Can't afford to buy investment real estate? Think again!

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We meet people all the time that wish they could get into the lucrative residential rental real estate market but just don’t see how they could ever afford it. After all, you need a minimum of 20% down! That’s a far cry from the 5% needed when buying your personal home. But for most, there is a way. And it’s quite simple…

The first question is “Do you own a home?”. If so, “How long have you owned your home?”. An answer of yes to the first question and more than 2-3 years to the second are the key to unlocking this lucrative investment.

If you are a homeowner with a few years of home ownership under your belt you have built equity in your home. And it is likely that your lender will lend you up to 80% of that equity at a very low interest rate via a Home Equity Line of Credit or HELOC. Unlike a personal home where you cannot borrow the necessary 5% down, when purchasing a rental property you can lend yourself the entire downpayment via a HELOC. That means you can put the equity in your home to work making you more money! It’s really that simple.

And we have done this ourselves. We just closed on our fourth rental property with a tenant moving in next month. What other investment has someone else pay for the whole investment while you reap the rewards? None that we are aware of. The tenant pays for the downpayment, taxes, mortgage payments and any possible condo fees.

The great thing about owning rental properties is that they are building equity as well. And before long you can put HELOCs on these properties as well and use those to buy additional properties. And in no time at all you will have your own little real estate empire. Chances are if you know someone that has accumulated substantial wealth, a large portion of their portfolio will be held in real estate.

If we look at Woodstock as a place to invest in residential real estate, the numbers tell a wonderful story. Looking at numbers from the Woodstock/Ingersoll Real Estate Board, we see that the average sold price in Woodstock in June 2020 was $484,948. That is up 43.6% from June 2017. So, in 2017, the average home price was $337,707. That’s a difference of 147,241. If you are buying a $300,000 condo townhome, a 20% downpayment is $60,000.

And voila, you are in a position to purchase your first rental property.

We recently had a young couple who were first time buyer do exactly this. We sold them their first home three years ago and it took every penny they had worked so hard to save just to get that 5% down. But a few short years later they had a HELOC and purchased their first rental property and are excitedly thinking about when they will be in a position to purchase their second. And it won’t take long!

If this has piqued your interest we are always available to discuss your options. We have experience working with all types of real estate investors and love helping people on the path to building their own empire. We would love to help you get started too!

The Truth About Residential Eviction

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Many tenants and landlord are unaware of what is and is not legal when it comes to terminating a residential tendency. Below you will find some big picture information on this issue. This should not be considered as legal advice and tenants and landlord with questions pertaining to an actual eviction should contact the Landlord/Tenant Board or seek legal advice.

To begin, Ontario has a standardized lease that has been mandatory for landlords to use in most residential tenancies since.April 30, 2018. Any residential lease signed since this date that does not use this government document may not be enforceable in part or in its entirety. The document is available here.

Leases may be drawn up as month-to-month or for a year. Any lease that is written for a year automatically converts to a month-to-month lease at the end of the first year with all of the tenants rights intact. A tenant cannot be evicted at the end of the year just because the year has passed.

There are 10 reasons why a landlord may end a tenancy early.

  • Tenant has not paid rent in full including partial payment

  • Tenant continuously late paying rent

  • Tenant damaging the property

  • Tenant conducting illegal activity

  • Tenant activity compromising the safety of others

  • Tenant affecting the enjoyment of other units occupied by tenants or landlord

  • Tenant allowing too many others to live in the rental unit

  • Landlord needs the unit for personal use or for an use by an immediate family member or a caregiver

  • The property has been sold. In this case, existing tenant can only be evicted because the property is going to be used by the new owner as their residence or by an immediate family member or a caregiver. If not, the existing tenant is assumed by the new owner with existing lease in place.

  • The landlord is doing major renovations to the property that require a building permit and vacant possession.

What is the process for eviction?

In almost all situations the landlord must serve the tenant a Notice of Termination, using the proper Government forms, notifying the tenant the reason they are being evicted and the timeframe before the can apply to the Landlord/Tenant Board for eviction. In some situations, the tenant must be given a certain number of days to correct a problem along with a timeframe to do so.

If a tenant does not vacate at the end of their notice, the landlord can then file an application to the Landlord/Tenant Board asking to end the tenancy. A hearing will be held, that may be attended by all parties. After the hearing, the Board will decide if the tenancy will be terminated. If the Board decides the tenancy is ended, the tenant will be given an eviction date. If the tenant fails to move out on the eviction date, the landlord final step is to approach the Sherriff to remove the tenant. The landlord has no right to remove to remove a tenant or their possessions from a property. Only the Sherriff has this power.

Of the ten reasons a landlord may evict a tenant, the first seven are because of the conduct of a tenant. They are fairly self explanatory. Where things can get fuzzy for tenants is the last three reasons. These are all reasons the landlord needs the property back. These need to be looked at more closely

Landlord needs the unit for personal use or for an use by an immediate family member or a caregiver

For the most part, immediate family is a child or a parent. A caregiver must be providing care to the landlord or an immediate family member and they must also reside in the same building or complex. They must occupy the premises for at least one year.

Landlords are required to pay the tenant the value of one month’s rent or offer the tenant another rental unit that is acceptable to the tenant. Only individual landlords may evict for this reason, not corporations.

If the landlord advertises, re-rents or demolishes/converts the unit within one year, she or he will be considered to have acted in bad faith unless they can prove otherwise, and could face a fine of up to $25,000.

The property has been sold. In this case, existing tenant can only be evicted because the property is going to be used by the new owner as their residence or by an immediate family member or a caregiver. If not, the existing tenant is assumed by the new owner with existing lease in place.

A landlord may evict a tenant for this reason only if the property has one to three units. It must also be for use by the new owner, their immediate family member or a caregiver. Property must occupy the premises for at least one year. Also, if there is a fixed term tenancy in place with the existing tenant, the tenant cannot be removed until the end of the rental agreement unless they agree to do so. Many landlords will offer a financial incentive to a tenant to leave early. Again, a tenant only needs to partake in this if they choose to do so.

If the landlord advertises, re-rents or demolishes/converts the unit within one year, she or he will be considered to have acted in bad faith unless they can prove otherwise, and could face a fine of up to $25,000.

The landlord is doing major renovations to the property that require a building permit and vacant possession.

A landlord giving a tenant an eviction notice for this reason must be planning to either demolish the property, convert it to use for a purpose other than residential premises or do repairs or renovations to it property that are so extensive that they require a building permit and vacant possession.

The notice given must be at least 120 days after the date the tenant is notified AND must be the day a period of the tenancy ends or, where the tenancy is for a fixed term, the end of the term. The tenant, after receiving notice for this type of eviction, may end their tenancy at any date prior to the eviction date.

A landlord must offer the tenant an amount equal to three months rent or offer the tenant another rental unit acceptable to the tenant if:

  • the tenant receives notice of termination of the tenancy for the purposes of demolition or conversion to non-residential use

  • the residential complex in which the rental unit is located contains at least five residential units

The landlord cannot lock tenant out of the rental unit. A tenant has the right to stay in their unit until the Landlord/ Tenant Board issues an eviction notice, and again, only the Sherriff has the power to remove a tenant or their belongings. It is an offence for a landlord to illegally lock a tenant out of their rental unit or the building. If a landlord is convicted in Provincial Court, they could be fined up to $25,000 if the landlord is an individual, or $100,000, if the landlord is a corporation.


Hopefully this helps clear up some of the cloudiness that often exists for landlords and tenants when it comes to ending a residential tenancy. This info is supplied for information purposes only and landlords and tenants should always seek legal advice as well as advice from the Landlord/Tenant Board if the find themselves in this situation. Ending a tenancy can be stressful for all parties. Educating yourself on your rights as well as the processes that must be followed will be very helpful.