Many new real estate investors envision purchasing a 2 unit rental property with a tenant residing on one unit while the owner lives in the other. Let the “tenant pay your mortgage” is quoted by many. This is a viable option however it may have some quality of living consequences if the landlord – tenant relationship breaks down.
A landlord – tenant relationship is (or should be) primarily a business relationship. The tenant pays rent and expects a certain level of service as legally mandated by the province or municipality – fire alarms, water, sewer, land tax, property maintenance standards and others.
No money for the down payment? Use equity in your existing home (or line of credit) as a business loan to your new real estate investment business for the down payment. Have the income for the rental building repay your equity or line of credit loan. This is a real life investment scenario that I have used and it works.
I would be happy to discuss my experience and how you may successfully enter the real estate rental investment market.