I bought my first investment property in Oshawa in 2012. The biggest thing it taught me is simple. Your first property has one job, and that job is to help you get the second one.
It's been 14 years. Our team has sold more than 2,500 properties since 2014 (see our track record, with every figure defined). That one lesson still shapes what I tell people buying in Hamilton, Burlington and Niagara.
The first one doesn't have to be the dream
Most people wait too long because they want the first place to be perfect. The right street. The right kitchen. The right price.
I didn't buy in Oshawa because it was my dream town. I bought there because I could get in. That mattered more than anything else on the list.
The first property is your school. You learn how the bank thinks, how a tenant thinks and what a roof really costs. You only learn those things by owning one, and the sooner you start, the sooner you stop paying for that lesson out of your own pocket and start getting paid for it.
Hold it long enough to matter
I think of real estate as a way to build wealth first. Buying and selling come second.
That sounds small. It changes everything.
If you see a home as a deal, you watch the price every month and you worry. If you see it as something you'll keep for years, you watch different things. Is the rent covering the costs? Is the tenant happy? Is the mortgage going down?
Slow and steady is boring. It also works.
The work is in four things
Over the years I've boiled it down. The work is getting four things right: the money, the zoning, the tenants and the team.
Money means the right mortgage, sized so a bad month doesn't sink you.
Zoning means what the city lets you build or rent. This is where a lot of hidden value sits, especially now that so many Ontario cities allow extra units on one lot.
Tenants means good people, picked carefully, treated well.
Team means the people you call when the furnace quits on a Sunday.
When I walk through a property, I check the zoning before I let myself like the kitchen. A nice kitchen you can redo. A lot that only allows one unit, you mostly can't.
What this looks like in Hamilton, Burlington and Niagara
In Hamilton, the easiest first step for a lot of people is living in one unit and renting the rest. That's called house hacking, and it works with two, three or even four units. The rent from the other units helps pay your mortgage. Our Hamilton duplex, triplex and fourplex report shows the asking price per unit by building size, which is a much better starting point than the sticker price.
Picture a young couple renting a one-bedroom on the Mountain. They buy a duplex instead, move into the top floor and rent out the bottom. Say the rent covers half their mortgage, as a round example. A few years later they have money saved and a track record with the bank, and they buy a second place. The first home did its one job.
In Burlington, I talk to a lot of owners who already have their first property. They just don't think of it that way. The part of your home you own outright can sometimes help fund the next one. If you're curious, start by finding out what your home would sell for today.
Niagara is a longer game. Estates and winery land move slower and cost more to run, so they usually come later in a portfolio, once the steadier rentals are doing their work.
My takeaway: don't buy the perfect property. Buy the one that gets you to the next one, then hold it.
You can read more about how I got here on my page about my background and how I invest.
Questions people ask
How much do I need for a first investment property in Hamilton if I live in one unit?
It depends on the number of units. With CMHC-insured mortgages, a two-unit home needs the same minimum down payment as a regular house, which is 5% on the first $500,000. A three- or four-unit home needs at least 10% down. The bank can also count some of the rent toward what you can afford: up to all of it for two units, and up to half for three or four.
Is it too late to start building a portfolio in Hamilton, Burlington or Niagara?
I started in 2012, and plenty of people told me then that I'd missed it. The best time is when the numbers work for you and you can hold for years. A good first step is a quick, free check with a mortgage broker on what you can afford.
What is the FOUND Method?
It's how our team sells homes. The letters stand for Focus, Organize, Unleash, Negotiate and Deliver. It came out of years of selling and buying my own properties, and it keeps every sale on the same clear track.
Let's talk about your first (or next) one
If you're thinking about your first rental, or wondering what your current home could help you buy next, I'm happy to talk it through in plain words. Send us a note and pick a time to chat.