Positive cash flow with small down payment?
(North York, Toronto )
Hi Tom and Nick,
First of all, we are very impressed by your expertise and positive attitude.
We are new immigrants-2 years in Canada. We rent an apartment in a high rise building in North York. Instead of buying our own first property, we are thinking of buying one for investment.
Some info- our combined annual income is $100,000, bank suggested us 3.09% mortgage rate.
The problem is that we have a very small down payment- $20,000. We have two questions:
1) Is it still possible to find positive cash flow properties with such a small down payment? We worked with MLS and Mortgage Calculator and whenever we checked, monthly mortgage was more than rent.
2) My husband thinks that we need to buy investment property only in the area we are ready to live ourselves. In case property stays vacant for several months, we have to be ready to move into it to avoid losing money. What do you think? Is it true?
Thank you very much,