Before the boom from 2003 to 2007 it was a great investment to buy a home with a suite in the basement. You could buy the property for around $200 -$250,000 and the rent from the 2 units would not only cover the mortgage but there was positive cash flow left over to pay down the mortgage faster, create a reserve fund or just simply spend. After the prices shot up in the boom that was no longer viable. 2 things have happened in the last couple of years that have now put this investment vehicle on the forefront. The interest rates and the prices have dropped. This is true in all 3 of our market places; the Central Okanagan, the North Okanagan and Salmon Arm/Shuswap area. For example, you can buy a good solid home with a suite in East Hill in Vernon for about $350,000. If you put 20% down your mortgage is $280,000. Your monthly payment at 3% is $1325,00. Add taxes and a contingency to bring it to $1600 per month. Rent for a 3 bedroom upstairs and a 2 bedroom basement suite would be about $2200 per month. That means a $600 per month positive cash flow or a 10% annual return on your $70,000 Down payment. Also these numbers are conservative. You can buy houses in East Hill for less than $300,000 and you can get a 2.6% interest rate as well which all adds to your profits. This is a great return. If you are interested in finding out more give me a call and we can go over your options.