually is faster than I can put my pants on xD.
@sharinglungs32264 жыл бұрын
So this pretty much eliminates any recent condo, town, semi and detached properties in Toronto. I’m curious how you would handle a scenario like buying a semi for principal residence and rent out the basement suite? Do you divide the home value so that 1/3 represents the basement unit and then do the 1% rule?
@realrecognize7864 жыл бұрын
Hey, I’ve been looking for property’s in Toronto area, I am avoiding basements and rooms, but when looking for a full home, even the smallest places are $2,000 + . Would that be a bad investment?
@CaseyBurnsInvesting4 жыл бұрын
Am I first?
@CanadianRealEstateChannel4 жыл бұрын
🏆
@CaseyBurnsInvesting4 жыл бұрын
Matt McKeever Speech: I’d like to thank my mom and my dad, without them I’d never be here. Gotta thank the man upstairs. Grandma, I know you’re smiling down.. I been working hard at this since I subscribed, they doubted me but, I never gave up. I kept pushing. And now the day is finally here. The day they said would never come... I’m first and I ain’t never going back.
@CaseyBurnsInvesting4 жыл бұрын
ANYTHING IS POSSIBLE!!!
@dealman33124 жыл бұрын
Love your videos bro! Only critique is please say going instead of goin’
@Walina10014 жыл бұрын
"cashflow potential" is not a profit metric. You have completely misrepresented what the 1% "rule" actually tells you. It is a valuation metric. In a 1% market investors will only pay $100,000 for a possible $1000 rent. In a .5% market they will pay twice that. Which one is more profitable? The 1% rule does not tell you that. It is mostly used by scammers who want to sell novices crap in crap markets.
@1xxicecatxx14 жыл бұрын
LOL adam
@CanadianRealEstateChannel4 жыл бұрын
Hahahahaha
@AdamJDMartin4 жыл бұрын
I love metrics that I can use faster than I can get dressed haha that's how you know it's simple.
@mikenowicki90424 жыл бұрын
😂 1%rule rules
@HungarianExperiment4 жыл бұрын
Second :(
@CanadianRealEstateChannel4 жыл бұрын
🏅
@mirandasi83024 жыл бұрын
TL;DR
@CanadianRealEstateChannel4 жыл бұрын
Haha - based on that attitude I can tell you’ll go far in this business haha 😆