Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How do I run the numbers before I buy an investment property?

Start with financing, then rent, then legality, in that order. A Saskatoon investment property needs 20 percent down rather than the insured minimum of 5 percent to $500,000 and 10 percent above that, and a lender will only count rent backed by a signed lease, not a projection.

Once financing is set, build the real cash flow. Take actual or realistic rent, subtract property tax, insurance and a maintenance reserve, then compare what is left against the mortgage payment, keeping in mind the City of Saskatoon must have a permit on file for any secondary suite before its rent counts toward that mortgage at all.

Then confirm the unit is legal. The City of Saskatoon requires a secondary suite to be permitted and inspected, and an unpermitted suite is income a lender will not count and a future buyer's lender may not either, which caps both your financing today and your resale value later.

The number that actually decides the deal is what the building is worth as built, not the listing price. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

Still have a question?

Ask Joel directly. No form, no obligation, and a real answer even when the answer is that now is not the time to sell.