>MLS #: E1772676 on www.realtor.ca. Sale price of $70,000.

2 bedroom rental prices according to www.viewit.ca: $745/mth and up.

Financials

Upfront costs:

• Down payment: $17,500 (I’ll just use 20% downpayment from now on due to the change in the rules for government-insured mortgages)
  
• Land transfer tax: $425

Income:

• Rent: $700 (Lets go below the market rate, just to be conservative with our estimates)

Expenses:

• Mortgage: $247
  
• Tax: $105
  
• Property management: $160
  
• Total: $512

Net cash-flow per month = $700 – $512 = $188 (Not counting the cost of insurance)

ROI = ($188 * 12) / $18,000 (Rounding up the down-payment) = 12.5% per annum

Assume insurance costs $100 per month. We then have a cash-flow of $88 per month

ROI is then 5.8% per annum, which is in line with what most bonds nowadays are giving.