Analyze A Rental Property For Cashflow in 10 Seconds!

[@hihi2442]

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-zo6yh]

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.

[@jsauerfinancial8257]

That’s because everyone in Canada fancies themselves a real estate investor and it’s all a giant bubble

[@SIRMMA]

I appreciate the socks - and it is not a forced appreciation

[@CanadianRealEstateChannel]

Hahahahaha- love it 🤣🤣🤣

[@bldfinancial]

So many golden nuggets inside of this video, really enjoyed this video Mattt!

[@lostgoat]

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

[@Javssoccer]

10/10 video. I learned A LOT. Thank you Matt. Proud to subscribe to you!

[@bldfinancial]

🔥 🔥

[@krystleroyse103]

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?

[@michaelmisilo6411]

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!

[@allangrace8662]

Dropping knowledge bombs as aways, thanks Matt! 🔥🔥🔥

[@bldfinancial]

🔥 🔥

[@Antoine.Gagnon]

Great! Make a playlist that's up to date for new viewers thx

[@CanadianRealEstateChannel]

Thanks for the suggestion!

[@francistheinvestor766]

Great content as usual Matt.

[@bldfinancial]

🔥 🔥

[@RamisTheRealtor]

LOVE IT! 1% RULE IS MY FAV

[@bldfinancial]

1% has been very useful over the years for sure!

[@mikeedward1442]

Great stuff Matt!

[@TheRetirementality]

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.

[@renegadezen7841]

Yay my 2 properties are both now 1% rule properties :)

[@ALBERTEINSTEIN777]

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.

[@austinyeh6]

Great tips Matt! Love it

[@troyp6083]

awesome video Matt!

[@soldbysid]

amazing break-down for investors!

[@andrewdodenhoff3652]

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)?

[@CanadianRealEstateChannel]

The government taxes all form on income earned.

[@andrewdodenhoff3652]

@@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?

[@kurash2]

How is that possible to find properties with that return? Calgary is about 0.5%

[@HungarianExperiment]

Damn Matt, this video is GREAT! Can't wait for Parts 2 & 3!!!!

[@kidneycarecoaching3766]

Great video

[@liaomm]

Fantastic video Matt! Can you post the link to sign up for the wholesaler property list?

[@a004]

So none of these formulas at all work for any property in the GTA, even when I thought I was getting a cheap property :(

[@londoner3505]

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.

[@governrent6492]

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.

[@CanadianRealEstateChannel]

💯

[@stephanieschuh-athorp2086]

Thanks, that was really helpful.

[@Mylifewithoutme2006]

But that rule can't really be applied to Vancouver's properties.

[@mrbeefy971]

I can’t seem to find your link for wholesale properties.

[@marcinwieczorek2337]

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 !!

[@londoner3505]

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

[@koelg5858]

How did you learn all of this Matt?

[@justmoney139]

Great video!

[@KingChozen]

Would you ever develop an excel sheet for this?

[@spencerji6162]

this only works in rural area

[@imkarthickc686]

1% rule!!! How this will work in markets like GTA?!

[@jeffliu7640]

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...

[@CanadianRealEstateChannel]

I didn’t go back and watch - but we regularly refer to monthly gross rent multiplier - maybe I just forgot the word 🤷‍♂️

[@ninacheng6509]

Hey how can sign up for the wholesale email

[@amolgill7480]

Notification squad !!

[@CanadianRealEstateChannel]

🙏🏻

[@AdamJDMartin]

The best part is it actually is faster than I can put my pants on xD.

[@sharinglungs3226]

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?

[@realrecognize786]

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?

[@CaseyBurnsInvesting]

Am I first?

[@CanadianRealEstateChannel]

🏆

[@CaseyBurnsInvesting]

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.

[@CaseyBurnsInvesting]

ANYTHING IS POSSIBLE!!!

[@dealman3312]

Love your videos bro! Only critique is please say going instead of goin’

[@Walina1001]

"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.

[@1xxicecatxx1]

LOL adam

[@CanadianRealEstateChannel]

Hahahahaha

[@AdamJDMartin]

I love metrics that I can use faster than I can get dressed haha that's how you know it's simple.

[@mikenowicki9042]

😂 1%rule rules

[@HungarianExperiment]

Second :(

[@CanadianRealEstateChannel]

🏅

[@mirandasi8302]

TL;DR

[@CanadianRealEstateChannel]

Haha - based on that attitude I can tell you’ll go far in this business haha 😆

[@frapeyou]

really good video

[@CanadianRealEstateChannel]

Thanks! Glad you got value from it!