Got balls?

I started shopping. Edmonton is my desired location. I believe Oil prices will stay high. Therefore there will be much employment, hence housing demand.

Started doing searches on the MLS
After many searches I narrowed my criteria to two bedroom, $50K to $150K. The minimum was to filter out the mobile homes.

Only 8 listings. 2 were untenable. So I sent an email to each of the other six asking what the rent was. 2 responses (I have heard it's so busy there it's hard to get a realtor to stop and talk to you)

Here's the system. For an investor you want to have the renter cover all expences. Rule of thumb is the .75% rule. Multiply the cost of the property times .0075.

In my case 150000 X .0075 = 1125 This means if I can charge $1125/mth rent it should come close to covering the mortgage, property management, and taxes.

I have looked at renting.ca and Edmonton Craigslist and came to the conclusion $900 - $1000 was the rate.

Leaves me short a couple hundred bucks a month. Hmmm. Only 8 listings. 63% capital growth in Edmonton last year. Low vacancy rate. 3.4% unemployment.

Worst case scenario I eat a couple hundred bucks a month for a while. If the great depression comes I could afford to carry the rent.

Upside...to the moon Alice.

Called the realtor. Offer is in the works. End of June it should be mine. So in reality it's growing in value and I haven't even spent a nickel.