# Any Canadians Buying US Rental Properties?



## Steve Divi (Jul 14, 2016)

I just bought my first US rental property and am wondering how popular this is for Canadians?

Anyone out there that has done this want to give their opinion?

So far for me the easiest part was buying the house. 

So far my process went like this.

1) Opened a LOC on my primary residence.
2) Looked for the best property management team I could find
3) Looked for good locations
4) Bought a house
5) Started collecting rent
6) And here I am now. 

The difficult part seems to be the Taxation and Liabilities. I'm just learning all of this part out and everyone seems to have a different view, I'm curious if anyone has a view from their own experience.

Cheers


----------



## OnlyMyOpinion (Sep 1, 2013)

Nope. We're at the other end of the road, just sold superfluous real estate last year (not US). Simpler is better for us.


----------



## Freedomeer (Jan 3, 2018)

I'm looking into buying American rentals. The ratios seem quite a bit better than Canada. But like you said, the tax / litigation stuff seems to make life complicated, so I will be happy if someone with experience replies to this thread.


----------



## Eclectic12 (Oct 20, 2010)

Not me personally ... but here are some highlights. http://www.moneysense.ca/spend/real-estate/be-an-american-landlord-2/

While rare, keep in mind that in a few cases - in addition to the Feds and State, some US cities charge income tax.


Cheers


----------



## jargey3000 (Jan 25, 2011)

been there, done that. bought a condo in FLa. in '09, sold in '12.
yes, buying was the EASY part . agent actually saved me a few bucks! 'mericans do what they do, well!
used a rental co + did a bit of renting on my own.
comments - if your married, put property in ONE spouse's name , if you can. otherwise (not like canada?) you'll have to file 2 tax returns every year. pain in the butt.
be careful of mgt. companies. sometimes they do funny things - i'll leave it at that. 
if in a condo bldg.. be wary of other owners. sometimes they do funny things.
be careful who you rent it to.
do things RIGHT when you go to sell. you DONT want to deal with the IRS!
other than that - have fun & good luck!


----------



## Steve Divi (Jul 14, 2016)

Buying it was by far the easiest part.

I'll keep posting about my progress to help anyone else starting out in the US.

Figuring out the liability side now


----------



## Mukhang pera (Feb 26, 2016)

Bought a house there about 2 decades ago as my principal residence. After awhile, moved overseas, but kept the U.S. house, thinking I would move back into it. Have yet to get around to that, so it's been rented for many years. I have been content, even though my actions have flown in the face of the common wisdom that says never rent a place purchased as a principal residence. 

I bought in a city in which I had been renting for about 2 years and which I knew well. I am not sure I would be brave enuff to buy in some U.S. location of which I knew nothing firsthand. My rule of thumb with rental property I bought in Canada was never own a place to which you cannot drive in 20 minutes. Investing in another country requires a breach of that rule, unless, for example, you live in White Rock, B.C. and buy a rental in Blaine or Point Roberts, WA.


----------



## craiggsmith (Mar 23, 2018)

We would like to share our own experience. we followed step by step approach.

1. Done Research for buying
2. Gone to bank
3. Done all calculations of taxes and all related
4. Made plan
5. Connected with local investors
6. Started shopping
7. Made offer


----------



## fireseeker (Jul 24, 2017)

jargey3000 said:


> been there, done that. bought a condo in FLa. in '09, sold in '12.
> yes, buying was the EASY part . agent actually saved me a few bucks! 'mericans do what they do, well!
> used a rental co + did a bit of renting on my own.
> comments - if your married, put property in ONE spouse's name , if you can. otherwise (not like canada?) you'll have to file 2 tax returns every year. pain in the butt.
> ...


Jargey, perhaps you could explain why you sold. Was your endeavour profitable? Would you do it again?
Thanks, fireseeker
(And pardon for belatedly acting on a month-old post)


----------



## Letran (Apr 7, 2014)

Bought in Vegas 2011
Relatively painless 
Applied for an ITIN
Property management co has been handling it ever since.
File tax with IRS yearly. Cost about $250CDN


----------

