But it takes even deeper pockets to make a single-family home cash flow positive.

With prices as high as they are, investing in detached properties in CanadaвЂ™s most expensive cities has become a pursuit for the already wealthy. So whatвЂ™s an investor hungry for cash flow to do? You'll need to spend more. You have no idea what's going to happen,вЂќ says Monika Jazyk, director of real estate education provider Real Property Investments. If your homeвЂ™s increasing in value by 10% or 15% every year, who cares if youвЂ™re cash flow negative? WonвЂ™t you make it all back when you sell it? When home prices are surging, novice investors may think they can simply ride the appreciation to Easy Street. ItвЂ™s part of a well-balanced real estate investment strategy. In a market where you can expect to get around $3,500 in rent, that won't cut it.ДЄchieving positive cash flow isnвЂ™t just a way for investors purchasing million-dollar-plus properties to pay their enormous mortgages. With a down payment of 20%, an interest rate of 2.44% and a 25-year amortization, your mortgage payment on a property at that price would be more than $6,000 a month, and thatвЂ™s before taxes and maintenance costs. The average price of a detached home in the City of Toronto was $1.7 million in January, while in Greater Vancouver it was $1.9 million.

In hyperactive markets like Toronto and Vancouver, where competition among buyers has driven prices into the stratosphere, achieving positive cash flow on a detached property - where the income it generates every month is greater than its expenses - can seem impossible. Both are rare, mouth-watering treats that need to be lapped up immediately. If youвЂ™re a real estate investor in Canada today, the phrase вЂњpositive cash flowвЂќ probably affects you the same way a dropped hamburger affects your dog.

Positive cashflow real estate