Real Estate Investing Morning Show ( REI Investment in Canada )

Real Estate Investing Is HARD! Why You Should Still Bet on Yourself

Real estate investing is not always easy.

There will be difficult days, difficult weeks, and sometimes even difficult years.

And even after more than 15 years of investing experience, Wayne and Gabby Hillier are not immune to those challenges.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby have an unusually personal and unscripted conversation about resilience, entrepreneurship, financial freedom, and what happens when everything seems to go wrong at once.

After experiencing one of the most difficult business days they've had in years, Wayne shares how unexpected setbacks affected their investment portfolio, why even experienced investors can be overwhelmed, and what allows them to continue moving forward.

But this episode isn't about complaining or feeling sorry for yourself.

It's about understanding that difficult times are part of building something worthwhile.

And more importantly, it's about why Wayne believes you should always bet on yourself.

When Everything Goes Wrong at Once

Wayne opens the episode by explaining that he and Gabby recently experienced an unusually difficult day across their businesses.

Several unrelated problems appeared at nearly the same time.

Each issue was manageable on its own, but the combination created a level of pressure they hadn't experienced in quite some time.

Wayne admits that the day affected him emotionally.

He even missed his daughter's soccer practice, something that was particularly difficult because one of the reasons he became an entrepreneur was to have more flexibility and time with his family.

Gabby explains that 2026 has been a challenging year overall.

At times, the only way to move forward has been to focus on the immediate task rather than becoming overwhelmed by everything happening around them.

Their experience is a reminder that successful entrepreneurs and investors still have bad days.

Experience doesn't prevent problems.

It changes how you respond to them.

Resilience Is One of the Most Important Skills in Real Estate Investing

Wayne explains that resilience is not simply about being mentally tough.

It's about preparing your business so that unexpected problems don't destroy everything you've built.

Real estate investors cannot control every external factor.

They cannot control interest rates, market conditions, contractors, unexpected expenses, or every decision made by other people.

What they can control is how they structure their business.

That means developing systems, maintaining financial reserves, planning for unexpected situations, and creating backup options.

Wayne and Gabby have spent years developing their investment businesses to withstand difficult circumstances.

Those preparations are what allow them to experience setbacks without being forced to sell properties or abandon their long-term plans.

Why Cash Reserves Are So Important

One of the biggest lessons from today's episode is the importance of having money available when things go wrong.

Wayne explains that cash reserves provide investors with options.

Imagine owning a rental property where rents suddenly fall by 30%.

An investor without sufficient cash flow or savings may be forced to sell, potentially at a substantial loss.

An investor with adequate reserves may have the ability to continue operating the property until conditions improve.

That doesn't mean the setback disappears or that holding the property guarantees a recovery.

It means the investor has more flexibility and time to make decisions.

Wayne reinforces a principle he regularly teaches through the REI Masters Mentorship Program.

Cash flow protects your investments, and reserves help protect you from being forced to sell.

This is one of the reasons Wayne places so much importance on the 5% Rule™ Cash Flow Test.

Even the Worst Investment Can Still Be Profitable

Wayne also shares a difficult conversation he recently had with one of his joint venture partners.

An unexpected development had affected an investment property.

Although Wayne does not disclose the specific details publicly, he explains that the situation changed how the investment was expected to perform.

It was not a conversation he was looking forward to having.

However, his partner understood the circumstances and recognized that finding out about the issue early provided them with more options.

Wayne explains that the investment may now be one of the least successful deals he has ever completed.

Yet he still expects it to be profitable over the long term.

The lesson is not that every real estate investment will succeed.

It's that strong fundamentals, careful planning, appropriate reserves, and a long-term investment horizon can help investors withstand unexpected challenges.

Choosing the Right Joint Venture Partners

Another important lesson from the experience is the value of choosing compatible investment partners.

Wayne explains that the conversation could have gone very differently with someone who had unrealistic expectations or could not accept that unexpected problems are part of investing.

Instead, his partner understood the circumstances and focused on identifying solutions.

For anyone considering joint venture real estate investing, Wayne emphasizes the importance of working with people who understand the business, appreciate the risks, and share a long-term perspective.

The right partnership is not simply about finding someone with money.

It is about finding someone you can work with when things don't go according to plan.

Why Time Can Be an Investor's Greatest Advantage

Wayne discusses why he approaches real estate investing with a long-term perspective.

When a property has strong fundamentals and the financial ability to withstand difficult periods, time can provide opportunities for mortgage paydown, rental income, and potential appreciation.

Not every investment will perform according to its original projections.

Some properties will require more time, money, or effort than expected.

But a temporary setback does not necessarily mean the entire investment has failed.

Investors who understand their financial position and have the ability to hold an asset may have more choices than those who are forced to sell at the first sign of trouble.

This is why Wayne encourages investors to plan for difficult market conditions before they arrive.

What's the Alternative to Entrepreneurship?

One of the biggest questions Wayne raises during the episode is simple.

What's the alternative?

He acknowledges that entrepreneurship is difficult.

Business owners assume responsibility for their decisions, finances, employees, clients, and the problems that arise.

But traditional employment comes with its own compromises.

Employees may have greater income predictability, but they often have less control over their schedules, working conditions, and earning potential.

Wayne and Gabby discuss the trade-offs between employment and business ownership, including the flexibility they have created by becoming full-time entrepreneurs.

Even after a terrible business day, Wayne says he would still choose the life they have built over returning to a traditional job.

Why Wayne Left His Career to Become an Entrepreneur

Wayne shares a story about the day he decided to leave his previous career.

After an unpleasant interaction with someone at a job site, he began questioning why he was continuing to work for someone else.

By that point, he had already developed a profitable business outside his employment.

He was staying in his job primarily for the security of a regular paycheque.

That experience helped him realize that he no longer needed to continue working in an environment where he felt he had little control over his time.

He had already proven to himself that he could create income independently.

So he made the decision to leave.

Wayne explains that becoming an entrepreneur meant taking responsibility for his own financial future.

His ideas, decisions, effort, and results would now directly affect his own businesses.

The Airport Story That Changed Wayne's Perspective

Wayne also revisits a story he shared years ago on the podcast.

While travelling through an airport, he witnessed a manager unexpectedly tell an employee that she would need to work additional hours.

The employee appeared visibly upset but seemed unable to challenge the decision.

Wayne remembers how strongly that interaction affected him.

It reinforced his belief that having control over your time is one of the most valuable forms of freedom.

He reflects on how many people remain in jobs or circumstances they dislike because they feel they have no alternative.

For Wayne, the experience strengthened his commitment to entrepreneurship and building a life where he could make more of his own decisions.

Your Story Doesn't End at 18

One of Wayne's most important messages is that the direction of your life is not permanently determined by your education, early career choices, or circumstances at 18 years old.

He reflects on his own struggles with school and how he initially entered the workforce without the direction or opportunities he would eventually create for himself.

At one point, he was working at a gas station.

He did not have the real estate portfolio, businesses, financial freedom, or lifestyle that he enjoys today.

Those things came later.

Through education, experience, hard work, and a willingness to take responsibility for his choices, Wayne was able to change the direction of his life.

His message is that people can continue learning, improving, and pursuing new opportunities at any age.

Whether you're 19, 35, 47, or 64, your past does not have to determine your future.

Sometimes You Have to Take a Step Back to Move Forward

Wayne discusses why making a meaningful change sometimes requires accepting temporary discomfort.

That might mean returning to school, learning a new skill, reducing expenses, changing careers, or beginning a business while still employed.

For some people, the transition may take years.

For others, it may require changing their financial priorities or making difficult decisions.

The important part is developing a realistic plan and taking action rather than assuming your current circumstances are permanent.

Wayne encourages listeners to believe they can improve their situations while accepting the responsibilities and consequences that come with their decisions.

Bet on Yourself

The central theme of today's episode is believing in your ability to create something better.

Wayne explains that every investment involves risk.

Starting a business involves risk.

Changing careers involves risk.

But remaining in a situation where you have little control over your future can also involve risk.

His message is not that everyone needs to quit their job immediately.

It's that people should invest in their own education, develop useful skills, build confidence, and create opportunities for themselves.

Real estate investing is one potential path toward that goal.

The most important thing is taking an active role in designing your future rather than simply accepting whatever circumstances happen to come your way.

Build a Business That Can Survive Difficult Times

Wayne brings the discussion back to the fundamentals of successful real estate investing.

Strong cash flow.

Adequate reserves.

Good business systems.

A long-term investment strategy.

The right partners.

And the ability to manage unexpected problems without abandoning your goals.

These principles are what allow Wayne and Gabby to continue operating their businesses even during difficult periods.

Real estate investing can be challenging, but it can also create opportunities for financial independence, flexibility, and long-term wealth.

Wayne and Gabby close the episode by reminding listeners that education is available to help them navigate these challenges.

Also Discussed in This Episode

• Why 2026 has been a challenging year for Wayne and Gabby

• How experienced investors respond when several problems occur at once

• The importance of resilience in business and real estate investing

• Why financial reserves help prevent forced property sales

• The role of cash flow during difficult market conditions

• What makes a good joint venture partner

• Why difficult investment conversations require honesty and perspective

• The importance of building systems and backup plans

• Why long-term investing requires patience

• The trade-offs between employment and entrepreneurship

• The experience that encouraged Wayne to leave his career

• Why having control over your time matters

• How Wayne's early career differed from the life he eventually created

• Why it's never too late to pursue a different future

• Why personal responsibility matters in entrepreneurship

• How the 5% Rule™ supports a more sustainable rental property business

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,300 episodes, the Canadian Real Estate Investing Morning Show provides free real estate investing education, practical strategies, and real-world insights from experienced Canadian investors.

Whether you're purchasing your first rental property, exploring creative financing, managing an existing portfolio, or considering entrepreneurship, Wayne and Gabby share lessons from their own experiences to help you make informed decisions.

REI Masters Mentorship Program

Want to be personally coached by Wayne and Gabby?

The REI Masters Mentorship Program helps Canadian real estate investors develop the knowledge, confidence, and strategies needed to build successful long-term investment portfolios.

Members receive:

• Weekly live real estate investing coaching every Wednesday from 7:00 PM to 8:00 PM Mountain Time

• Access to the Masters Vault, including educational courses, workshops, and resources

• A private Facebook community of like-minded Canadian real estate investors

• Education covering BRRRR, seller financing, Agreements for Sale, rent to own, fix and flips, joint ventures, property management, financing, and other investing strategies

• Help analyzing properties, evaluating cash flow, and identifying investment opportunities

• Guidance on building a personalized investment strategy and roadmap

• Ongoing coaching, accountability, and support from Wayne and Gabby

• Access to an experienced investor community for practical knowledge and encouragement

The goal is not simply to acquire more rental properties.

It's to build a portfolio that helps create financial independence and allows you to live the life you want.

Learn more about the program or book a discovery call:

https://www.reimasters.ca

Our Sponsors

Calvin Realty

Investor-focused real estate services for Canadians looking to buy, sell, and build successful rental property portfolios.

https://calvinrealty.ca

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services designed for Canadian real estate investors.

https://finngo.com/rei

Kirkwood & Brennan Mortgage Group

Investor-focused mortgage financing and portfolio planning.

https://kbmortgages.ca

[email protected]

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday morning at 7:00 AM Mountain Time on YouTube.

Bring your real estate investing questions and learn from Wayne, Gabby, and investors across Canada.

New episodes every weekday morning.

Edmonton Windstorm, Landlord Nightmares & Real Estate Talk With Wayne and Gabby

Sometimes being a real estate investor means analyzing great investment opportunities, negotiating deals, and building wealth.

Other times, it means waking up to emails about fallen trees, damaged roofs, leaning fences, and tenants who suddenly have a year's worth of maintenance concerns.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier share what happened to their rental portfolio after a powerful windstorm swept through Edmonton over the weekend.

What follows is an entertaining, unscripted conversation about the realities of owning rental properties, the frustrations of property management, the importance of reliable contractors, and why investors need systems that allow them to enjoy their lives without constantly dealing with emergencies.

The conversation also takes an unexpected turn when Wayne and Gabby ask their audience a simple question.

Why do you keep listening to this show?

The responses lead to a discussion about real estate investing education, original thinking, artificial intelligence, and what makes the Canadian Real Estate Investing Morning Show different.

Edmonton's Windstorm Creates Rental Property Headaches

Edmonton experienced powerful winds over the weekend, and Wayne and Gabby's rental portfolio did not escape completely unscathed.

Initially, they thought their properties had made it through the storm without major problems.

Then Monday morning arrived.

Emails and text messages began coming in from tenants and contractors reporting damage at several properties.

The problems included fallen trees, damaged roofing, leaning fences, and other maintenance concerns.

Wayne shares how quickly a quiet day can turn into a long list of unexpected responsibilities when you own multiple rental properties.

A Fallen Tree Nearly Hits Their Brand-New Garden Suite

One of the biggest scares involved their recently completed four-unit garden suite in Edmonton.

A large tree broke off from a neighbouring property and landed between the original house and the new garden suite.

Amazingly, the tree missed both buildings.

It did not even damage the fence.

Gabby explains how their landscaper notified them about the fallen tree and sent photographs showing what had happened.

For a moment, she feared the worst.

The situation could have resulted in significant damage to a newly completed investment property.

Fortunately, the outcome was much better than expected.

Wayne uses the experience to explain why having a reliable team is so important.

Rather than personally dealing with every emergency, investors should build relationships with people who can assess problems, recommend solutions, and arrange the work.

Damaged Fences and Missing Roof Shingles

The windstorm also created problems at other rental properties.

One tenant reported that a section of fencing had started leaning after a fence post shifted.

Another property experienced significant roofing damage, with shingles scattered across the yard and neighbouring properties.

Wayne explains that the roof was already more than 25 years old.

Although it would eventually need replacement, it had previously been performing adequately.

Now the question is whether a reasonable repair could extend its remaining service life or whether a more substantial replacement is necessary.

This leads to an important investment lesson.

Long-term real estate profitability is influenced by how effectively owners maintain and replace major property components.

Roofs, fences, furnaces, appliances, and other building systems all have useful lives.

Replacing them too early can create unnecessary expenses, while delaying necessary repairs can lead to additional damage.

Investors need to balance maintenance costs, property condition, safety, and long-term profitability.

Why Proactive Property Inspections Matter

After the storm, Wayne and Gabby decided to schedule another round of inspections across their rental portfolio.

Their goal was to check roofs, identify storm damage, and address maintenance concerns before winter.

Some problems simply cannot be identified by waiting for tenants to report them.

A tenant may not notice missing shingles, deteriorating exterior materials, or other issues that are not immediately visible from inside the home.

Regular inspections give landlords an opportunity to identify potential problems and address them before they become more expensive.

Wayne and Gabby also discuss how tenant communication plays an important role in preventative maintenance.

The Tenant Communication Problem

One of Wayne's biggest frustrations involves tenants who wait until an inspection notice arrives before reporting maintenance problems.

Gabby explains that their inspection notices specifically invite tenants to identify outstanding concerns so repairs can be coordinated efficiently.

That is a good thing.

But it becomes frustrating when an issue has been occurring for months and the landlord was never notified.

Wayne shares an example involving a recurring dryer problem.

Several technicians had previously attended the property, but the tenant did not consistently communicate when the problem returned or whether the repair had been successful.

That can result in repeated service calls, additional expenses, and missed opportunities to address repairs under warranty.

Gabby emphasizes that the tenant is otherwise a good tenant and that the underlying issue still needs to be resolved.

The lesson is that effective communication is essential on both sides of the landlord-tenant relationship.

Why Property Management Systems Protect Your Lifestyle

Wayne and Gabby return to a topic they have discussed frequently on the podcast.

Buying a rental property is only a small part of the overall investment.

The real challenge is operating that property successfully over the next 10, 20, or 30 years.

Good systems help ensure maintenance requests are documented, repairs are scheduled, contractors are coordinated, and responsibilities are communicated clearly.

Without those systems, landlords can find themselves constantly reacting to problems.

And that can interfere with the very lifestyle real estate investing was supposed to create.

A rental portfolio should become a well-managed business rather than an endless collection of emergencies.

Why Do People Listen to the Morning Show?

After an entertaining opening filled with property management frustrations, Wayne asks listeners why they continue tuning into the podcast.

The response is revealing.

Some listeners appreciate the unscripted conversations and humour.

Others value the Canadian perspective and the ability to hear from people actively investing in real estate.

Several listeners mention that they enjoy the logical approach to analyzing properties and evaluating investment opportunities.

Others appreciate knowing that they can ask questions whenever they need help.

Wayne and Gabby also share messages from listeners who reached out simply to thank them for the show.

The conversation becomes a reminder that education does not always need to be polished, scripted, or presented as a formal lesson.

Sometimes the most valuable insights come from hearing experienced investors talk openly about what is actually happening inside their businesses.

Real Estate Education vs Artificial Intelligence

Another major discussion involves the increasing use of artificial intelligence in online education and content creation.

Wayne explains why he values original thinking and wants to be recognized for developing his own ideas, strategies, and theories.

He believes investors should learn to think independently rather than simply repeat what other people are saying.

Gabby agrees that artificial intelligence can be a useful business tool, but argues that it should support someone's work rather than replace their authentic voice.

The conversation also addresses the importance of questioning information, verifying claims, and understanding whether advice comes from actual experience.

Wayne and Gabby encourage investors to develop their own judgment and use education to make better decisions.

Why Wayne Started the Canadian Real Estate Investing Morning Show

Wayne reflects on his original motivation for creating the podcast more than 1,300 episodes ago.

He wanted Canadians to have access to real estate investing education without needing to spend thousands of dollars simply for an opportunity to ask someone a question.

That remains the purpose of the show.

Every weekday morning, listeners can join live, ask questions, and receive practical guidance based on Wayne and Gabby's experience.

The goal is to help people understand the fundamentals, reduce unnecessary risk, and build portfolios that support their personal goals.

The show is a free resource for investors at every stage of their journey.

From Education to Long-Term Strategy

Wayne also talks about the difference between learning how to invest and actually building a plan for financial independence.

He shares examples of REI Masters members who developed their strategies, acquired properties, and eventually reached a point where they could simply allow their investments to grow.

One member, Wally, realized that he had accomplished much of what he originally set out to achieve.

Another, Patrick Mooney, built his portfolio and reached a point where he could focus more on enjoying life rather than continually acquiring properties.

Wayne explains that mentorship should not simply be about continuously teaching the same information.

It should help investors develop the confidence and knowledge to make their own decisions while having access to guidance when their circumstances change.

A New Agreement for Sale Course Is Coming

Wayne shares an update on his plans to release new education covering Agreements for Sale.

He believes changing market conditions are creating renewed opportunities for seller financing in Canada.

When sellers face longer listing periods, increasing competition, or difficulty selling, creative financing arrangements can sometimes help buyers and sellers reach an agreement.

Wayne explains that Agreements for Sale played an important role in building his own rental property portfolio.

He is currently preparing updated education to help investors understand how the strategy works, how to structure deals, and what risks to consider.

Listeners interested in learning more can reach out to be added to the interest list.

Real Estate Tax Talk With Steve Tsonev

Wayne also announces that Steve Tsonev from Finngo Bookkeeping & Tax will be joining the Morning Show on Friday.

Steve will discuss real estate investing taxes, bookkeeping, and situations he encounters while working with property investors.

The episode will focus on practical tax conversations for Canadian real estate investors.

Also Discussed in This Episode

• The impact of Edmonton's recent windstorm on rental properties

• A fallen tree narrowly missing a newly completed garden suite

• Dealing with damaged roofs and fences

• Why preventative property inspections matter

• How to manage repairs and contractor relationships

• When it makes sense to repair or replace an aging roof

• Why communication between landlords and tenants is essential

• The hidden cost of delayed maintenance reporting

• How property management systems protect investors' time

• Why listeners enjoy the Morning Show's unscripted format

• The importance of original thinking in real estate investing

• How to use artificial intelligence without losing authenticity

• Why Canadian investors need reliable education

• How mentorship should evolve from education into strategy

• The upcoming Agreement for Sale course

• Friday's Real Estate Tax Talk with Steve Tsonev

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,300 episodes, the Canadian Real Estate Investing Morning Show provides free real estate investing education, practical strategies, and real-world insights from experienced Canadian investors.

Whether you are buying your first rental property, managing an existing portfolio, or exploring advanced investing strategies, Wayne and Gabby share the lessons they have learned throughout their own real estate investing journey.

REI Masters Mentorship Program

Want to be personally coached by Wayne and Gabby?

The REI Masters Mentorship Program is designed for Canadian investors who want to build successful real estate portfolios and create long-term financial independence.

Members receive:

• Weekly live real estate investing coaching every Wednesday evening

• Access to the Masters Vault, including educational courses, workshops, and resources

• A private Facebook community of like-minded Canadian real estate investors

• Education covering BRRRR, seller financing, Agreements for Sale, rent to own, fix and flips, joint ventures, property management, financing, and other real estate investing strategies

• Support with analyzing properties, evaluating opportunities, and understanding cash flow

• Guidance on building an investment strategy that supports their personal and financial goals

• Ongoing coaching, accountability, and access to Wayne and Gabby's experience

The objective is not simply to purchase more properties.

It is to build a sustainable portfolio that helps create the life you want.

Learn more about the mentorship program or book a discovery call:

https://www.reimasters.ca

Our Sponsors

Calvin Realty

Investor-focused real estate services for Canadians looking to buy, sell, and build successful rental property portfolios.

https://calvinrealty.ca

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services designed for Canadian real estate investors.

https://finngo.com/rei

Kirkwood & Brennan Mortgage Group

Investor-focused mortgage financing and portfolio planning.

https://kbmortgages.ca

[email protected]

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.

Bring your investing questions and join Wayne, Gabby, and investors from across Canada.

New episodes every weekday morning.

How To Avoid Bad Tenants (5 Landlord Screening Tips)

A bad tenant can turn a great rental property into a stressful, expensive investment. But choosing the right tenant can make owning rental properties easier, more profitable, and far more enjoyable.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier share five important things landlords should look for when screening potential tenants.

They also discuss the biggest tenant screening mistakes investors make, why rushing to fill a vacancy can create bigger problems, and how finding the right tenants supports long-term profitability.

The episode begins with a recap of the REI Masters Annual Retreat, where members came together to reflect on their goals, reconnect with their reasons for investing, and focus on building a fulfilling life rather than simply accumulating more properties.

That conversation leads into one of the most important lessons in real estate investing.

Buying a rental property is only the beginning.

The real work is managing that property successfully over the next 20 or 30 years.

And the people you choose to rent to can make an enormous difference.

REI Masters Annual Retreat Recap

Wayne and Gabby kick off the show by sharing highlights from their annual REI Masters Retreat in Edmonton.

Friday evening brought members together for dinner, networking, and several tables of the Cashflow board game.

Beyond having fun, the game helped investors see how financial decisions, opportunities, and setbacks can affect their progress toward financial independence.

Saturday shifted the focus toward goal setting, personal fulfillment, and understanding why members are building their real estate portfolios in the first place.

Wayne and Gabby share how powerful it was to see members reflect on their goals and realize how much they had already accomplished.

One memorable moment came when longtime member Wally shared that he and his family had already achieved much of the life they had originally set out to build.

That realization captures the purpose of real estate investing.

The goal is not necessarily to own more properties forever.

It's to build a portfolio that helps create the life you want to live.

Why the Right Tenant Matters More Than You Think

Wayne and Gabby explain that real estate investors often spend most of their time learning how to find deals, analyze properties, arrange financing, and purchase real estate.

But the actual ownership and management of those properties will determine much of their long-term success.

A great investment can become a poor one if it is managed badly.

Likewise, a reasonably good investment can produce excellent results when managed effectively.

Choosing the right tenants is one of the most important parts of that process.

Good tenants can reduce stress, support consistent rental income, take care of the property, and potentially remain in the home for many years.

That means fewer vacancies, fewer turnovers, and less time spent dealing with avoidable problems.

Meet Maria: The Tenant Every Landlord Hopes to Find

After mentioning the story on previous episodes, Wayne finally shares what makes Maria such a memorable tenant applicant.

From her first message, Maria communicated clearly, politely, and respectfully.

She responded to questions, booked a viewing, showed appreciation to the person conducting the showing, submitted her application promptly, and provided the requested documents.

The information she supplied was consistent and reassuring throughout the process.

Wayne and Gabby explain why this experience stood out so much.

Landlords often receive dozens of messages asking whether a property is available, followed by applicants who disappear, respond inconsistently, or fail to provide the information requested.

Maria was different.

Every interaction made the application process easier.

Although her tenancy had not yet begun at the time of recording, Wayne and Gabby were optimistic about establishing a positive long-term landlord-tenant relationship.

That story leads into today's five screening tips.

5 Things Landlords Should Look for When Screening Tenants 1. The Right Tenant Profile

Before advertising a rental property, understand who the property is best suited for.

Consider the size, layout, location, amenities, and practical features of the home.

The objective is to find tenants whose housing needs match what the property offers.

When a rental property suits someone's needs over the long term, they may be more likely to renew their lease rather than move again after only one year.

Lower tenant turnover can mean fewer vacancies, reduced advertising expenses, and improved profitability.

2. Income, Affordability, and Stability

A tenant needs to be able to comfortably afford the rent.

Wayne and Gabby explain why landlords should look beyond income alone and consider the stability of that income.

Someone may have sufficient earnings today, but landlords still need to understand whether the income is reasonably reliable.

This can involve reviewing employment information, income documentation, and other verifiable sources of income.

The goal is not simply to find someone who can barely afford the rent.

It is to find someone who can pay consistently without being financially stretched.

3. Credit and Payment History

Just because someone earns enough money does not automatically mean they pay their bills on time.

Credit reports can help landlords understand an applicant's history of managing financial obligations.

Wayne explains that checking previous payment behaviour can provide useful insight into whether an applicant has consistently met their financial responsibilities.

Credit information should be considered alongside the complete application rather than used as the only screening factor.

4. Rental History and Landlord References

Previous landlords may provide valuable information about an applicant's rental history.

Did the tenant consistently pay rent on time?

Did they communicate maintenance concerns appropriately?

Did they follow the lease agreement?

Did they take care of the property?

Gabby also cautions that references are not always completely reliable.

A private landlord reference may be difficult to verify, and applicants can sometimes provide contact information that is not legitimate.

References should therefore be checked carefully and compared against other information in the application.

5. Communication, First Impressions, and Consistency

One of Wayne's biggest lessons from Maria's application is the importance of communication.

Does the applicant respond appropriately?

Do they provide the information requested?

Do their answers remain consistent?

Do they communicate respectfully and clearly?

Wayne and Gabby also discuss the importance of first impressions and recognizing potential warning signs.

A positive first impression is helpful, but it should support a thorough screening process, not replace one.

The goal is to make informed decisions based on verified information and consistent, objective screening standards.

The Biggest Tenant Screening Mistakes

Wayne and Gabby also share several mistakes landlords should avoid.

Skipping credit checks: A credit report may reveal information about payment history that is not obvious from an application.

Failing to contact references: Even when references have limitations, they can provide information worth investigating.

Not verifying income: If employment or income documents seem inconsistent, landlords should take appropriate steps to verify them through legitimate sources.

Ignoring inconsistencies: Information that does not match should be clarified before making a decision.

Rushing to fill a vacancy: One month of vacancy can be expensive, but selecting an unsuitable tenant simply to avoid that expense may create much larger problems.

Failing to explain lease expectations: Tenants should understand their responsibilities before signing and moving in.

Making decisions out of desperation: Landlords need adequate financial reserves so they can follow their screening systems without feeling pressured to approve an application prematurely.

Why Verifying Information Matters More Than Ever

Wayne and Gabby discuss how modern technology has made it increasingly difficult to know whether documents are authentic.

Pay stubs, employment letters, and even landlord references can potentially be fabricated.

That means landlords should not automatically assume every document submitted is legitimate.

They discuss why it may be necessary to verify employment information independently rather than relying exclusively on telephone numbers supplied by applicants.

A strong tenant screening process uses multiple sources of information to reduce uncertainty.

No screening method can eliminate every risk, but good systems can help landlords make more informed decisions.

Why You Should Never Choose a Tenant Out of Desperation

Vacancy is one of the most expensive costs landlords face.

Every month without rental income reduces cash flow and can put pressure on the property owner's finances.

However, Wayne argues that investors should never allow that pressure to determine who receives the keys.

If a landlord cannot afford another month of vacancy, they may begin making emotional decisions rather than following their established screening procedures.

This is why Wayne and Gabby place so much importance on cash flow, financial reserves, and the systems behind their rental property business.

A properly funded reserve allows investors to be patient, evaluate applications carefully, and select suitable tenants without compromising their standards.

Successful Property Management Creates Freedom

The episode finishes by connecting tenant screening back to the larger purpose of real estate investing.

Most investors do not get into real estate because they want to spend their evenings dealing with tenant problems, chasing rent, handling disputes, or constantly replacing tenants.

They invest because they want to build wealth, create financial independence, spend more time with family, and enjoy a more fulfilling life.

Good property management systems help make that possible.

Choosing suitable tenants, communicating expectations clearly, maintaining the property, and operating the business professionally can make rental ownership more predictable and less stressful.

Wayne and Gabby's message is simple.

Don't just focus on buying great rental properties.

Learn how to manage them properly for the next 20 years.

Also Discussed in This Episode

• Highlights from the 2026 REI Masters Annual Retreat

• Why investors need to reconnect with their personal goals

• The difference between acquiring rental properties and managing them

• Why tenant turnover affects long-term returns

• The story of Maria and her application process

• Why communication can be an important screening consideration

• How to evaluate rental affordability

• Why income stability matters

• How credit reports help assess payment history

• The limitations of landlord references

• The risk of fraudulent employment documents

• Why landlords should independently verify information

• Why vacancies should never lead to desperate decisions

• How to communicate lease expectations before move-in

• Why financial reserves help landlords maintain strong screening standards

• How better property management supports long-term financial freedom

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,000 episodes, the Canadian Real Estate Investing Morning Show provides free education, practical strategies, and real-world insights for Canadian real estate investors.

Whether you are purchasing your first rental property, managing existing tenants, or scaling a larger portfolio, Wayne and Gabby share lessons from their own investing experience.

REI Masters Mentorship Program

Want to be personally coached by Wayne and Gabby?

The REI Masters Mentorship Program helps Canadian real estate investors build and manage successful real estate portfolios through education, support, and ongoing coaching.

Members receive:

• Weekly live real estate investing coaching

• Access to the Masters Vault educational library

• Private investor community

• Education and courses on all real estate investing strategies including BRRRR, seller financing, rent to own, fix and flips, property management and so much more

Learn more and book a discovery call:

https://www.reimasters.ca

Our Sponsors

Calvin Realty

Investor-focused real estate services for Canadians looking to buy, sell, and build successful investment portfolios.

https://calvinrealty.ca

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services for real estate investors.

https://finngo.com/rei

Kirkwood & Brennan Mortgage Group

Investor-focused mortgage planning and financing strategies for rental property owners.

https://kbmortgages.ca

[email protected]

Join the Conversation

Join Wayne and Gabby live every weekday morning at 7:00 AM Mountain Time on YouTube.

Bring your real estate investing questions and become part of the discussion.

New episodes every weekday morning.

Edmonton Real Estate Market Update October 2026 With Calvin Hexter

The Edmonton real estate market is changing.

Inventory is rising, days on market are increasing, buyer urgency is falling, and the market is beginning to shift away from the highly competitive conditions investors and homeowners became used to over the last several years.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier welcome Calvin Hexter of Calvin Realty back to the show for an Edmonton real estate market update.

Together, they break down what is happening in the market right now, what buyers and sellers are doing differently, how pricing is changing across different property types, and why investors may be entering one of the most opportunity-rich periods Edmonton has seen in some time.

Wayne also answers a listener question about mobile homes as rental properties and discusses why appreciation potential, tenant demand, and long-term business fundamentals matter more than just low entry price.

Edmonton's Market Is Slowing Down

Calvin explains that Edmonton is no longer seeing the same pace of activity many expected heading into the fall.

Normally, the market experiences a strong spring run, a slowdown in summer, and then another push of activity in September as buyers try to get into homes before winter.

This year has been different.

The spring market did not really spring the way many expected, and the usual second wave of activity in September did not materialize either.

People are still buying homes, but they are moving much more cautiously.

One of the reasons is simple: buyers have more choice.

According to Calvin, Edmonton had approximately 8,062 active listings at the time of the episode, which is significantly higher than a more typical market environment.

That increased selection means buyers are taking longer to make decisions, shopping around more, and feeling less urgency to act quickly.

More Inventory Means More Buyer Power

Calvin explains that too many options can actually slow buyer behaviour.

When buyers know a property they looked at today might still be there next week, they are less likely to move quickly and more likely to keep comparing.

That shift matters because Edmonton has spent the last few years in a market more favorable to sellers.

Now, the balance is changing.

Calvin notes that Edmonton is sitting at approximately 4.1 months of inventory, which still places it in balanced market territory, but it is moving closer to a buyer's market.

Historically, once the market reaches around five months of inventory, buyers gain more leverage.

Compared to roughly 2.8 to 2.9 months of inventory at the same time last year, this is a significant change.

For sellers, that means pricing strategy matters more than ever.

For buyers and investors, it means opportunity.

What Is Happening to Edmonton Prices?

Calvin breaks down how prices are changing across different property types.

The most notable weakness is in townhouses and semi-detached properties.

As discussed in the episode:

• Apartment condos were slightly ahead year over year

• Townhouses were down roughly 4.5% year over year

• Semi-detached properties were down roughly 4.8% year over year

• Detached homes were still up year over year, but showing signs of softening

Calvin also notes that rising days on market suggest further price pressure may still be ahead.

This is important because many sellers are still pricing based on earlier market conditions.

Some are comparing their homes to sales from several months ago, or even the beginning of the year, without recognizing how much the market has shifted.

That can lead to overpriced listings, repeated price reductions, and lower final sale-to-list ratios.

Why Sellers Are Struggling

Calvin explains that many sellers are still mentally anchored to the prices they believe they should receive.

In some cases, those expectations are based on earlier 2026 conditions or even the previous year.

The challenge is that the market is no longer supporting those numbers in many segments.

He shares an example of a listing that required multiple large price reductions in a short period of time in order to find the market.

That does not mean the property was bad.

It means the pricing strategy was not aligned with current market reality.

Wayne highlights that for sellers, this can feel negative and frustrating.

But for investors, it can create some of the best buying opportunities.

Why This Is Good News for Investors

Wayne is very clear throughout the discussion.

What sounds like bad news for some sellers can be excellent news for investors.

When prices soften, inventory increases, and urgency drops, investors can negotiate better deals, face less competition, and acquire properties with stronger cash flow.

Wayne explains that for long-term investors, short-term market weakness is not a reason to panic.

It is an opportunity to keep buying.

Even if the market remains soft through winter and even into spring, the key is remembering that this phase is temporary.

If an investor is buying strong assets in a strong long-term market, a temporary dip in pricing can actually improve long-term returns.

Why More Buyers Sitting Out Could Strengthen Rentals

Wayne also points out an important connection between homebuyer hesitation and rental demand.

If many first-time homebuyers decide not to purchase right now because of uncertainty, affordability, or rising rates, they do not disappear.

They keep renting.

That can support rental demand even as the ownership market becomes more cautious.

At the same time, Wayne and Calvin acknowledge that increasing vacancy could put some pressure on rents in certain segments going into the new year.

This is another reason why buying the right property at the right price matters.

Seller Financing Opportunities Are Coming Back

One of the most important investor takeaways from the episode is the discussion around seller financing.

As the market becomes more difficult for sellers, Wayne and Calvin both believe opportunities for seller financing will grow.

When sellers are not getting their ideal price, facing penalties, struggling to sell, or simply not seeing enough interest, some may be more open to creative solutions.

Calvin explains that seller financing can solve real problems for both parties.

For buyers, it may help with:

• Limited mortgage qualification

• Limited down payment

• Better access to financing

• Avoiding some traditional lender constraints

For sellers, it may help:

• Preserve sale price

• Create a stronger deal for buyers

• Generate interest in a difficult market

• Bridge the gap between expectations and market conditions

Wayne emphasizes that seller financing is not some obscure or risky black-market concept.

It is a real strategy, and in shifting markets it can become one of the strongest tools available to investors who understand how to use it properly.

Calvin's Favorite Opportunity Right Now

When Wayne asks directly what opportunity he likes best in today's Edmonton market, Calvin's answer is clear:

Buy and hold.

He explains that he is much more cautious on fix and flips right now because future resale conditions are less certain.

If the spring market underperforms again, flippers could face additional risk.

Buy and hold, on the other hand, benefits from today's lower purchase prices, greater negotiating power, and the ability to focus on long-term fundamentals instead of short-term resale timing.

That makes it Calvin's favorite strategy in the current environment.

Listener Question: Are Mobile Homes a Good Rental Investment?

At the beginning of the episode, Wayne and Gabby answer Tony's listener question about mobile homes as rental properties, including a variation where the mobile home is free but located on a rented lot.

Wayne explains that he does not view mobile homes as an attractive long-term investment option for his own portfolio.

His reasoning is not based on personal judgment toward mobile homes or the people who live in them.

Instead, he looks at them from a business perspective.

He breaks the issue into two parts:

1. Appreciation Potential

Wayne explains that long-term investment success depends heavily on owning assets that people want to buy in the future.

If a property type has limited demand from future buyers, it may offer little appreciation potential.

Since appreciation often represents a large portion of total long-term profit on a rental property, that matters.

2. Rental Business Quality

Wayne also looks at the strength of the rental business itself.

That includes the tenant profile, demand for similar units, lot-rent structure, risks, maintenance, and the possibility of ongoing headaches.

Even if the mobile home is free, that does not mean it is a good investment.

It may still require time, money, repairs, transportation costs, setup costs, and ongoing management.

Wayne's conclusion is that, for him personally, better opportunities exist with lower risk and greater upside.

Also Discussed in This Episode

• Why buyer urgency has faded in Edmonton

• How increased inventory affects buyer psychology

• Why many listings are overpriced for current conditions

• The difference between balanced and buyer markets

• Why townhouses and semi-detached properties have been under more pressure

• Why long-term investors may welcome falling prices

• How cautious buyers can create stronger rental demand

• Why the coming months may create more seller financing opportunities

• Why the right team matters when structuring creative deals

• Why Wayne believes strong investors should focus on what opportunities are being created rather than only what problems are appearing

About Calvin Hexter

Calvin Hexter is an investor-focused realtor with Calvin Realty in Edmonton, Alberta.

He works closely with real estate investors to identify cash-flowing opportunities, analyze market conditions, and help buyers and sellers navigate the Edmonton market strategically.

Website:

https://calvinrealty.ca

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,000 episodes, the Canadian Real Estate Investing Morning Show provides free Canadian real estate investing education, market analysis, practical advice, and lessons from real-world investing.

Whether you are buying your first rental property or building a portfolio, Wayne and Gabby share strategies and insights to help you make better decisions.

REI Masters Mentorship Program

Want personal coaching from Wayne and Gabby?

The REI Masters Mentorship Program provides ongoing real estate investing education, live coaching, practical resources and support for Canadians who want to build long-term wealth through real estate.

Learn more or book a discovery call:

www.reimasters.ca

Our Sponsors

Calvin Realty Real estate services for investors looking to buy strategically and identify investment opportunities. https://calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca [email protected]

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.

Bring your questions, share your experiences, and learn alongside other Canadian real estate investors from across the country.

New episodes every weekday morning.

What Are Canadians Willing to Sacrifice to Own a Home?

Canada's housing market has slowed down, but that does not mean Canadians have given up on homeownership.

Instead, many buyers are adjusting their expectations.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier break down a REMAX report showing that while home sales declined in most Canadian markets, many buyers are still actively trying to purchase homes by changing what they are willing to buy, where they are willing to live, and what financial sacrifices they are willing to make.

Wayne and Gabby also discuss an important question for both homebuyers and real estate investors:

What are Canadians willing to compromise on in order to get into the market?

And just as importantly, which compromises are smart stepping stones, and which ones can leave buyers financially trapped, house poor, or unhappy?

This episode is especially relevant for investors because understanding buyer sentiment helps reveal where housing demand may shift next, which property types may become more desirable, and where future market opportunities may emerge.

Canada's Housing Market Is Slower, But Prices Are Not Falling Everywhere

Wayne opens the episode by explaining that Canada's housing market is slow right now across much of the country.

According to the REMAX report discussed in the episode, home sales declined from the previous year in 81% of the markets they analyzed.

At the same time, average prices increased in 56% of those markets.

That tells investors something important.

Lower activity does not automatically mean lower prices.

It also suggests that many buyers have not disappeared. Instead, they may be waiting, saving, renting longer, or adjusting what they are willing to buy before entering the market.

Wayne explains that this kind of information matters because investor success often depends on understanding what people are likely to do next, not simply reacting to headlines about what already happened six months ago.

Why Buyer Sentiment Matters to Investors

A major theme in this episode is that real estate investors need to pay attention to human behaviour, not just interest rates, market reports, or national news stories.

If fewer people are buying homes today, that may mean more people continue renting.

If affordability improves or financing conditions change, those same renters could eventually re-enter the ownership market.

Understanding what buyers are waiting for and what they are willing to compromise on can help investors forecast future rental demand, resale demand, and pricing opportunities.

Wayne explains that in previous years, changes in affordability and homebuyer behaviour created opportunities in specific property types, including older townhouses that could be renovated and sold to buyers who still wanted ownership but needed a more affordable price point.

This is one of the reasons Wayne and Gabby place so much value on understanding what buyers want, what they can afford, and where demand is most likely to move next.

The REMAX Survey: What Buyers Are Willing to Compromise On

Wayne shares the results of the REMAX survey, which found that nearly two-thirds of respondents said they would make at least one compromise to become homeowners.

The compromises fell into two categories: property and location compromises, and financial sacrifices.

Property and Location Compromises

According to the survey discussed in the episode:

• 31% would move farther from the city centre

• 21% would live farther from stores and amenities

• 20% would buy an older home that needs renovations

• 20% would accept a smaller yard or smaller outdoor space

• 18% would buy a different property type

• 15% would accept a longer commute to work or school

• 15% would live farther from family and friends

Wayne and Gabby discuss how these choices reflect the reality of affordability in today's market.

Many buyers cannot afford their dream home immediately.

Instead, they need to think in stages and use a first home as a stepping stone to build equity and improve their long-term financial position.

Financial Sacrifices

Wayne then shares the financial sacrifices buyers say they would make:

• 41% would reduce travel, dining and discretionary spending

• 24% would extend their mortgage amortization

• 20% would accept financial help from family

• 17% would take a second job or earn additional income

• 17% would delay retirement or long-term savings

• 10% would buy with a co-owner or roommate

• 24% said they would not make any sacrifices at all

• 13% said they were unsure

Wayne and Gabby have a lively discussion about which of these sacrifices sound realistic and which ones may be easier to say in a survey than to follow through on in real life.

What Should Buyers Actually Compromise On?

One of the most valuable parts of the episode is Wayne and Gabby's discussion about which compromises they believe are reasonable and which ones should be approached carefully.

They believe many buyers should strongly consider compromising on:

• Cosmetic upgrades and easy renovations

• Smaller homes

• Smaller lots or smaller yards

• Property type, including townhouses, duplexes or other more affordable options

• Location, if it provides a realistic path into homeownership

Wayne explains that a first home does not need to be a forever home.

In fact, most people should stop thinking of their first home as a dream home and start thinking of it as a stepping stone.

A starter home can help build equity through mortgage paydown, appreciation and strategic improvements.

That equity can then be used to move up later.

Wayne argues that many buyers are trying to skip the starter-home phase entirely and jump straight into a forever home. In most cases, that is simply not realistic.

What Buyers Should Not Compromise On

Wayne and Gabby are also clear that there are some things buyers should be very cautious about compromising on.

They do not recommend compromising on affordability.

If a property is too expensive and leaves a buyer financially stretched, it can create stress, reduce quality of life, and leave the homeowner house poor.

They also caution buyers against using every last dollar for a down payment without keeping money in reserve for repairs, maintenance, or unexpected costs.

Homeownership comes with responsibility and expenses.

Even if a home seems turnkey, buyers should expect repairs and maintenance over time.

Stretching too far financially can turn what should have been a stepping stone into a burden.

Why Homeownership Still Matters

Wayne uses the episode to make a broader point about the value of getting into homeownership as early as possible.

He explains that buying a first home in your early 20s or as soon as reasonably possible can be one of the most effective ways to start building equity.

While renting may offer flexibility, homeowners benefit from mortgage paydown and tax-free capital gains on a principal residence.

Wayne argues that if buyers can make smart compromises, purchase something affordable, and hold it long enough to build equity, that first property can become a stepping stone toward future homeownership or even toward building a real estate investment portfolio.

He also ties this back to a larger investor lesson.

If you understand where entry-level buyers are constrained, what property types are most affordable, and where the strongest demand bottlenecks are, you can often identify high-demand opportunities before the broader market fully recognizes them.

Real Examples From the Live Audience

Wayne and Gabby also share examples from live listeners who discussed the compromises they made to become homeowners.

These examples included:

• Buying suited properties as mortgage helpers

• Choosing smaller homes to avoid becoming mortgage broke

• Purchasing fixer-uppers and adding sweat equity

• Living in less desirable areas initially to create a path toward better opportunities later

• Using each property as a stepping stone rather than expecting the first purchase to be a perfect forever home

These real-world stories reinforce one of the biggest messages of the episode:

Homeownership often begins with an imperfect first step.

The Alberta Angle

Wayne also highlights how these trends may play out differently in Alberta.

The episode notes that REMAX expects Calgary to finish the year in balanced to buyer-friendly territory with its average price down approximately 5%, while Edmonton is forecast to remain balanced with average prices approximately 2% higher.

Wayne cautions that these figures are estimates from brokers and agents rather than guaranteed outcomes, but they still provide useful insight into how conditions may differ across local markets.

For Alberta investors, this may create opportunities in functional older homes, secondary suites, and more affordable housing options outside the most expensive neighbourhoods.

Also Discussed in This Episode

• Why the first home should be viewed as a stepping stone

• The difference between a starter home and a dream home

• Why understanding buyer sentiment helps forecast future demand

• How shifts in affordability can create investment opportunities

• Why older homes that need cosmetic updates can be strong entry points

• Why some smaller-lot or smaller-home properties may outperform because of affordability

• The relationship between homeownership, equity building and future investing

• The risks of becoming house poor

• Why affordability and reserves matter more than appearances

• How homebuyer bottlenecks can reveal high-demand price points and neighbourhoods

• Why investors should pay attention to what people are willing to buy, not just what the media says about the market

About the Canadian Real Estate Investing Morning Show

Join Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,000 episodes, the Canadian Real Estate Investing Morning Show provides free real estate investing education, market insight, practical strategies and real-world lessons for Canadian investors.

Whether you are buying your first home, preparing to purchase your first rental property, or already building a portfolio, Wayne and Gabby share actionable ideas to help you move forward.

REI Masters Mentorship Program

Want personal coaching from Wayne and Gabby?

The REI Masters Mentorship Program provides ongoing real estate investing education, live coaching, practical resources and investor support for Canadians who want to build long-term wealth through real estate.

Learn more or book a discovery call:

www.reimasters.ca

Our Sponsors

Calvin Realty Real estate services for investors looking to buy strategically and identify investment opportunities. https://calvinrealty.ca

Finngo Bookkeeping & Tax Specialized bookkeeping and tax services for real estate investors. https://finngo.com/rei

Kirkwood & Brennan Mortgage Group Investor-focused mortgage financing and portfolio planning. https://kbmortgages.ca [email protected]

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.

Bring your questions, share your experiences, and learn alongside other Canadian real estate investors from across the country.

New episodes every weekday morning.

Reduce Your Mortgage Payments by 18%? Here's How!

What if you could reduce your effective monthly mortgage carrying costs by approximately 18% without selling your rental property or using CMHC's MLI Select program?

With mortgage rates increasing and rental markets becoming more competitive, Canadian real estate investors are looking for ways to protect their cash flow and keep their portfolios financially sustainable.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier welcome back investor-focused mortgage broker Keaton Kirkwood from Kirkwood & Brennan Mortgage Group.

Keaton introduces an unconventional financing strategy that could effectively extend a mortgage's amortization to approximately 48 to 50 years by combining a readvanceable mortgage with a home equity line of credit.

The objective isn't to eliminate debt, generate additional investment returns, or actually obtain a conventional 50-year mortgage.

It's to reduce the amount of money investors need to contribute toward their properties each month, preserve cash flow, and give themselves additional flexibility during challenging market conditions.

Keaton explains how the strategy works, why it could provide approximately $100 per month in cash flow relief for every $100,000 of mortgage debt, and why it should be considered a defensive financial tool rather than a shortcut to building wealth.

Mortgage Rates Are Rising Again

Keaton begins with an update on Canadian mortgage financing conditions.

He discusses the recent increase in bond yields and why investors could see additional increases in fixed mortgage rates.

He also explains why mortgage rates aren't determined exclusively by Canadian economic conditions.

International events, geopolitical uncertainty, energy prices, inflation expectations and global bond markets can influence borrowing costs in Canada.

This creates a difficult decision for investors approaching mortgage renewal.

Do you lock into a fixed rate for several years to create certainty, or consider variable-rate financing with the possibility that borrowing costs could change?

Keaton explains why investors need to understand the trade-offs rather than assuming interest rates will quickly return to previous lows.

The 50-Year Amortization Strategy

The main discussion focuses on an unconventional mortgage strategy Keaton has been exploring.

Rather than applying for a traditional 50-year mortgage, the strategy uses a readvanceable mortgage product.

A readvanceable mortgage allows qualifying borrowers to access a portion of the principal they repay through an associated line of credit, subject to the lender's terms and borrowing limits.

Keaton explains that as a borrower pays down the principal balance of their mortgage, additional borrowing capacity may become available through the line of credit.

That available credit could then be used to cover eligible rental property expenses, including property taxes, maintenance, utilities and other operating costs.

By using borrowed funds to cover some of those expenses, investors may be able to reduce their immediate out-of-pocket costs.

The strategy does not reduce the original contractual mortgage payment.

Instead, it changes how the property's expenses are funded and how quickly the investor reduces their overall debt.

Keaton estimates that, under certain assumptions, the result could be similar to extending the mortgage amortization to approximately 48 years.

How Does the Strategy Work?

Keaton provides a simplified example to explain the concept.

Imagine making a mortgage payment where $500 goes toward reducing the principal balance.

Depending on the readvanceable mortgage product, approximately 80% of that principal repayment could become available through an associated line of credit.

That would create approximately $400 in additional borrowing capacity.

Instead of using all of the available credit, Keaton suggests that an investor might access approximately 80% of that amount.

In this example, that would mean borrowing approximately $320 to help cover property expenses.

The idea is that the investor continues making the regular mortgage payment but uses the available line of credit to fund certain expenses that would otherwise require cash from the property's operating account.

This improves immediate liquidity while slowing the overall reduction of debt.

Keaton emphasizes that the exact calculations depend on the lender, financing terms, interest rates, available equity and individual circumstances.

Could This Reduce Monthly Costs by 18%?

According to Keaton's preliminary calculations, the strategy could provide approximately 18% in effective payment relief under certain conditions.

He estimates that every $100,000 in mortgage debt could potentially provide approximately $100 per month in additional cash flow flexibility.

For example:

$100,000 Mortgage Debt: Approximately $100 per month

$200,000 Mortgage Debt: Approximately $200 per month

$400,000 Mortgage Debt: Approximately $400 per month

$600,000 Mortgage Debt: Approximately $600 per month

These figures are illustrative estimates rather than guaranteed savings.

The actual benefit depends on the mortgage structure, line of credit availability, interest rates, lender requirements and how much borrowing capacity is used.

Importantly, the strategy provides cash flow relief by increasing or maintaining borrowing through the line of credit, not by eliminating interest costs.

The Trade-Off: More Cash Flow Today, Less Mortgage Paydown

One of the most important parts of the discussion is understanding the cost of using this strategy.

Keaton is clear that extending the effective amortization period increases the length of time debt remains outstanding.

That generally increases total borrowing costs and reduces the amount of principal being paid down over time.

Mortgage paydown is one of the primary ways real estate investors build equity and generate long-term returns.

By slowing down that process, an investor is essentially sacrificing some future equity growth in exchange for greater financial flexibility today.

Keaton explains that this should not automatically become an investor's preferred financing strategy.

It is better understood as an option that might help stabilize a property or portfolio during a temporary period of financial pressure.

The goal may be to use the strategy for three or four years rather than permanently changing how the investment operates.

Why This Could Matter for Rental Property Investors

Canadian landlords are facing several challenges simultaneously.

Higher mortgage rates can increase debt-servicing costs.

Property taxes, insurance, maintenance and other operating expenses continue to put pressure on profitability.

In some markets, including Edmonton, increasing rental supply is creating additional competition between landlords.

Vacancies can take longer to fill, and some landlords are reducing advertised rents to attract tenants.

Wayne explains why the next several years could require landlords to become much more effective at marketing their properties, screening tenants and managing operating expenses.

When cash flow becomes tight, the ability to reduce monthly out-of-pocket costs could provide valuable flexibility.

However, Wayne and Keaton both emphasize that financial strategies should support an otherwise sound investment rather than disguise an investment that fundamentally does not work.

Who Should Consider This Strategy?

Keaton explains that the ideal time to explore additional financing options is before an investor is experiencing financial difficulty.

A landlord who is currently financially stable but concerned about future mortgage renewals may benefit from understanding what borrowing products and options are available.

That doesn't necessarily mean implementing the strategy immediately.

It means having a plan before the money is needed.

Keaton also discusses circumstances where an investor may already be feeling pressure from rising costs or negative cash flow.

In those situations, he would review the broader financial picture first.

That could involve evaluating whether the investor should sell an underperforming property, restructure existing financing, or consider other ways to improve cash flow.

The readvanceable mortgage strategy could be one option, but it isn't necessarily the best option for everyone.

If the strategy only delays an unavoidable financial problem by a few months, it may not provide a meaningful solution.

Is This the Smith Manoeuvre or Cash Damming?

During the live discussion, a listener asks whether the strategy is simply cash damming.

Keaton explains that it shares some characteristics with other mortgage and borrowing strategies, including the Smith Manoeuvre, but it is not identical.

The primary objective discussed in this episode is to improve liquidity and reduce immediate out-of-pocket expenses.

It is not specifically presented as a tax strategy.

The tax treatment of line of credit interest depends on how borrowed money is used and the applicable tax rules.

Investors considering this approach should review the financing structure and potential tax implications with qualified mortgage and accounting professionals.

Why Investors Should Prepare Before They Need Help

One of Keaton's strongest messages is that investors should establish access to financing before they are facing an emergency.

Once a property or portfolio is experiencing financial difficulties, qualifying for additional financing may become harder.

Mortgage applications also take time.

Lenders require documentation, underwriting, income verification and other approvals.

Investors who wait until they urgently need money may discover that their options have become limited.

By planning in advance, landlords can create additional flexibility and avoid being forced into rushed financial decisions.

Difficult Markets Can Create Investment Opportunities

Wayne and Keaton also discuss why challenging market conditions aren't necessarily bad for every investor.

When mortgage rates rise, financing becomes more difficult and fewer buyers may be willing or able to purchase investment properties.

Some sellers become more motivated.

Negotiations become more flexible.

Investors who understand their financing options and have strong financial reserves may find opportunities that weren't available during more competitive market conditions.

Wayne shares how some of his strongest investment results came during periods when other investors were worried about interest rates and economic uncertainty.

The key is having the education, financing knowledge and financial stability to navigate those conditions.

Edmonton's Rental Market and the Importance of Property Management

Before Keaton joins the show, Wayne and Gabby also discuss Edmonton's increasingly competitive rental market.

Wayne believes rental oversupply could continue creating challenges for landlords over the next several years.

He explains that property owners may need to improve how they advertise rental properties, attract prospective tenants, conduct tenant screening and manage vacancies.

Gabby discusses the importance of property management education and why successfully operating a rental property is about much more than purchasing the right asset.

They also discuss the possibility of developing additional education specifically focused on becoming a better landlord and managing rental properties more effectively.

Also Discussed in This Episode

• Why Canadian fixed mortgage rates may continue increasing

• How bond yields influence mortgage financing

• The difference between fixed and variable mortgage decisions

• Why readvanceable mortgages can create additional borrowing flexibility

• How a home equity line of credit works alongside a mortgage

• Why a 48-year effective amortization is different from a conventional 50-year mortgage

• How borrowing against repaid principal can improve short-term liquidity

• Why extending debt increases overall borrowing costs

• The relationship between mortgage paydown, cash flow and return on investment

• Why rental property investors need financial reserves

• When restructuring debt might make sense

• Why investors should review their weakest properties

• How the Smith Manoeuvre and cash damming relate to mortgage planning

• Why lender approval and individual calculations matter

• How challenging markets can create opportunities for prepared investors

• Why property management will become increasingly important in competitive rental markets

Connect With Keaton Kirkwood

Keaton Kirkwood is an investor-focused mortgage broker with Kirkwood & Brennan Mortgage Group.

He specializes in helping real estate investors structure their financing, plan for future acquisitions and understand mortgage options that support long-term portfolio growth.

If you're interested in learning whether a readvanceable mortgage could help improve your financial flexibility, contact Keaton to discuss your specific circumstances.

Kirkwood & Brennan Mortgage Group

Website: www.kbmortgages.ca

Email: [email protected]

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,000 episodes, the Canadian Real Estate Investing Morning Show provides free real estate investing education, practical strategies and real-world lessons from experienced Canadian investors.

Whether you're purchasing your first rental property or building a large portfolio, Wayne and Gabby discuss financing, cash flow, property management, market conditions and long-term wealth creation.

REI Masters Mentorship Program

Want personal coaching from Wayne and Gabby?

The REI Masters Mentorship Program provides ongoing real estate investing education, live coaching, practical resources and support for Canadians looking to build successful rental property portfolios.

Learn more or book a discovery call:

www.reimasters.ca

REI Masters Retreat

October 16–17, 2026

Edmonton, Alberta

Wayne and Gabby are welcoming REI Masters members to their annual retreat for two days of education, networking and real estate investing strategy.

Learn more about REI Masters:

www.reimasters.ca

Our Sponsors

Kirkwood & Brennan Mortgage Group

Investor-focused mortgage financing and portfolio planning.

www.kbmortgages.ca

[email protected]

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services for real estate investors.

www.finngo.com

Calvin Realty

Real estate services for investors looking to buy strategically and identify investment opportunities.

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.

Bring your real estate investing questions and join Wayne, Gabby and investors from across Canada.

New episodes every weekday morning.

Important: The financing concepts discussed in this episode are educational and are not a guarantee of reduced borrowing costs or suitability for any particular investor. Borrowing against equity increases or maintains debt obligations and may result in higher total interest costs. Review the terms, risks and tax implications with qualified professionals before implementing any strategy.

Alberta Premier Danielle Smith has ordered Edmonton to roll back its controversial infill housing regulations, and the decision has sparked one of the biggest debates surrounding Edmonton real estate in recent years.

But there is much more to this story than zoning bylaws, parking restrictions and unhappy homeowners.

There is also a federal funding agreement worth approximately $202 million, housing construction targets, municipal commitments, and an important question that has received far less attention.

What happens to Edmonton's federal housing funding if the city changes its rules before fulfilling its agreement?

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier take a detailed look at Edmonton's infill housing controversy, how the city arrived at this point, what the Housing Accelerator Fund was designed to accomplish, and why changing the rules may be more complicated than it appears.

Wayne also examines how the explosion of new rental housing has affected Edmonton's rental market, why he believes some developers could struggle financially, and how he has adjusted his own investment strategy to navigate the changing market.

Why Alberta Wants Edmonton to Roll Back Its Infill Rules

In October 2026, Premier Danielle Smith announced that Alberta wants Edmonton to reverse its post-2023 zoning changes and reconsider parking requirements that had previously been relaxed.

The announcement follows growing opposition from homeowners concerned about high-density infill developments appearing throughout established residential neighbourhoods.

Wayne and Gabby discuss the changing appearance of Edmonton's mature neighbourhoods, particularly in areas where older homes are being demolished and replaced with multi-unit residential buildings.

Some developments include row houses, basement suites, garage suites and other configurations that can substantially increase the number of homes on a single residential lot.

Although the intention was to increase housing supply, the pace and scale of development have created considerable controversy.

Wayne and Gabby both acknowledge that Edmonton needed additional housing, but question whether the development rules could have been implemented more gradually.

How Edmonton's Infill Boom Started

Multi-unit developments were already being built before Edmonton introduced its newer zoning regulations.

However, the development opportunities were significantly more limited.

Investors often needed specific lots or locations where the zoning allowed higher-density construction.

Once Edmonton implemented its new zoning framework in 2024, many more residential properties became eligible for redevelopment.

That change helped create a substantial increase in infill activity throughout established neighbourhoods.

Wayne recalls seeing the early developments in west Edmonton communities such as Jasper Place, Britannia Youngstown and Mayfield before the strategy expanded into other parts of the city.

As more developers entered the market, new building configurations emerged, allowing investors to maximize the number of units that could fit on residential lots.

What began as an opportunity to increase housing supply gradually became a major transformation of Edmonton's established neighbourhoods.

The $202 Million Housing Accelerator Fund

One of the biggest questions surrounding the controversy involves Edmonton's agreement with the federal government.

In 2023, the federal government introduced the Housing Accelerator Fund to encourage municipalities to accelerate housing development and increase housing supply.

Edmonton subsequently secured federal funding through Canada Mortgage and Housing Corporation, with the allocation eventually reaching approximately $202 million.

The funding was tied to an action plan involving zoning changes, development approvals, infrastructure, affordable housing and other initiatives intended to increase residential construction.

Wayne explains that Edmonton was not simply given money without conditions.

The city had to commit to specific housing targets and initiatives.

However, Wayne also acknowledges an important limitation in the information available during the episode.

He had not obtained the complete agreement between Edmonton and CMHC.

Without reviewing the actual contractual terms, it is not possible to definitively determine what would happen to the funding if Edmonton changes its zoning rules.

That distinction becomes particularly important when discussing whether the city could reverse its regulations without creating problems under its federal agreement.

Where Was the Housing Accelerator Fund Money Allocated?

Wayne walks through a city housing action plan budget from 2024 that outlined approximately $175 million in planned spending.

The largest allocations discussed include:

$99 Million: Surplus School Site Redevelopment

Funding allocated to site servicing, development-related costs and affordable housing initiatives involving surplus school properties.

The initiative included an affordability target for at least 50% of the units associated with the program.

$39 Million: Priority Growth Areas and Transit-Oriented Development

Infrastructure investments intended to support development and redevelopment in targeted areas.

$19 Million: Affordable Housing Sector Capacity

Funding intended to support affordable housing development, including land, grants and resources for developers.

$6 Million: District Energy Infrastructure Rebates

Rebates intended to support higher-density development and offset certain district energy connection costs.

$3.4 Million: Streamlining Regulatory Approvals

Technology and software improvements intended to help make development approvals more efficient.

$2.4 Million: Sanitary Sewer Trunk Charge Exemptions or Deferrals

Financial measures designed to reduce certain development costs for affordable housing projects.

$1.1 Million: Secondary Suite and Infill Promotion

Funding for initiatives intended to support additional housing through secondary suites, garden suites and higher-density infill.

$600,000: Fire Flow Capacity Tools

Technology intended to provide more clarity around infrastructure capacity for infill development.

$4.5 Million: Administration

Budget allocated to administering the program.

Wayne and Gabby discuss why there is an important distinction between a budget allocation and the results actually achieved.

They question whether the public has received sufficiently clear information about how these investments have translated into completed projects, affordable housing opportunities and measurable benefits.

Edmonton's Housing Construction Targets

Another major focus of the episode is Edmonton's Housing Accelerator Fund targets.

Wayne discusses a target of approximately 36,235 residential building permits, including an additional 6,038 permits above the city's projected baseline.

He also identifies several housing-related targets and subtargets, including:

• Transit-oriented development: 7,391

• Missing middle housing: 8,059

• Multi-unit housing: 8,520

• Additional permits above baseline: 6,038

• Non-market affordable housing units: 1,940

Wayne explains that these targets help illustrate why Edmonton committed to significant development changes.

However, the episode also raises questions about how close the city is to meeting its commitments and whether fulfilling the targets would allow Edmonton to change its zoning rules without affecting future funding.

Wayne suggests that the timing of Alberta's intervention is particularly interesting because Edmonton may be approaching an important milestone under its housing agreement.

He emphasizes that the complete federal agreement would be needed to establish the exact implications.

Was Edmonton's Housing Accelerator Fund Worth It?

This becomes one of the central questions of the discussion.

Edmonton needed more housing.

Before the increase in new construction, population growth and rental demand were creating upward pressure on rents.

Increasing supply was intended to improve affordability and provide more housing choices.

Wayne acknowledges that increased rental supply has helped create more competition and reduced asking rents for certain properties.

However, the changes also brought consequences.

Established neighbourhoods have changed dramatically.

Homeowners have expressed concerns about neighbourhood character, parking, building size and the effect of nearby construction.

Investors who purchased or developed rental properties expecting stronger rental conditions are now facing greater competition.

Wayne and Gabby question whether Edmonton could have achieved its housing objectives using a more gradual approach, with additional restrictions on building heights, density, lot configurations or parking.

Neither claims to have a simple solution.

Instead, they discuss the difficulty of balancing housing affordability, homeowner concerns, development incentives and municipal commitments.

Edmonton's Rental Market Is Becoming More Competitive

The rapid expansion of rental housing is also affecting investors.

Wayne discusses how some newly constructed rental properties that previously commanded strong rents are now competing against an increasing number of similar units.

In some cases, he reports seeing substantial rent reductions as landlords compete to attract tenants.

He also raises concerns about developers whose projects were financed using aggressive assumptions about rental income, operating expenses and future market conditions.

Higher vacancy, lower rental income and thin operating margins can create serious problems when mortgage renewals or refinancing occur.

His concern is that some investors were attracted by the ability to build a large number of units without paying enough attention to the underlying profitability.

A multimillion-dollar portfolio is not automatically a successful investment.

The important question is how much money the properties actually generate relative to the capital invested and the risks involved.

How Wayne Adjusted His Investing Strategy

Rather than participating heavily in the type of high-density infill development he expected to become oversupplied, Wayne explains that he began repositioning his own portfolio.

His focus shifted toward properties and rental categories he believed would remain attractive to tenants and buyers even as additional supply entered the market.

This meant paying close attention to long-term demand, property types, rental competition and which parts of the market were most likely to remain resilient.

Wayne believes investors need to recognize changing conditions before they become obvious to everyone else.

Real estate investing requires looking several years into the future rather than reacting only to what is happening today.

What Happens Next?

Even if Edmonton changes its zoning regulations, Wayne points out that development will not stop overnight.

Projects already approved or under construction may continue adding rental supply for years.

That means the consequences of Edmonton's recent development boom could remain visible in the rental market long after any regulatory changes take effect.

Wayne and Gabby encourage investors to focus on understanding their markets, preparing for future conditions and making investment decisions based on sound fundamentals rather than political headlines.

They also preview upcoming discussions about Canada's foreign buyer restrictions and mortgage financing.

Also Discussed in This Episode

• Why Wayne believes Edmonton needed more housing in 2023

• How Edmonton's 2024 zoning changes accelerated infill development

• The evolution of row housing, basement suites and multi-unit infill configurations

• Why homeowners are protesting developments in mature neighbourhoods

• The original purpose of the federal Housing Accelerator Fund

• The difference between government funding commitments and actual spending

• Why municipal development targets matter

• The importance of reviewing Edmonton's complete CMHC agreement

• How additional rental supply has changed Edmonton's investment market

• Why some developers may struggle at refinancing

• How real estate investors can reposition their portfolios during market changes

• Why long-term investment planning matters more than reacting to headlines

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

The Canadian Real Estate Investing Morning Show provides free real estate investing education, practical advice, market analysis and real-world lessons from experienced Canadian real estate investors.

With more than 1,000 episodes, Wayne and Gabby discuss rental properties, financing, investment strategies, market trends, entrepreneurship and building sustainable long-term wealth.

REI Masters Mentorship Program

Want personal coaching from Wayne and Gabby?

The REI Masters Mentorship Program provides ongoing real estate investing education, coaching, practical resources and guidance for Canadians who want to build successful rental property portfolios.

Learn more or book a discovery call:

www.reimasters.ca

Our Sponsors

Kirkwood & Brennan Mortgage Group

Investor-focused mortgage financing and portfolio planning.

www.kbmortgages.ca

Contact Keaton Kirkwood at [email protected].

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services for real estate investors.

www.finngo.com

Calvin Realty

Real estate services for investors looking to buy strategically and identify opportunities.

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.

Bring your real estate investing questions and join the discussion with Wayne, Gabby and Canadian investors from across the country.

New episodes every weekday morning.

How to Buy Your First Rental Property in Canada: 5 Essential Steps

Buying your first rental property could be one of the best financial decisions you ever make. But without the right education, planning, and systems, it could also become one of your biggest financial mistakes.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby Hillier take things back to basics and walk through the five essential steps to buying your first rental property in Canada.

After more than 15 years of real estate investing experience, Wayne and Gabby have learned that successful investing is about much more than finding a property, getting a mortgage, and collecting rent.

It's about choosing the right market, understanding financing, selecting the right property, attracting quality tenants, and making sure the numbers work for the long term.

More importantly, it's about building a rental property business that can withstand difficult economic conditions without forcing you to sell.

The 5 Steps to Buying Your First Rental Property Step 1: Choose the Right Market

Not every Canadian real estate market offers the same investment opportunities.

Wayne explains why larger markets with diversified economies can be less risky than smaller communities that depend heavily on one employer or industry.

When choosing a market, investors should evaluate several important factors:

• Economic diversity and long-term stability

• Provincial landlord and tenant legislation

• Opportunities to purchase undervalued properties

• Potential for long-term property appreciation

• Availability of properties that generate sufficient cash flow

• Whether the market can support a rental investment over the next 20 years

Wayne also explains why understanding a market means looking beyond the city itself. Investors need to study individual neighbourhoods, streets, property types, purchase prices, rental demand, and historical performance.

A market might look inexpensive compared to Toronto or Vancouver, but that doesn't automatically make it undervalued.

Step 2: Understand Rental Property Financing

Financing an investment property is different from financing your personal residence.

While qualified buyers may be able to purchase an owner-occupied home with as little as 5% down, a conventional non-owner-occupied rental property generally requires a minimum 20% down payment.

Wayne explains why investors should start working with a mortgage broker who specializes in rental properties, especially if their goal is to build a portfolio rather than own just one investment property.

The mortgage you choose today could affect your ability to purchase additional properties in the future.

The episode also briefly explores seller financing, including agreements for sale, and why these advanced strategies require proper education, ethical practices, and careful planning.

Step 3: Choose the Right Property Type

Single-family houses, townhouses, duplexes, basement suites, apartment condos, and multifamily properties all perform differently.

Some properties offer excellent rental demand but limited appreciation potential.

Others may appreciate well but struggle to generate enough rental income.

Wayne and Gabby explain why investors should look for properties that balance both long-term appreciation potential and rental profitability.

The best investment isn't necessarily the cheapest property or the one with the most units.

It's a property that people want to rent today and that future buyers will want to own.

Step 4: Choose the Right Tenant

Tenant selection is one of the most important parts of operating a successful rental property business.

Wayne and Gabby share stories from listeners about their first rental investments, including mistakes involving student rentals, tenant screening, and inherited leases.

They explain why buying the property is only the beginning.

A rental property needs to be managed successfully for years, potentially decades, to fully benefit from the investment.

Frequent tenant turnover can create substantial vacancy expenses, additional repairs, cleaning costs, and lost rental income.

A tenant who stays for many years can have an enormous impact on long-term profitability.

They discuss the importance of:

• Understanding who your ideal tenant is before purchasing

• Choosing properties that meet long-term tenant needs

• Verifying employment and income

• Checking affordability and allowing room for future rent increases

• Reviewing credit history

• Contacting previous landlord references

• Building systems that encourage good tenants to renew

Step 5: Run the Numbers

This is where investors need to understand how rental properties actually generate wealth.

Wayne explains the three primary profit centres of rental property investing.

Mortgage Paydown

Each mortgage payment gradually reduces the outstanding loan balance, increasing your equity in the property.

Over a long holding period, this can contribute significantly to the overall return.

Property Appreciation

When the value of a rental property increases, the investor builds additional equity.

Although appreciation can become one of the largest contributors to long-term returns, it isn't guaranteed and should never be the only reason for purchasing a property.

Cash Flow

Cash flow is the money remaining after the rental property's operating expenses and financing costs are paid.

While cash flow may represent a smaller portion of total long-term profits, Wayne argues it serves an even more important purpose: protecting the investment.

Cash flow allows landlords to build reserves, pay for repairs, cover vacancies, and withstand unexpected financial challenges without constantly contributing their own money.

Why Cash Flow Is Your Greatest Protection

One of Wayne's strongest messages in this episode is that investors should not rush to spend the cash flow from their rental properties.

Instead, that money should remain in the business to create a financial buffer.

He explains why investors should consider starting with a reserve equal to approximately three months of rental income and continuing to build it using the property's monthly cash flow.

When a furnace needs replacing, a tenant moves out, insurance increases, or interest rates change, the business should have enough money available to handle those expenses.

This is also where Wayne introduces his 5% Rule™ Cash Flow Test, designed to help Canadian investors evaluate whether their rental properties produce sufficient cash flow to withstand difficult conditions.

Rather than relying on appreciation to rescue an underperforming investment, the goal is to purchase properties that remain profitable even if their market values do not increase.

Why Real Estate Investing Is a 20-Year Game

Real estate investing is not about getting rich overnight.

Wayne and Gabby explain why they approach rental properties as long-term businesses that need to survive multiple market cycles.

Over 20 years, investors may experience rising interest rates, declining property values, tenant turnover, vacancy, changes to landlord legislation, economic downturns, and unexpected repairs.

The objective isn't to predict every challenge.

It's to build an investment that can survive those challenges.

A property that generates sufficient cash flow, steadily pays down its mortgage, and has long-term appreciation potential can create substantial wealth when given enough time.

Wayne's message to new investors is to focus on the fundamentals, keep learning, and avoid making decisions based on fear or short-term market headlines.

Also Discussed in This Episode

• Why Wayne believes agreements for sale and seller financing may become more relevant again

• The importance of ethical seller financing practices

• Lessons from listeners' first rental property purchases

• Why experienced investor-focused mortgage brokers matter

• The risks of investing in communities dependent on a single employer

• Why low-priced properties aren't necessarily undervalued

• How to evaluate tenant demand and resale demand together

• The hidden long-term cost of tenant turnover

• How to calculate return on investment using mortgage paydown, appreciation, and cash flow

• Why investors should avoid spending their rental property cash flow too early

• How reserves help protect against forced sales

• Why ongoing education and property management systems matter

Wayne also previews an upcoming discussion about Alberta Premier Danielle Smith's announcement regarding Edmonton's zoning bylaws and what potential changes could mean for local real estate investors.

Learn the 5% Rule™

Wayne Hillier's book, The 5% Rule, explains the cash flow test he and Gabby use to evaluate their rental property investments.

Designed specifically for Canadian real estate investors, the book breaks down how much cash flow a property should generate to help protect against unexpected expenses, vacancy, and changing market conditions.

Search for The 5% Rule by Wayne Hillier on Amazon.

About the Canadian Real Estate Investing Morning Show

Join real estate investing coaches Wayne and Gabby Hillier live every weekday morning at 7:00 AM Mountain Time.

With more than 1,000 episodes, the Canadian Real Estate Investing Morning Show provides free real estate investing education, practical advice, portfolio-building strategies, and answers to real questions from Canadian investors.

Whether you're buying your first rental property or growing an established portfolio, Wayne and Gabby share lessons from their own real estate investing experience.

REI Masters Mentorship Program

Looking for more personalized real estate investing education and support?

The REI Masters Mentorship Program provides direct coaching with Wayne and Gabby, investor education, practical resources, ongoing mentorship, and support for Canadians looking to build long-term real estate wealth.

Learn more or book a discovery call at:

www.reimasters.ca

Our Sponsors

Kirkwood & Brennan Mortgage Group

Investor-focused mortgage financing and portfolio planning.

www.kbmortgages.ca

Contact Keaton Kirkwood at [email protected].

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services for real estate investors.

www.finngo.com

Calvin Realty

Real estate services for investors looking to buy strategically and identify opportunities.

Join the Conversation

Watch the Canadian Real Estate Investing Morning Show live every weekday at 7:00 AM Mountain Time on YouTube.

Bring your questions, share your investing experiences, and learn alongside other Canadian real estate investors.

New episodes every weekday morning.

Edmonton's Multi-Unit Garden Suite Opportunity: Why the Window May Be Closing

Canadian Real Estate Investing Morning Show with real estate investing coaches Wayne & Gabby Hillier

Edmonton has created one of the most unique real estate investing opportunities Wayne has seen in years, but he believes the window to take advantage of it may already be starting to close.

In today's episode, Wayne and Gabby give a detailed update on several of their multi-unit garden suite developments across Edmonton. They talk about what is actually happening on the construction sites, the challenges they have encountered, how these projects are being financed, how they are creating equity, and why they are continuing to build even as Edmonton's rental market becomes more competitive.

Wayne first started developing the concept for these projects in early 2024. The basic strategy is to take an existing residential property and add multiple new rental units in the backyard. Their preferred model is a four-unit garden suite, which can turn a property with one existing house into a five-unit property, or six units when the original house already contains a secondary suite.

That shift can completely change the economics of the investment.

🧠 What You'll Learn in This Episode

• What a multi-unit garden suite is and why Edmonton created such a unique opportunity for investors

• Why Wayne believes Edmonton's current development rules may eventually be tightened

• What investors should look for when researching zoning and garden suite regulations in their own municipality

• Why lot size, setbacks, building height, unit count and site coverage can determine what is possible

• Why Wayne and Gabby settled on the fourplex garden suite as their preferred model

• How a residential property can become a five or six-unit multifamily property

• Why reaching five units can open the door to commercial financing

• The difference between a comparable-sales appraisal and an income approach appraisal

• How net operating income and capitalization rates can determine commercial property value

• Why some of their projects may create approximately $250,000 to $300,000 in additional equity

• How adding a fourplex garden suite can turn a property that fails the 5% Rule™ into one that passes

• Why Wayne is still building despite rising rental vacancy and increasing rental competition in Edmonton

• How reserves and strong cash flow help investors survive periods of higher vacancy

• Why investors need to think in 15 and 20-year timeframes rather than focusing only on the next few years

🏗️ The Reality of Developing Garden Suites

Development rarely goes exactly according to plan.

Wayne and Gabby share some of the unexpected challenges their projects experienced during Edmonton's unusually wet summer.

At one property, the alley directly behind their development was shut down while drainage infrastructure was upgraded. The timing could not have been worse because trades needed rear access to continue working on the fourplex garden suite.

The project essentially stopped for weeks.

Heavy rainfall created other problems as well. Trenches connecting existing utilities to the new buildings filled with water and crews had to continuously pump them out.

Despite those delays, the project is moving again. Rough-ins are substantially complete, drywall is underway, and the project is progressing toward the finishing stages.

🌳 When Everything Goes Wrong at Once

Another north Edmonton project has had its own collection of memorable problems.

Shortly before trees were scheduled to be removed from the property, a storm knocked one over.

The tree came down across the yard, damaged the fence and landed on the neighbour's Mustang.

Then, while the remaining trees were being removed, part of a tree was accidentally dropped onto the existing shed and damaged it.

Despite everything that happened before construction even got going, framing is now complete, the windows have been installed, and the project is approaching lockup.

Plumbing groundwork is underway, with rough-ins and the remaining construction stages to follow.

🏠 Their First Fourplex Garden Suite Is Almost Finished

The west Edmonton project many REI Masters members have seen during Edmonton bus tours is approaching completion.

It has passed its electrical final inspection and is nearing its HVAC final inspection.

The driveway and sidewalks have been poured, landscaping and final grading are underway, and Wayne and Gabby are working through the final details including fencing, cleanup, drywall touch-ups and a few minor plumbing repairs.

Their goal is not simply to finish quickly.

They want the property completely ready before prospective tenants walk through it.

First impressions matter, especially in a rental market where tenants have more options.

💡 Why Gabby Was Surprised by the Finished Units

One of the biggest surprises has been how the completed garden suites actually feel.

At approximately 640 square feet, it can be difficult to visualize the finished space when looking only at architectural drawings.

Once the units were completed, Gabby said they felt completely different than she expected.

They have natural light.

They are above ground.

They are brand new.

They are quiet.

They feel like actual homes.

That distinction could be extremely important as rental competition increases in Edmonton.

A prospective tenant searching for a one-bedroom rental may otherwise be comparing older apartment buildings or basement suites. A new above-ground garden suite can offer a very different living experience within a similar rental category.

📉 Edmonton's Rental Market Is Changing

Wayne does not believe Edmonton landlords should assume the rental conditions of the last few years will continue.

A significant amount of new rental housing has entered the market.

Vacancy is increasing.

Competition is increasing.

And rents may face pressure.

That does not mean Wayne is stopping development.

In fact, it is one of the reasons he believes these projects need to be viewed through a much longer investment horizon.

If Edmonton eventually changes its development rules and these projects can no longer be built, waiting until rental conditions are perfect could mean waiting until the opportunity itself has disappeared.

Wayne is willing to deal with a few more difficult years of leasing if the investment still makes sense over 15 or 20 years.

💰 Why Five Units Changes the Financing

One of the most important parts of the strategy is financing.

Once a property contains five or more residential units, investors may be able to move into commercial multifamily financing.

That matters because the property can potentially be valued using the income approach rather than relying exclusively on comparable sales.

With a traditional residential appraisal, the appraiser generally looks for similar properties that have recently sold.

The problem with these multi-unit garden suite projects is that there are very few comparable sales.

Wayne is building them and keeping them.

He is not selling them.

With an income approach appraisal, the property can instead be valued based on the income it generates.

In simple terms:

Net Operating Income ÷ Capitalization Rate = Property Value

If the completed property produces strong net operating income, its value as a multifamily investment can potentially be substantially higher than what the house and construction costs would suggest under a residential comparable approach.

On some of Wayne and Gabby's projects, that difference could represent approximately $250,000 to $300,000 of additional equity.

📊 Turning a Property That Fails the 5% Rule™ Into One That Passes

This may be one of the most important applications of the strategy.

Investors regularly find good houses in good neighbourhoods that simply do not produce enough cash flow.

The property might otherwise be attractive, but it fails Wayne and Gabby's 5% Rule™ Cash Flow Test.

Now ask a different question:

What happens if you add four additional rental units in the backyard?

The original house may still have mediocre cash flow.

But the fourplex garden suite could generate enough additional income to change the economics of the entire property.

Instead of looking only at what the existing house produces, investors can potentially look at what the entire site could become.

A residential property that does not work today could potentially be transformed into a five or six-unit multifamily asset that does.

⏳ Why Wayne Believes the Opportunity Has a Deadline

Edmonton changed its development rules to encourage more housing construction.

That has worked.

A tremendous amount of new housing is now being built throughout mature neighbourhoods.

Wayne believes the city will eventually begin adjusting those rules.

That could mean changes to building heights, setbacks, site coverage or the total number of units that can be developed on certain lots.

Their current projects are already designed close to what today's regulations allow.

Even relatively small changes could make the current fourplex model difficult or impossible on many properties.

That is why Wayne views this as a temporary window.

Real estate opportunities do not remain available forever.

Financing changes.

Markets change.

Construction costs change.

Municipal regulations change.

The investors who recognize an opportunity while the conditions exist are often the ones who benefit from it years later.

🏡 Edmonton Garden Suites

Interested in finding out what could potentially be built on an Edmonton property?

Visit:

www.edmontongardensuites.com

You can review the available models and book a free consultation to discuss a property, lot dimensions, development options and potential next steps.

The four-unit model Wayne and Gabby are currently building is called the Everly.

👥 About Your Hosts

Wayne and Gabby Hillier are real estate investing coaches, entrepreneurs and long-time real estate investors based in Edmonton, Alberta.

Through REI Masters, they help Canadian real estate investors learn how to analyze properties, build sustainable portfolios, improve cash flow, work with joint venture partners and approach real estate investing as a long-term business.

Wayne and Gabby host the Canadian Real Estate Investing Morning Show live every weekday morning at 7:00 AM Mountain Time, discussing Canadian real estate investing, market conditions, rental properties, financing, entrepreneurship and what is happening inside their own portfolio.

💡 Resources & Contact

REI Masters Mentorship Program www.reimasters.ca

Edmonton Garden Suites www.edmontongardensuites.com

Listener Questions [email protected]

Join Wayne and Gabby live every weekday morning at 7:00 AM Mountain Time on YouTube.

📅 Upcoming Events REI Masters Retreat

October 16–17, 2026 Edmonton, Alberta

Two days of real estate investing education, strategy, networking and hands-on learning with the REI Masters community.

Learn more at:

www.reimasters.ca

🤝 Thanks to Our Sponsors Calvin Realty

Real estate services for investors looking to buy, sell and build their portfolios.

www.calvinrealty.ca

Finngo Bookkeeping & Tax

Specialized bookkeeping and tax services built for real estate investors.

www.finngo.com/rei

Kirkwood & Brennan Mortgage Group

Mortgage planning and financing strategies specifically designed for real estate investors.

www.kbmortgages.ca

[email protected]

The Edmonton Rental Market Has Changed. Landlords Need to Adapt.

The Edmonton rental market isn't what it was in 2023 or 2024.

For several years, landlords benefited from an unusually strong environment. Vacancy was low, rents climbed quickly and strong tenants sometimes competed for available properties.

That environment is over.

Wayne and Gabby have been anticipating the shift for several years, but today they argue it has become impossible to ignore. Edmonton is moving into a more balanced, tenant-friendly rental environment, and landlords who continue operating as though tenants have no alternatives could find themselves sitting on vacancies.

The good news is that this isn't necessarily a crisis.

It's a different cycle.

What Wayne and Gabby Are Seeing in the Trenches

Market reports provide useful information, but Wayne believes one of the best ways to understand a rental market is to participate in it.

Wayne and Gabby are currently buying properties, renovating rentals, advertising vacancies, conducting showings, reviewing applications and communicating directly with prospective tenants.

That provides immediate feedback.

A few years ago, prospective tenants were asking how quickly they could move in. Some arrived at showings with documents prepared and were ready to complete applications immediately.

Today, the conversation is different.

Tenants are asking whether landlords will complete certain repairs or improvements. They're attending multiple showings. They're comparing properties before applying.

Some applicants get approved and then disappear because they've chosen another rental.

Tenants have options again.

Edmonton Rental Affordability Has Improved

One interesting piece of information discussed today came from CMHC.

Edmonton was identified as one of the exceptions among major Canadian markets where rental affordability for existing tenants had improved, driven by slower rent growth associated with increased supply along with stronger wage growth.

Wayne and Gabby question exactly how broadly that wage growth is being experienced by Edmonton households, but the supply side of the equation is much easier to see.

Edmonton built an enormous amount of rental housing.

And that supply is now competing for tenants.

Vacancy Is Rising

Edmonton's 2025 average vacancy rate was approximately 3.8%.

The estimate discussed for 2026 is approximately 4.5%, although the final number isn't available yet.

Wayne predicts it could ultimately come in around 4.7%, while Gabby's guess is 4.8%.

More importantly, Wayne explains that a vacancy rate in this range doesn't automatically mean Edmonton has a terrible rental market.

Historically, a vacancy rate roughly between the mid-3% range and around 6% can represent much more balanced conditions in Edmonton.

The last few years were unusual because vacancy became extremely tight.

Landlords who entered the business during that period may mistakenly believe those conditions were normal.

They weren't.

Taking several weeks to fill a vacancy is not necessarily a disaster.

It may simply be a normal rental market.

The Supply Problem

The larger concern is what happens next.

Edmonton has experienced an extraordinary rental construction boom.

Apartments, infill developments, row houses, main-floor suites and basement suites have added significant rental inventory.

Wayne believes this increased supply could keep vacancy elevated for several years and is planning his portfolio around the possibility of three to four years of more competitive conditions.

That doesn't mean every rental category will behave the same way.

In fact, that's one of the most important lessons from today's episode.

Edmonton Basement Suite Rents

Based on Wayne's recent market-rent research, basement suites are generally sitting around:

$1,000 to $1,200 per month

Lower-quality and smaller units tend toward the lower end, while larger and higher-quality units can command more.

Basement suites remain one of Edmonton's most affordable rental options, which provides some protection.

But supply is enormous.

Even if your rent is technically appropriate, you're competing against a large number of similar properties.

Wayne has personally reduced some basement-suite rents below $1,000 to get them occupied.

Main-Floor Suite Rents

Three-bedroom main-floor suites are currently approximately:

$1,500 to $1,700 per month, excluding garages.

This category has experienced some of the most dramatic pressure.

During the peak rental market, some main-floor suites were achieving rents around $2,200.

That has changed significantly.

The issue is supply.

Edmonton has added a huge number of properties using essentially the same model: main-floor rental above a basement suite.

When hundreds or thousands of landlords offer similar products, tenants gain negotiating power.

For investors who purchased newer fourplexes with secondary suites based on peak rents, a decline of several hundred dollars per unit can dramatically alter projected cash flow.

Edmonton Townhouse Rents

Older condo townhouses without garages are approximately:

$1,700 to $1,800 per month.

Wayne continues to like townhouses because they occupy an interesting middle ground.

A tenant gets three bedrooms, more privacy, their own basement in many cases and often some outdoor space without paying the price required for an entire detached house.

That's one reason Wayne believes townhouses have maintained relatively strong tenant demand.

Edmonton Full-House Rents

Single-family houses and some half-duplexes with garages are generally around:

$2,100 to $2,200 per month.

This category has been considerably more stable.

Wayne believes full-house rents may continue increasing gradually, but probably not at the dramatic pace Edmonton experienced during the recent rental boom.

This illustrates why landlords need to stop treating "Edmonton rent" as one number.

A basement suite, main-floor suite, townhouse and detached house can experience completely different supply-and-demand conditions within the same city.

Landlords Need to Compete Again

The biggest operational lesson from today's episode is straightforward:

You have competitors now.

Simply putting a rental online and waiting for applications isn't enough.

Landlords need professional advertising, attractive properties, appropriate pricing, fast communication and efficient screening systems.

If two similar properties are available and one landlord responds faster, presents a better product or offers better value, that landlord can win the tenant.

Should Landlords Offer Incentives?

Wayne expects incentives to become more common.

That could include discounted rent, free-rent periods, reduced fees or other offers designed to make one property stand out.

Wayne doesn't particularly like incentives.

But if competing properties are priced similarly and one includes an attractive incentive, landlords need to recognize that they're competing against it.

The market decides.

Do NOT Lower Your Tenant-Screening Standards

This may be the most important warning from the episode.

After a property sits vacant for several weeks, landlords can become desperate.

Then an application arrives.

Maybe the credit isn't strong enough. Maybe income doesn't meet the affordability standard. Maybe employment is questionable.

But the landlord has another mortgage payment coming.

That's when emotional decisions happen.

Wayne and Gabby strongly recommend resisting that temptation.

An additional month of vacancy can be expensive.

A bad tenancy can be considerably more expensive.

Maintain your standards.

Screen Faster, Not Worse

The solution isn't lowering screening standards.

It's becoming better and faster.

In a competitive market, strong applicants may have applications submitted to several landlords simultaneously.

If it takes you days to review an application, another landlord may approve that tenant first.

Wayne and Gabby's approach is thorough screening performed efficiently.

Know exactly what you're looking for before applications arrive.

Then execute.

This Is Why You Need Reserves

A landlord without reserves is much more likely to make bad decisions.

If you desperately need next month's rent to make the mortgage payment, waiting another few weeks for a qualified tenant becomes extremely difficult.

That's why Wayne continually argues that rental-property cash flow shouldn't be treated as spending money.

Cash flow builds reserves.

Reserves buy patience.

And patience allows landlords to make better business decisions when market conditions become difficult.

It May Be Time to Improve Your Rental

Wayne generally doesn't recommend renovating rental properties simply to make them prettier.

In a landlord's market, the return may not justify the investment.

Today may be different.

If spending several thousand dollars on flooring, paint or another strategic improvement makes the property significantly more desirable and reduces a two-month vacancy to two weeks, that improvement can generate a measurable return.

The objective isn't luxury.

It's competitiveness.

Don't Panic

The Edmonton rental market has changed.

That doesn't mean landlords should sell everything or stop buying.

Rental markets naturally move through cycles.

What was unusual was the extremely favourable environment Edmonton experienced over the past several years.

Wayne and Gabby have been preparing for this shift while continuing to acquire properties because their strategy isn't dependent on perfect conditions.

They invest with a 15-to-20-year horizon.

Properties need enough cash flow and financial resilience to survive both good markets and bad ones.

That's the purpose of the 5% Rule™.

The 5% Rule™

(Annual Cash Flow ÷ Down Payment) × 100

5–6% = sufficient 7–9% = strong 10%+ = excellent

Search "The 5% Rule by Wayne Hillier" on Amazon.

Canadian Real Estate Investing Morning Show

Hosted by Wayne Hillier and Gabby Hillier.

Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta.

www.reimasters.ca

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