OK, OK, I realize that the words “Cash flow”, and “Vancouver” don’t really go well together! A big of an oxymoron, right?
Well, maybe not.
Here are a few places where you MAY be able to still squeeze out some cash flow in Vancouver’s lower mainland.
5 ways to find cash flow in Vancouver:
1. Get out in the Fraser Valley! That’s right, places like Abbottsford, Mission, and Chilliwack are experiencing record low vacancy rates right now, and rents are escalating rapidly! Buy yourself a nice BC Box for around $500k if you can find one, renovate it, and rent out both the top and bottom half separately!
2. Short Term Rentals. Yes, Vancouver is doing their best to crack down, but there are still loopholes and ways around the system. Huge opportunities in other municipalities outside of Vancouver as well such as North Vancouver, Burnaby, Richmond, Deep Cove, South Surrey, etc. This method will generate significantly more cash flow, but keep in mind that seasonal factors will come into play, and it’s WAY more work on the property management side…
3. Rent by the room! That’s right, buy a two bedroom condo in downtown Vancouver, and rent it out by the room to students. Get creative and turn your two bedroom apartment into a 4 or 5 bedroom suite. Just be sure that you have the proper permits from the City in place to do this, as well as approval from Strata Council, or those walls could end up coming down!
4. Coach houses, laneway houses, and basement suites…oh my! The City is making these options more feasible by lifting zoning restrictions to increase densification. Take advantage and turn your single family home into 2 or 2 homes.
5. This one is going to sound a little crazy, I know…but put more than 5% down on your Vancouver real estate purchase! It’s amazing what happens to your cash flow when you’re not completely leveraged to the max. If you can scrape together a down payment of 30-35%, you might just find that the numbers work!
As you can see, there are ways to find cash flow in the Vancouver rental market, but you will need to get creative in order to do so!
Give us a call if you’re in need of some expert real estate or property management advice!