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Canadian Real Estate/Buying and Renting Out A House

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Expert: - 6/2/2009


Question
I am interested in buying a house (without selling my own), renovating it, and renting it out. How much money do I need to start this? Can I be in the process of buying a house, and renting it out to someone, i.e. I buy a house worth $120,000, and I put a down payment of $10,000, but I don't outright own the house yet because I just put the down payment and have yet to pay off my mortgage, but can I still rent it out to a client for say $700 a month?
 Do you have any advice as to how I should go about buying another house?
Any tips would be appreciated, or inside info.
Thank you

Answer
Hi Caine,
 Go to your Bank or Mortgage Broker and ask if you qualify for another Mortgage? They can tell you.  If so, you can buy another home and renovate it, rent it out or do what ever you want with the property as long as you qualify for another Mortgage? They will look at the equity you already have in your own house,Your income,Assets, down payment and your credit rating. The Bank my want a 25% down payment and want to see a Lease before they lend the money or another Name on Title as dual ownership.
Good luck!!
Derek

Canadian Real Estate

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Derek Hamilton

Expertise

Any questions relating to Residential Real Estate in the City of Toronto or Southern Ontario. How much is my home worth in todays market? What's involved in Buying Real Estate ? How much do you need for a down payment? What's involved in Buying a Condo? What's involved in Buying a Co-op? What do you need as a deposit? How to choose a good Real Estate Agent for your property? What should you do to prepare your home for the market? How much Commission should you expect to pay? What are the expenses when Buying or selling your property? Should you have your home Staged for the market?

Experience

Residential Real Estate Sales Representative in Toronto Ont,Canada for 25 years. Award winner for 20 straight years with Royal Lepage & Sutton Group. Prior experience was 10 years building new custom homes & Renovations in North Toronto. I have a total of 30 years experience in the Residential Real Estate field.

Organizations
I also subscribe to the Georgian Triangle Real Estate Board in Collingwood & the surrounding areas.

Education/Credentials
George Brown College "Carpentry", Continuing Education with the Toronto Real Estate Board. Member sinse 1985.

Awards and Honors
Platinum Award 2000-2008

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