What Works in Toronto’s Uncertain Real Estate Market – Episode #206

There is fear in the air and this brings uncertainty in the market. Prices have come down since April 2017 so let me explain what investment properties work in today’s market in the Toronto Beaches and surrounding areas.

Duplexes – still tough to get them to work but as prices continue to level off there are some properties that may work

Triplexes – all day – key is to buy in the right location with the right type of property and converting it into a triplex (must make the quality finishes and layout work in order to attract the right tenant profile)

4-6 units – creating them is your best bet.

Most of time, the best strategy is to create your investment property / income property. To buy a turn key property on the open market will almost always not cash flow in today’s market in the Beaches and surrounding area. You must be willing to create it.


Buyers don’t have the time, expertise (know-how), or capital required to create these income properties.


If I can provide you with the team that will create it for you (which eliminates the time and know-how) then that eliminates 2 out of the 3 biggest challenges.

Then how do we come up with a solution to #3 (capital required)?

3 options:

1. You do this solo with your own money (ideal)

2. Borrow it from a HELOC (2nd best option)

3. Partner up with someone you trust who has capital that you are willing to share the profits with

4. The 4th option is to contact me as I am working on this new strategy/program to help investors own a piece of Toronto real estate with little money down

Call me at 416-885-2010

OR even better

Send me a message on my website “contact me” page. www.BeachInvesting.com

Look forward to chatting soon!

East York Bungalow Duplex Conversion Before Renovations – Episode #199

The real estate market in East York has gone crazy! Homeowners and Investors are really ramping things up and renovating their homes to build equity. They are either holding them for personal use, renting them out for investment income, or flipping them to make a profit.

The owner of this property, Brendan Riley, just purchased a property in this HOT location and is about to undergo a massive renovation to convert this property into a luxury duplex.

Brendan is a real estate investor who has done this before. He has learned a lot of lessons in the past so lets see what changes he will make this time and what the results will be. BUT first…lets see what his plans are.

I helped Brendan find this gem in East York that they wish to renovate and rent for the long term with the hopes to generate positive cash flow and a bit of sweat equity.

Can Brendan create an anchor property here? Lets see what his plans are.

If you want to see the final reveal (the after video) please click here: East York Modern Duplex Conversion After Renovations – Episode #200

Beach Investing 5 Years Later – Episode #198

It’s been 5 years since I started this blog and it’s amazing how much things have evolved! The feedback and support has been tremendous…THANK YOU!!! I truly enjoy sharing all these experiences with you and I feel that these videos are getting more educational every episode.

I wanted to provide you with a quick market update for all residential properties in 2015:
Average Price in Toronto (GTA) – $622,217 (10% increase from 2014)
Average Price in East York (E3) – $689,529 (9% increase from 2014)
Average Price in The Beaches/Danforth (E2) – $849,535 (13% increase from 2014)
Average Price in Leslieville/Riverdale (E1) – $730,563 (10% increase from 2014)

The market was very strong in 2015 and has continued into the beginning of 2016 with demand being much higher than the supply. There are predictions that interest rates will start increasing which will probably get the market more active early so buyers can take advantage of the historically low rates. With the new mortgage rules and interest rate rumours and low oil prices, this year promises to be another interesting one to say the least. I personally don’t believe in mass panic. I believe there is a strong reason for this steady demand in the real estate market and a continued one for that matter well into the future. I say this with the focus on areas that continue to drive demand with growing jobs and transportation improvements. Economic fundamentals are key right now and important to understand before making any long term decisions.

Typical Duplex style income properties that just a short few years ago used to sell for the low 600’s are now selling between 775-910k. The rents have not gone up that much in value to justify the property value increase so therefore monthly cash flow has decreased for today’s buyers. So what you need to start looking for are properties that have rents that gross 4k or higher. And properties that allow this type of rents that I have seen are 2.5 storey homes that have a large main unit that rents close to 3k plus the basement of your typical 1200/month. Or creating 2 large units in these properties that rent close to 2200-2400 per unit for a total gross income of 4400-4800 / month. These generate positive cash flow of approx. 600-1000 / month. And of course the best option is to find one of these properties and renovate it to your spec and rent them out.

What’s Hot?
-Just east of Woodbine and Danforth i.e. Oak Park (900’s for your renovated 3br/2ba between 1500-2000 sqft home)4 Oak Park asking 589 and sold 770 nothing special just your typical well maintained home with bsmt apartment, Gledhill (1.276M for an ultra modern home only 25 feet wide), Coleridge are all examples.

What’s Not So Hot?
-Bully Offers without a deposit cheque! Buyer comes back the next day renegotiating the deal because they know they paid 50k more and the seller’s know and are afraid to be firm and lose out.

I know that a lot of you must be thinking that the market is TOO CRAZY for your liking and that there is a BUBBLE that is just ready to BURST! Or perhaps that the market is WAY over priced and it’s only a matter of time that prices will correct or even worse a massive recession will hit. Or once interest rates SKY ROCKET the house values will plummet and we will all lose our shirts. There is a lot of speculation out there and a lot of PANIC. Buyers are panicing to buy something fast before interest rates go up or mortgage rules become more strict. Well……here is my opinion on Toronto’s high values…….

I believe that Toronto is the northern New York City. If you look at some of the most expensive places in the world i.e. New York, Bejing…you will notice that their income levels do not have any correlation to property values. Toronto’s ratio is getting farther and farther apart and I believe it will keep getting farther apart and eventually become similar to New York and these other expensive places. WHY? Because Toronto has everything one needs i.e. work, transportation, beach, concrete jungle, green neighbourhoods, great schools, top hospitals, growing population, no more land to build more, and many other economic fundamentals. I am actually seeing a trend of what many people believe is the opposite i.e. the retired are moving closer to the city versus farther away so they can be closer to the amenities they NEED i.e. Top Hospitals. They may not buy due to affordability so they may rent as most of city dwellers will do in the future as the Toronto income to property value ratio becomes even farther apart. Only the rich will own and rent out their homes to the mass who NEED to be in the city.

That is my opinion and what I believe the future of our city will become. Welcome to the future!

East York Bungalow Before Renovation – Episode #185

This renovation will set a new precedent for bungalows in East York! What we plan on doing with this place will blow your mind!

We plan on lifting the entire house on jacks, opening up the ceilings to create loft space with cathedral ceilings, and adding a rustic cottage look that will surely have all potential buyers fall in love with this place.

Managed by the renovation expert Jeff J Reed. You know there will be some exciting stories to share:)

Here are the other videos related to this renovation project:

Lifting a House With Jacks – Episode #186

How To Add Value When Flipping a House – Episode #187

East York Bungalow The Final Reveal – Episode #188