Real Estate Investing Morning Show ( REI Investment in Canada )

Should You Invest in Vancouver, Montreal or Laval? Plus the 2 Numbers Wayne Uses to Analyze Deals

Can you find a good rental property in Montreal or Laval?

Should you invest in Vancouver?

What numbers actually matter when analyzing a rental property?

And if you already bought a bad deal, should you hold it and hope it recovers, or sell it and move on?

Today's episode of the Canadian Real Estate Investing Morning Show is another investor Q&A covering exactly those questions.

Wayne and Gabby break down how to evaluate a market, how borrowed down-payment funds affect cash flow, why Wayne would personally avoid certain provinces even when the numbers appear to work, and the two metrics he actually uses to compare real estate deals.

The main message:

Don't force a market to work.

Find the market, property type and deal that actually fit your investment criteria.

Can You Cash Flow in Montreal or Laval?

A listener from Laval, Quebec asks whether it is realistic to find a property in Laval or Montreal that meets Wayne's cash-flow criteria.

Wayne says it may be possible.

But instead of starting with one predetermined property type, investors should study the entire market.

Look at:

• Apartment condos
• Townhouse condos
• Duplexes
• Single-family houses
• Houses with secondary suites
• Small multifamily
• Larger multifamily

Then compare purchase prices across different neighbourhoods with the rents those properties can realistically achieve.

The goal is to become a master of the market.

You need to know:

What different property types cost.

What different neighbourhoods cost.

What tenants will pay.

What areas attract stronger tenants.

Which property types produce the best rent-to-price relationship.

Only then can you determine which opportunities deserve deeper investigation.

Don't Start With the Strategy and Force the Market

The listener specifically mentions wanting to purchase a plex.

Wayne's approach would be slightly different.

Instead of deciding:

"I want to buy a plex."

Start with:

"Which asset type in this city produces the best combination of cash flow, tenant profile, risk and long-term potential?"

Maybe that is a plex.

Maybe it is a townhouse.

Maybe it is a suited house.

Maybe it is something completely different.

Do not force the property type.

Follow the numbers.

Borrowing Your Down Payment From Home Equity

The listener is also considering borrowing against their existing home to fund the down payment.

Wayne likes the concept of taking otherwise unused equity and redeploying it into another productive asset.

But there is an obvious trade-off.

Borrowing the down payment creates additional debt.

Additional debt means additional monthly interest.

That increases the risk.

If the investment property itself produces $500 per month in cash flow but the borrowed down payment costs $300 per month to service, the investor's actual financial position is very different.

That needs to be considered.

Look at the Entire Portfolio

When investors use equity from one property to fund another, Wayne sometimes prefers looking at the cash flow of the entire portfolio instead of judging only the new property in isolation.

Maybe one property produces excellent cash flow.

Another is tighter.

Together, the portfolio may still be healthy.

The question becomes:

Does the entire portfolio still pass the cash-flow test and remain resilient?

Borrowing money to scale increases potential profits.

But it also increases risk.

The goal is finding the right balance.

Borrowed Investment Funds May Be Tax Deductible

Gabby also points out an important tax consideration.

When money is borrowed and used for qualifying investment purposes, the interest may be deductible.

That can reduce the true after-tax cost of the borrowed funds.

Investors should confirm the exact treatment with a qualified accountant based on their specific circumstances.

Why Wayne Still Wouldn't Choose Quebec

This is where Wayne's answer changes.

Could somebody potentially find a property in Quebec that produces good cash flow?

Yes.

Would Wayne personally want to operate his rental-property business there?

No.

The issue is the landlord and tenant laws.

Wayne views real estate as a business.

And if the jurisdiction makes it unnecessarily difficult to operate that business, enforce agreements or manage risk, that becomes a major negative.

Even if the numbers work.

For Wayne, that can be enough to eliminate the market.

A Great Deal in the Wrong Province Can Still Be the Wrong Deal

Wayne compares Quebec with other provinces where investors have historically found strong deals.

The purchase price might work.

The rent might work.

The appreciation potential might work.

But if the operating environment creates significantly more landlord risk, the deal becomes less attractive.

Wayne would rather invest in a market where:

The property works.

The cash flow works.

The tenant profile works.

The long-term fundamentals work.

And the laws support the operation of the business.

Wayne's "Ice Age" Theory

Wayne again discusses the idea of real estate markets entering an "ice age."

A market can become temporarily unattractive when prices rise faster than rents and household affordability.

That does not mean the city is permanently bad.

It means investors may need to wait.

Calgary is one market Wayne currently describes this way.

He believes Edmonton will eventually reach a similar stage.

When that happens, he will look for the next market where the fundamentals work better.

What Numbers Should Investors Actually Follow?

Another listener asks which indicators they should use when analyzing deals.

They currently look at:

• Cap rate
• Cash flow
• ROI
• DSCR
• The 1% rule
• Other rules of thumb

Wayne simplifies it dramatically.

He primarily focuses on two things:

Return on Investment

and

The 5% Rule™ Cash Flow Test

That is it.

Metric #1: Return on Investment

ROI tells Wayne how profitable the investment is.

It allows him to compare completely different properties using one common measure.

A townhouse.

A suited house.

A multifamily building.

A condo.

A garden-suite development.

Whatever the property type, the question is:

For every dollar I invest, how much profit am I receiving back?

Wayne looks at total profits from:

• Cash flow
• Mortgage principal paydown
• Appreciation

Then compares those profits with the initial investment.

He generally prefers looking over longer holding periods rather than focusing only on year-one returns.

Real estate is a long-term investment.

Metric #2: The 5% Rule™ Cash Flow Test

Profitability is only half the equation.

The other half is risk.

Wayne uses cash flow as his primary risk measure.

The more cash flow a property produces, the greater its ability to absorb:

• Lower rents
• Higher mortgage payments
• Repairs
• Vacancy
• Increasing expenses
• Unexpected economic changes

Imagine one property produces $500 per month.

Rent falls by $200.

You still have $300.

Another property produces only $100.

Rent falls by $200.

Now you are losing money.

Multiply that across a 20-property portfolio and suddenly a small monthly problem becomes a very large one.

That is why Wayne created the 5% Rule.

Profitability + Risk

Wayne's approach is to balance:

ROI = profitability

with

Cash flow = risk protection

A property can have an incredible projected return but still be dangerously fragile.

Another property can be extremely safe but produce disappointing returns.

The goal is finding investments that score well in both areas.

Wayne Doesn't Use the 1% Rule

Wayne considers rules such as the 1% rule outdated and overly simplistic.

The bigger question is:

Why 1%?

What exactly is it measuring?

Profitability?

Risk?

Financing?

There is often no clear reasoning behind the number.

Wayne prefers metrics where he understands exactly what they are measuring and why they matter.

A Listener Bought a Vancouver Condo and Regrets It

Another listener writes in after purchasing a condo in the Greater Vancouver area.

They say the property is losing several hundred dollars every month.

They relied heavily on their realtor.

They did not educate themselves first.

And after finding the Morning Show, they realized they had done exactly what Wayne warns investors not to do.

Their questions:

Should they continue investing in Vancouver?

Should they invest somewhere else?

And how do they get out of the condo?

Would Wayne Invest in Vancouver?

Wayne's answer:

No.

He does not believe Vancouver currently fits the five fundamentals he uses when selecting markets and investments.

His issue is not whether Vancouver real estate can appreciate.

It obviously can.

His problem is that Wayne does not buy properties primarily to speculate on appreciation.

He wants to purchase a profitable rental business.

If the rent cannot pay the operating costs and produce sufficient cash flow, he is not interested.

Appreciation Is Not Enough

Someone can buy a Vancouver condo and hope it goes up in value.

That is a strategy.

It is simply not Wayne's strategy.

Wayne wants:

• Positive cash flow
• Mortgage paydown
• Long-term appreciation potential
• A strong tenant profile
• A supportive operating environment

The property needs to make sense without requiring appreciation to rescue the investment.

Should You Invest Outside Your Home City?

Yes.

Wayne believes investors should go where the fundamentals work.

You do not need to live in the same city as your rental property.

Wayne and Gabby already manage properties they rarely or never physically visit.

The solution is building:

• The right team
• Communication systems
• Maintenance systems
• Inspection systems
• Contractor relationships
• Documentation systems

Location matters far less once the management system works.

How Do You Get Out of a Bad Vancouver Condo?

Wayne's first answer is straightforward:

Talk to your realtor and understand what the property can realistically sell for.

Then calculate:

• Mortgage penalty
• Realtor fees
• Legal fees
• Current market value
• Remaining mortgage
• Potential loss
• Tax implications
• Net proceeds

Then determine whether continuing to hold the property actually improves the situation.

Wayne warns against holding a bad investment indefinitely simply because you want to "break even."

Sometimes the best decision is to accept the loss, learn from it and redeploy the remaining capital into a better opportunity.

Don't Make the Next Decision Based on the Last Mistake

A bad deal does not mean real estate investing does not work.

It means that particular deal did not work.

The most important thing is learning from it.

Get educated.

Understand the market.

Understand the numbers.

Create proper criteria.

Then try again with a stronger foundation.

Ghost Listings for Rental Research

Another viewer asks about posting a rental listing before the property is actually available to test the market rent.

Wayne explains that investors sometimes use "ghost listings" to gauge demand at a particular price.

But Gabby raises an important concern.

If tenants currently occupy the property, posting their home for rent before it is actually available can create unnecessary problems.

There is also a timing issue.

If you post the listing in September to determine what rent you can get in December, you are collecting September data.

Rental markets are seasonal.

The information may not accurately reflect what tenants will pay months later.

Ask the Right Professional

Wayne closes the discussion with another important principle:

Use professionals for what they actually specialize in.

A realtor brokers real estate transactions.

A mortgage broker arranges financing.

A lawyer provides legal guidance.

A contractor performs construction.

That does not automatically make any of them qualified to provide investment strategy.

Build a team of strong professionals.

But remain the CEO of your own real estate business.

Remote Property Management Course – 50% Off This Week

Gabby's Remote Property Management Course is currently 50% off.

The eight-module course teaches the systems Wayne and Gabby use to remotely manage their own rental portfolio.

Use code:

50OFF

at:

www.reimasters.ca

Edmonton Real Estate Investing Course

Want to learn Edmonton neighbourhoods, property types, tenant profiles and investment opportunities?

The Edmonton Real Estate Investing Course is available at:

www.reimasters.ca

REI Masters Mentorship

Work directly with Wayne and Gabby on market selection, acquisitions, deal analysis, financing, property management, joint ventures and building a profitable Canadian real estate portfolio.

www.reimasters.ca

The 5% Rule™

Learn Wayne Hillier's cash-flow framework for Canadian rental properties.

Search:

The 5% Rule by Wayne Hillier

on Amazon.

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Upcoming Event

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Mortgage Rates Are Rising: How Real Estate Investors Should Prepare

Mortgage rates are moving higher again.

For real estate investors, that raises an obvious question:

What should you actually do about it?

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby are joined by investor-focused mortgage broker Keaton Kirkwood of Kirkwood & Brennan Mortgage Group to break down what is happening with rates, why fixed mortgage rates are already reacting, how variable-rate borrowers should think about the next several months, and how investors can protect their portfolios before higher borrowing costs become a problem.

The biggest message:

You cannot control interest rates. But you can control how prepared your portfolio is for them.

Why Rates Are Moving

Keaton explains that there are two major forces investors need to understand:

Bond yields

and

The Bank of Canada overnight rate

Bond yields react in real time to market expectations, global capital flows and inflation.

Fixed mortgage rates are heavily influenced by bond yields.

The Bank of Canada overnight rate, on the other hand, directly affects prime-based borrowing products such as variable-rate mortgages and HELOCs.

Keaton points out that bond yields have already moved higher.

That means fixed mortgage rates can increase even before the Bank of Canada changes its overnight rate.

Why the U.S. Matters

The conversation also covers what happens when the United States raises rates.

Canada does not operate in isolation.

If other major economies increase rates while Canada does not, that can put downward pressure on the Canadian dollar.

A weaker dollar can make imported goods more expensive.

That can contribute to inflation.

Eventually, Canada may be forced to respond.

Keaton compares global economies to a conga line.

The largest economies are closer to the front.

Canada is somewhere in the middle.

We do not control the direction of the entire global financial system.

This Is Not the First Time

Wayne points out that investors have seen versions of this before.

Inflation.

Rising rates.

Higher mortgage payments.

Financing stress.

The causes may change.

The pattern does not.

That is why the goal should never be to perfectly predict rates.

The goal is to build a portfolio that can survive when rates move against you.

Higher Oil Prices Could Help Alberta

There is one interesting wrinkle.

The current inflation pressure being discussed is connected partly to geopolitical conflict and rising energy prices.

Higher oil and gas prices are painful for consumers.

But Alberta can sometimes benefit economically from stronger energy prices.

That may support:

• Employment
• Investment
• Migration
• Housing demand
• Property values

Keaton cautions that the effect is not equally positive for everybody.

A drilling contractor may benefit directly.

A teacher or accountant may not.

Still, Alberta can sometimes perform relatively well during periods when global energy prices rise.

What Investors Should Do Now

Wayne asks the question most investors actually care about:

Should you pause?

Wait?

Switch mortgage products?

Rush to refinance?

Keaton's answer:

It depends on when you are exposed to higher rates.

If you are in a variable mortgage, you should be paying attention now.

If you have a fixed mortgage renewing within approximately 18 months, you should be paying attention.

If you locked into a relatively high fixed rate previously, it may also be worth reviewing whether restructuring creates an advantage.

That does NOT automatically mean you should refinance.

It means you should investigate.

Keaton's Four Pillars

When deciding whether to restructure a mortgage, Keaton recommends evaluating four things:

1. Cost
2. Qualifying power
3. Risk
4. Tax efficiency

If a change improves three or four of those areas, it may be worth considering.

If the only benefit is saving $50 per month but it costs $15,000 to make the change, that may not make sense.

The decision needs to improve the overall portfolio.

Know Your Break-Even Interest Rate

One of the most important pieces of advice from today's episode:

Know the interest rate at which each property stops cash flowing.

Then calculate the same number for your entire portfolio.

For example:

What happens if rates increase 0.25%?

How much does that reduce monthly cash flow?

What about another 0.25%?

And another?

At what point does the property become cash-flow neutral?

At what point does the entire portfolio require money from your pocket?

Investors should know these numbers before the rate increase arrives.

Stress-Test the Portfolio

Keaton recommends going even further.

Calculate the impact of each quarter-point rate increase.

If every 0.25% increase costs your portfolio $300 per month, you can quickly determine how much room you have.

Maybe your portfolio can absorb:

Three increases.

Five increases.

Seven increases.

The specific number matters less than knowing it.

Uncertainty creates fear.

Knowing the numbers creates a plan.

Cash Flow Is Your Protection

Wayne comes back to the 5% Rule™.

The reason he places so much emphasis on buying strong cash-flowing properties is not because high cash flow simply feels good.

Cash flow creates safety.

If interest rates rise:

You have room.

If rents temporarily fall:

You have room.

If expenses increase:

You have room.

If vacancy rises:

You have room.

The investor who bought a property with almost no cash-flow cushion can be wiped out much faster.

The 5% Rule™

Wayne created the 5% Rule as a simple minimum cash-flow test for Canadian real estate investors.

Its purpose is to ensure investors are not buying properties with such thin margins that one market change destroys the investment.

Search:

The 5% Rule by Wayne Hillier

on Amazon.

Longer Amortizations Can Reduce Risk

Keaton also explains why he often prefers longer amortizations on investment properties.

Longer amortization means:

Lower mortgage payments.

Higher cash flow.

Greater ability to absorb rate increases.

More liquidity.

That does not mean you can never pay the mortgage down faster.

You can use prepayment privileges if you want to accelerate the mortgage later.

But starting with a longer amortization gives the investor more flexibility.

Don't Rush to Pay Off Tax-Deductible Debt

Another important point:

Not all debt costs the same.

Interest on qualifying investment debt may be tax deductible.

Interest on your principal residence generally is not.

That means a 5% tax-deductible investment mortgage may effectively cost less after tax than a 4% non-deductible home mortgage.

Keaton's view is that investors should generally prioritize paying down more expensive non-deductible debt before aggressively eliminating tax-deductible investment debt.

Always confirm the tax treatment with your accountant.

Variable vs Adjustable Rate Mortgages

Keaton also explains an important distinction.

An adjustable-rate mortgage changes the payment as rates move.

A variable-rate mortgage with a fixed payment keeps the payment the same, while the amount going toward principal changes.

For an investor concerned primarily with cash flow, a fixed-payment variable structure can provide more predictability.

The specific product still needs to fit the investor's goals.

What About Leverage?

One listener asks how to hedge rising variable rates when heavily leveraged.

Keaton explains that loan-to-value is only part of the picture.

For cash flow, amortization can be more important.

An investor could have relatively low leverage but a very short amortization and therefore extremely high monthly payments.

That investor may actually be more exposed to rate pressure than someone with more leverage and much lower payments.

The real question is:

How much cash flow does the debt structure require every month?

Liquidity Matters

Keaton also recommends maintaining liquidity.

Cash reserves can make an enormous difference during periods of rising rates.

An extra $20,000 or $30,000 in accessible reserves can give an investor time to work through:

• Higher payments
• Vacancies
• Repairs
• Refinancing
• Renewal timing
• Selling an underperforming property

Liquidity gives you options.

Should You Sell a Weak Property?

Keaton gives an example.

Imagine your portfolio is healthy until rates reach 6%.

But one property is already barely cash-flow neutral today.

That property may deserve a closer look.

If rates rise further, it could become significantly negative.

The question becomes:

Does that asset have another compelling reason to hold it?

Or would selling it now strengthen the entire portfolio?

Asset management means evaluating each property individually, not blindly holding everything forever.

Don't Let Rates Stop You From Buying

The goal of today's conversation is NOT:

"Rates are going up, so stop investing."

It is:

Understand the risk. Prepare for it. Then continue executing the plan.

Higher rates can change the numbers.

They can change which properties make sense.

They can change financing strategies.

But they do not automatically eliminate good real estate opportunities.

Remote Property Management Course – 50% Off This Week

Wayne and Gabby also discuss the response to Gabby's Remote Property Management Course.

The eight-module course teaches the systems Wayne and Gabby use to manage their own rental portfolio remotely without personally attending every property issue.

This week, the course is available for:

50% off

Use code:

50OFF

at:

www.reimasters.ca

About Keaton Kirkwood

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

He works with Canadian real estate investors on financing structures designed to protect cash flow, preserve future borrowing power and avoid mortgage decisions that make the next acquisition harder.

www.kbmortgages.ca

[email protected]

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, financing, market selection, joint ventures, property management and building a profitable Canadian real estate portfolio.

www.reimasters.ca

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Upcoming Event

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Investor Q&A: Garden Suites, Ontario Real Estate, Exit Plans & More

Today's episode of the Canadian Real Estate Investing Morning Show is a full investor Q&A.

Wayne and Gabby answer questions live from Canadian real estate investors about:

• How to eventually exit a real estate portfolio
• Capital gains and tax planning
• When to use a financial planner
• Ontario real estate investing
• Variable vs fixed mortgage rates
• Corporations and rental properties
• Saskatchewan real estate
• Garage door replacement costs
• Assignment deals
• Edmonton garden suites
• And how investors can use education to recognize opportunities faster

The biggest theme throughout today's show is simple:

Ask better questions, get better information, and keep moving forward.

What Does an Exit Plan From Real Estate Look Like?

Craig asks:

What is a realistic exit plan when you're done investing in real estate? Or are you ever actually done?

Wayne's answer depends heavily on what the investor wants next.

Some investors may want to:

• Sell everything
• Convert the portfolio into cash
• Move into lower-maintenance investments
• Create retirement income
• Keep real estate but simplify
• Hand assets down to family
• Continue holding for cash flow

If the plan is to fully liquidate, Wayne recommends building the plan with the right professionals before selling.

That could include:

• An investor-focused accountant
• A qualified financial planner
• A wealth-planning professional
• A real estate coach who understands long-term portfolio planning

The key is knowing what the money is supposed to do after the properties are sold.

Don't Forget the Tax Bill

Wayne emphasizes that investors should not assume every dollar from a property sale becomes spendable cash.

There may be:

• Capital gains tax
• Capital cost allowance recapture
• Legal fees
• Realtor commissions
• Mortgage discharge costs
• Other closing costs

If you sell several properties at once, those tax implications can become significant.

Talk to an investor-focused accountant before liquidating so you know what your actual net proceeds will be.

Selling Is Easy. Planning What Happens Next Is Harder.

The mechanics of selling real estate are relatively straightforward.

Hire the appropriate broker or realtor.

List the properties.

Sell them.

The harder part is deciding what happens to the capital afterward.

If somebody sells a portfolio and ends up with several million dollars, they need to know whether that money is intended to:

Grow.

Generate income.

Preserve wealth.

Fund retirement.

Support family.

Or move into another investment vehicle.

The answer should be based on the investor's goals, not a generic product recommendation.

Be Careful Who You Take Financial Advice From

Wayne also warns investors to be cautious with titles like:

"Wealth planner."

"Investment strategist."

"Financial expert."

A title does not automatically mean somebody has real experience.

Make sure the person has actual qualifications and understands what you are trying to accomplish.

The goal should be building the right plan, not simply moving your money into whatever product that person happens to sell.

Kyla and Fabian Complete Their First Assignment Deal

Kyla shares a big win during the live show.

She and Fabian recently completed their first wholesale assignment.

The deal came through a lead-generation system they originally built to find properties for their own fix-and-flip business.

Normally they would have purchased the property, renovated it, and sold it.

Instead, they recognized a different opportunity.

They assigned the contract to another investor for:

$10,000.

No renovation.

No construction risk.

No holding costs.

No resale risk.

Just fast cash.

Wayne explains that this is exactly what happens when investors understand multiple strategies.

As Barry McGuire says:

"If you understand the strategies, you recognize the opportunities."

Pivoting vs Giving Up

Wayne also talks about why he generally dislikes the word "pivot."

Too often, people use "pivot" to describe quitting when something gets difficult.

They start moving toward one goal.

Hit resistance.

Then change direction.

Hit resistance again.

Change direction again.

Eventually they never reach any destination.

That is different from recognizing a genuinely better path.

Kyla and Fabian were not abandoning their business.

They recognized that assigning the contract produced a faster, easier return with less risk.

That is not quitting.

That is making a better business decision.

Garage Door Replacement Costs

A live viewer asks about the rough cost of replacing a garage door.

Wayne estimates approximately:

Single garage door supplied and installed:

$2,000–$2,700 plus applicable tax

Insulated double garage door supplied and installed:

Approximately $2,700–$3,500 plus applicable tax

Labour-only costs may vary significantly by contractor and location.

These are rough estimates and should be confirmed locally.

Would Wayne Invest in Ontario?

Another listener asks:

What do you think about Ontario real estate? Would you invest there?

Wayne's short answer:

He has researched it.

But he does not personally want to operate a rental-property business there.

The biggest issue is not necessarily the individual property.

It is the regulatory environment.

One of Wayne's core investment fundamentals is investing in a jurisdiction that supports the operation of the business.

If the landlord and tenant laws create too much operational risk, that can be enough for Wayne to move on.

Real Estate Is a Business

Wayne explains the distinction again:

He is not simply buying an asset and hoping it goes up in value.

He is operating a rental business inside that asset.

That means the laws governing the business matter.

If the province limits:

• Rent increases
• Lease termination
• Enforcement
• Non-payment remedies
• Control over the asset

Then that becomes a major part of the investment risk.

Ontario Real Estate Is in an "Ice Age"

Wayne describes much of Ontario's real estate market as being in an "ice age" right now.

That does not mean every market in Ontario is identical.

It means affordability has become severely disconnected from property values in many areas.

After the pandemic, very low borrowing costs and pent-up demand caused prices to accelerate rapidly.

Prices then moved beyond what many households could realistically afford.

Now the market needs time to rebalance.

Wayne believes the long-term opportunity may return, but affordability, borrowing costs and income all need to move back into a healthier relationship.

Garden Suites Explained

Another listener asks:

How do garden suites work?

A garden suite is an additional residential unit built on the same property as an existing house.

It can be:

• Ground-level
• Above a garage
• A garage suite
• A duplex-style garden suite
• Multiple units, where municipal rules allow

The exact rules depend on the municipality.

Edmonton's Garden Suite Opportunity

Wayne explains that Edmonton currently offers a very unusual opportunity because recent zoning changes allow multiple garden-suite units on certain lots.

This allows investors to do something that is not currently possible in the same way in most Canadian cities.

Instead of simply building one small backyard suite, investors may be able to create:

• Duplex garden suites
• Multiple ground-level suites
• Multi-unit garage suites
• Four-plex garden suites

Wayne and his team recently completed their first four-plex garden-suite project.

Why Wayne Built Edmonton Garden Suites

Wayne explains that he began developing this strategy when he saw traditional investment opportunities becoming harder to find.

He spent approximately two years working through:

• Design
• Zoning
• Permits
• Construction
• Builder selection
• Cost control
• Financing
• Appraisal strategy
• Rental projections

The result became Edmonton Garden Suites.

Four-Plex Garden Suites

Wayne says the multi-unit model is where the investment economics become substantially more attractive.

Rather than building one unit in the backyard, multiple units create much more rental income.

Wayne says certain projects may be able to create approximately:

$250,000 in equity upon completion

with some projects potentially creating even more.

He also discusses potential cash flow of more than:

$1,500 per month

when the right property, development model and financing are used.

These results are project-specific and depend heavily on acquisition cost, construction cost, financing, appraisal, rents and execution.

Edmonton Garden Suites Is a Limited Window

Wayne believes this opportunity exists because of current City of Edmonton zoning rules.

Those rules can change.

If the city changes the rules in the future, the strategy may no longer be available in its current form.

That is why Wayne sees the current period as a window of opportunity.

For more information:

www.edmontongardensuites.com

Should Rental Properties Be Owned in a Corporation?

A listener asks:

How many rental properties should you own before creating a corporation?

Wayne's answer:

Zero.

For passive rental properties, Wayne generally prefers personal ownership or joint ventures using personal ownership where possible.

His view is that corporate ownership often creates less favourable tax treatment for passive rental income.

He says corporate ownership can become relevant when an investor can no longer qualify personally or when the structure is required for another reason.

Before making any ownership decision, investors should speak with a qualified accountant and lawyer about their specific situation.

Variable or Fixed Rates?

A listener asks whether they should move out of variable-rate mortgages.

Wayne explains that he personally remains in variable mortgages.

He does not present that as a recommendation for everyone.

The correct financing decision depends on:

• Risk tolerance
• Cash flow
• Portfolio structure
• Time horizon
• Future purchases
• Mortgage terms
• Personal financial situation

Tomorrow's Morning Show will feature investor-focused mortgage broker Keaton Kirkwood to discuss rising fixed rates and how investors can prepare their portfolios.

What About Saskatchewan?

Wayne says he likes Saskatchewan.

He believes Regina and Saskatoon can offer strong real estate and rental fundamentals.

But if he compared Saskatchewan with Alberta today, he would still choose Alberta.

His reasoning is simple:

If two markets are relatively close in quality, Wayne prefers investing in the market that currently produces the strongest overall result.

He will continue investing there until that changes.

Then he will move to the next market.

Tomorrow: Rising Interest Rates

Tomorrow's Morning Show will feature:

Keaton Kirkwood of Kirkwood & Brennan Mortgage Group

The conversation will focus on rising fixed mortgage rates and what real estate investors can do to:

• Protect cash flow
• Prepare for renewals
• Structure financing
• Continue buying
• Avoid letting higher borrowing costs derail the long-term plan

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, financing, market selection, joint ventures, wholesaling, property management, garden suites and building a profitable Canadian real estate portfolio.

www.reimasters.ca

Edmonton Garden Suites

Learn more about Wayne's multi-unit Edmonton garden suite strategy:

www.edmontongardensuites.com

The 5% Rule™

Learn Wayne Hillier's rental-property cash-flow framework.

Search The 5% Rule by Wayne Hillier on Amazon.

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Upcoming Event

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

The Best Real Estate Investing Advice From REIcon 2026

REIcon 2026 is officially over.

After a packed weekend of presentations, panels, live coaching, deal analysis and conversations with investors from across Canada, Wayne and Gabby are back on the Canadian Real Estate Investing Morning Show sharing some of the best advice they gave from the stage.

In today's episode, they recap several of the biggest lessons from the weekend, including a creative way to negotiate inspection repairs, the three real estate opportunities Wayne believes are strongest in Edmonton right now, why residential real estate should not automatically be considered inferior to multifamily, and why buying the property is only the beginning.

One of the biggest messages from the weekend:

You don't make all your money when you buy the property. How you manage that property afterward determines what you actually keep.

Don't Leave an Event Without What You Came For

Wayne's final advice before leaving REIcon on Saturday was simple.

If you paid to attend an educational event and still have a question preventing you from taking action, do not leave without getting it answered.

Find the person who knows.

Ask the expert.

Talk to the lender.

Talk to the lawyer.

Talk to the investor.

Talk to the contractor.

The entire point of attending an event like REIcon is to leave with more clarity than you arrived with.

Monday morning eventually comes.

Motivation fades.

What matters is whether you actually learned something that allows you to take the next step.

A Creative Way to Negotiate Inspection Repairs

One of Gabby's favourite conversations happened Friday night.

An investor had a property under contract.

The numbers worked.

He liked the property.

Then the home inspection revealed several repairs.

The seller did not want to reduce the price or complete the work.

The investor was considering walking away because every additional dollar he personally invested into repairs would reduce his return on investment.

Gabby suggested a different approach.

Instead of asking the seller to lower the purchase price:

Increase it.

Then require the seller to complete the repairs before closing.

Why?

Because the increased purchase price may allow more of the total acquisition cost to be incorporated into the mortgage financing, while the seller uses the additional proceeds to complete the required work.

The seller can potentially walk away with roughly the same net amount.

The buyer avoids funding the entire repair bill separately out of pocket.

And the deal may stay together.

It will not work in every transaction and needs to make sense with the lender, appraisal and contract structure, but it demonstrates an important investing principle:

Price is only one part of a negotiation.

Stop Obsessing Only Over Purchase Price

Investors often become fixated on negotiating the lowest possible purchase price.

But the better question is:

How do I structure the entire transaction so the investment works?

Price.

Repairs.

Closing date.

Financing.

Conditions.

Credits.

Terms.

Possession.

All of these can matter.

Sometimes paying slightly more for the property can actually create a better investment if the overall structure reduces the amount of additional cash you need to contribute.

The Three Edmonton Opportunities Wayne Highlighted at REIcon

During Saturday morning's live Morning Show, Wayne shared the three opportunities he currently believes are among the strongest in Edmonton:

1. Legal suited houses
2. Edmonton townhouses
3. Multi-unit garden suites

Each opportunity serves a different investor.

Different capital.

Different experience.

Different risk tolerance.

Different return expectations.

There is no single asset class that is automatically superior to everything else.

#1: Legal Suited Houses

If somebody forced Wayne to choose a straightforward Edmonton rental property for an investor with limited experience, he would choose a legal suited house.

Why?

They are relatively simple.

They have diversified rental income.

They serve a broad tenant base.

They tend to be resilient.

And Wayne believes they are difficult to completely mess up if they are purchased properly.

The trade-off?

They may not produce the highest returns.

Wayne describes them more as a safe and dependable strategy than the highest-return strategy available.

For someone wanting a relatively straightforward long-term rental property, that can be exactly what they need.

#2: Edmonton Townhouses

Edmonton townhouses remain one of Wayne's favourite opportunities.

He has been buying them for years.

His students are buying them.

And he believes the opportunity still exists today.

A major advantage is accessibility.

A typical Edmonton townhouse may sell for approximately $200,000 to $220,000.

At 20% down, that means an investor may need approximately:

$40,000 to $44,000

for the down payment.

Compare that with a suited house requiring closer to $100,000 or a development requiring hundreds of thousands of dollars.

That lower entry point makes townhouses accessible to far more investors.

Why Wayne Likes Townhouses So Much

Wayne says the returns he has achieved on carefully selected Edmonton townhouses have been exceptional when combining:

• Appreciation
• Mortgage paydown
• Cash flow

Some properties were purchased for approximately $160,000 and are now worth well over $200,000.

On certain investments, Wayne says the combined return relative to the original invested capital has exceeded 100%.

That does NOT mean every Edmonton townhouse will produce those results.

The complex matters.

The neighbourhood matters.

The condo corporation matters.

The purchase price matters.

Due diligence matters.

The property still needs to be selected properly.

But Wayne believes investors continue to overlook the strategy because it does not sound as impressive as owning a large apartment building.

Residential vs Multifamily

One of Wayne's messages throughout the weekend was:

Residential and multifamily are apples and oranges.

Multifamily is not automatically the "next level."

Residential is not automatically beginner investing.

Some multifamily deals will outperform residential deals.

Some residential deals will dramatically outperform multifamily deals.

The correct comparison is the actual investment.

Capital required.

Cash flow.

Risk.

Return.

Financing.

Management.

Exit options.

Potential appreciation.

Wayne believes investors sometimes chase multifamily because it feels bigger rather than because the actual numbers are better.

#3: Edmonton Garden Suites

The third major opportunity is multi-unit garden suites.

This strategy requires considerably more capital and sophistication.

Wayne and Gabby are currently developing multi-unit garden suites behind existing Edmonton houses.

Instead of demolishing the original house, they retain it and build additional residential units on the property.

The finished property can then potentially operate more like a multifamily asset.

The strategy combines:

An existing house.

Newly created units.

New rental income.

Value creation through development.

And potentially an income-based appraisal upon completion.

Creating Hundreds of Thousands in Equity

Wayne says their current garden-suite developments are projected to create substantial equity upon completion.

Depending on the individual property, he discusses potential value creation in the range of approximately:

$250,000 to $400,000

The strategy may also allow them to refinance the completed property and recover a significant portion, and potentially all, of the original invested capital.

The remaining property then continues operating as a cash-flowing asset.

This is effectively a development version of the BRRRR strategy.

But Wayne emphasizes that this is considerably more complicated than simply buying a townhouse or suited house.

Execution matters.

Financing matters.

Development costs matter.

Property selection matters.

Appraisal methodology matters.

And investors need enough capital to complete the project.

The Window of Opportunity Is Closing

Wayne has been discussing Edmonton's investment window for several years.

His view remains that Edmonton prices are still relatively affordable compared with the rents certain properties can produce.

But that relationship will not last forever.

Prices have been increasing.

Certain rents are now softening.

And eventually the rent-to-price ratio will become less attractive.

Wayne believes Edmonton is already partway through that window.

The goal is not to panic-buy.

The goal is to recognize opportunities while the fundamentals still work.

Buying the Property Is Only the Beginning

One of Gabby's strongest messages from the weekend came during their property and asset management presentation.

Investors spend enormous amounts of time learning:

How to find a deal.

How to analyze it.

How to negotiate it.

How to finance it.

How to close it.

But ownership can last 20 years.

The acquisition may take a few weeks.

The management lasts decades.

Gabby's point:

Once you take possession, how you manage the property ultimately determines your profits.

A fantastic deal can become a terrible investment through poor management.

You Can Self-Manage a Large Portfolio

Wayne and Gabby also challenged the idea that investors automatically need a professional property manager as their portfolio grows.

They have self-managed their rental portfolio remotely since they started.

That does not mean personally doing everything.

It means building systems.

Communication systems.

Maintenance systems.

Inspection systems.

Rent collection systems.

Renewal systems.

Contractor systems.

Bookkeeping systems.

Documentation systems.

Then, as the portfolio grows, specific tasks can be delegated.

Wayne and Gabby now use an assistant for portions of the communication and administration.

But the assistant operates inside systems they created.

That distinction matters.

Trust the System

Wayne describes seeing rental-property emails during the REIcon weekend and barely registering them.

Years ago, those issues might have consumed his attention.

Today, he trusts the system.

That allows him to focus on:

Acquisitions.

Developments.

New businesses.

Joint ventures.

Raising capital.

Family.

And everything else requiring his attention.

That is the real purpose of systems.

Not simply organization.

Freedom.

Remote Property Management Course – 50% Off This Week

Following the response to their REIcon presentation, Gabby is offering a temporary 50% discount on the REI Masters Remote Property Management Course.

The course teaches the systems Wayne and Gabby use to manage their rental portfolio remotely.

The eight-module course covers how to create a property-management operation that does not require the owner to personally attend every showing, inspection, maintenance call or tenant issue.

Visit:

www.reimasters.ca

Use discount code:

50OFF

for 50% off during the promotional period discussed on today's show.

The Main Lesson

Buying a great property matters.

But buying the property is only the beginning.

A great acquisition with terrible management can still become a terrible investment.

The goal is to:

Buy correctly.

Finance correctly.

Manage correctly.

Build systems.

And hold great properties for the long term.

That is how real estate becomes a wealth-building business instead of a series of transactions.

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, financing, market selection, due diligence, joint ventures, property management, BRRRR strategies and building a profitable Canadian real estate portfolio.

www.reimasters.ca

The 5% Rule™

Learn Wayne Hillier's framework for evaluating rental-property cash flow.

Search The 5% Rule by Wayne Hillier on Amazon.

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Upcoming Event

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

How Are We Finding So Many Great Real Estate Deals?

If great real estate deals really exist, why isn't everybody buying them?

That was the question that came into the Canadian Real Estate Investing Morning Show today.

A listener wanted to know how Wayne keeps finding strong deals, how REI Masters students keep buying cash-flowing properties, and why those opportunities seem almost invisible to everyone else.

Wayne and Gabby's answer is simple:

You don't know what you don't know.

The properties are not hidden.

The MLS is not secretly showing Wayne different listings.

The opportunities are sitting in front of everybody.

The difference is understanding what you are actually looking at.

Today's episode also covers the growing infill controversy in Edmonton, a suspicious fire in Parkview following an anti-infill protest, the current Edmonton rental market, and several recent deals being completed by REI Masters students.

"Something Seems Off"

The listener's email asked:

How can Wayne and his students keep finding all these great deals if everyone else can see the same properties?

Wouldn't somebody else buy them first?

Wayne's response is that most people are looking at real estate one-dimensionally.

Experienced investors are looking at it from multiple angles.

Two people can look at the exact same property.

One sees:

An old townhouse.

A condo fee.

A property that has been sitting on the market.

Something that needs work.

Another investor sees:

Strong tenant demand.

Cash flow.

A below-market acquisition.

A refinance opportunity.

Long-term appreciation potential.

A BRRRR.

A wholesale assignment.

Or simply a property that fits a very specific investment framework.

The property did not change.

The investor's knowledge changed.

Buying the Property Is the Easy Part

Wayne explains that even when he tells people exactly what type of property to buy, that does not guarantee success.

He could say:

Buy three-bedroom townhouses in Edmonton.

He could narrow it down further.

West end.

South side.

Certain neighbourhoods.

Certain price ranges.

But there are still plenty of ways to make a mistake.

Which complex?

What condo corporation?

What reserve fund?

What future repairs are coming?

What tenant profile?

What rent?

What condition?

What purchase price?

What financing?

What cash flow?

What due diligence?

And once you buy it, how will you manage it for the next 20 years?

The purchase is only one piece of the puzzle.

Why Education Changes What You See

Wayne compares real estate knowledge to assembling a puzzle.

The Morning Show gives investors pieces every weekday morning.

Over time, listeners begin understanding how those pieces fit together.

But somebody who hears only one episode may hear:

"Buy an Edmonton townhouse."

And think that is the entire strategy.

It is not.

The strategy is the complete framework surrounding the acquisition.

Gabby summarizes the difference:

Education.

Someone who understands an industry will recognize opportunities that somebody without that education will completely miss.

That principle applies far beyond real estate.

The Deals Are Right in Front of You

Wayne explains how his own acquisition process often works.

Every month or two, he decides he is ready to buy.

He messages his Edmonton realtor, Calvin Hexter, and tells him:

I'm in buy mode.

Then Wayne reviews the available inventory.

He may look at seven properties.

Write three offers.

Get two accepted.

And buy them.

There is no secret inventory.

There is no hidden database.

The opportunities are already available.

The key is recognizing which properties meet the framework and knowing how to evaluate them quickly enough to act.

Wayne Has Already Locked Up Three Properties

Wayne says he has already locked up three properties recently and still wants to purchase two more.

The reason he has not bought the additional properties yet is not a lack of money or financing.

He simply has not seen anything good enough.

That is another important lesson.

Being ready to buy does not mean forcing a deal.

You wait until the property fits.

Then you move.

Opportunities Constantly Change

A great real estate strategy today may not be a great strategy three years from now.

Markets change.

Prices change.

Rents change.

Interest rates change.

Inventory changes.

Investor competition changes.

That means opportunities appear and disappear.

Wayne says there are currently two particularly strong opportunities in Edmonton.

Eventually, everybody may recognize them.

Prices will increase.

Competition will increase.

Returns will compress.

And the opportunity will disappear.

Then investors need to recognize the next one.

The Cost of Waiting for Proof

One of Wayne's biggest warnings is waiting too long for proof that a strategy works.

People often want to see everybody else doing it before they feel comfortable.

But once everybody else is doing it, that creates the very competition that removes the opportunity.

Wayne says his best deals often happen because he recognizes the opportunity before the broader market does.

His students may then enter shortly afterward.

Eventually everybody catches on.

By that time, prices may already be 15%, 20% or 25% higher.

Education allows investors to recognize opportunities earlier.

REI Masters Student Deals

Wayne and Gabby also highlight several deals currently happening inside the REI Masters community.

Dennis

Dennis recently took possession of another rental property generating approximately:

$580 per month in cash flow.

Wayne says Dennis and Andrea have acquired several properties during their first year and have added substantial monthly cash flow to their portfolio.

Kyla and Fabian

Kyla and Fabian found an off-market property through their We Buy Houses marketing.

Instead of completing the flip themselves, they found another buyer and are assigning the opportunity for approximately:

$10,000.

Kane

Kane recently locked up his first wholesale deal.

Wayne describes it as an excellent potential Edmonton BRRRR opportunity.

The property is a three-bedroom townhouse requiring approximately $15,000 to $20,000 in renovations.

The potential strategy:

Buy.

Renovate.

Refinance.

Recover the invested capital.

Keep the property.

Cash flow approximately $300 per month afterward.

Wayne says the property scored approximately 9% on the cash-flow test.

Jas and Rupinder

Jas and Rupinder recently acquired another property for approximately $30,000 to $40,000 below market value.

They plan to complete renovations and may potentially use a BRRRR strategy.

Anya

Anya recently acquired a commercial property worth approximately:

$2 million.

Amanda

Amanda has secured her first joint venture partner.

Her challenge now is finding the right deal for the available capital.

Additional Students

Wayne also highlights several other students who have been acquiring properties, raising joint venture capital, building rent-to-own businesses and expanding their portfolios.

The common thread is not luck.

It is education followed by action.

Edmonton's Infill Debate Gets Hotter

The episode also covers a very different Edmonton real estate story.

Residents in Edmonton's Parkview neighbourhood recently held a protest against increasing infill development.

Residents have raised concerns about:

• Density
• Parking
• Traffic
• Garbage collection
• Snow removal
• Construction disruption
• Neighbourhood character
• Property values

Shortly after the protest, a vacant house slated for redevelopment caught fire.

The property reportedly had approval for a four-dwelling row house with four secondary suites.

Fire officials considered the blaze suspicious, and Edmonton police began investigating.

Wayne makes clear that nobody knows whether the fire had any connection to the protest.

But the timing intensified an already heated debate around infill development in mature Edmonton neighbourhoods.

Another Infill Fire Had a Different Cause

Wayne also discusses another recent Edmonton infill-related fire.

That fire was reportedly connected to a lithium-ion battery inside an electric scooter.

Wayne says Edmonton fire officials reported numerous lithium-ion battery-related fires and millions of dollars in associated damage.

The two fires were unrelated, but both highlight risks surrounding increasingly dense residential development.

Wayne's Complicated View on Infill

Wayne openly admits he has mixed feelings about Edmonton's infill boom.

He participates in infill development.

He believes new housing supply is necessary.

He also understands why existing homeowners may be frustrated.

Wayne believes Edmonton went too far in certain areas and added too much competing rental supply too quickly.

That additional supply has created significant pressure on some segments of Edmonton's rental market.

But not every property type is being affected equally.

Edmonton Rents Are Down — But Not for Every Property

Wayne says Edmonton rents overall have softened year over year.

However, rents within his own portfolio have continued increasing.

Why?

Because he deliberately purchased properties that serve a different tenant profile than much of the new rental supply being built.

This is another example of why understanding property type matters.

Citywide averages do not tell you everything.

You need to understand exactly who your tenant is, what alternatives they have and what type of property they actually want.

The Main Lesson

If you look at Wayne's deals or the deals being completed by REI Masters students and think:

"Something seems off. Why don't I see these?"

The better question may be:

"What am I not seeing yet?"

The listings are there.

The opportunities are there.

But opportunities only become obvious when you understand:

The market.

The numbers.

The property type.

The tenant.

The risks.

The financing.

The exit.

The operations.

And how all of those pieces work together.

Education changes what you see.

Action determines what you do with it.

REIcon – The Summit Series

REIcon starts tonight in Edmonton.

September 11–13, 2026

Wayne and Gabby will be there Friday and Saturday.

The Canadian Real Estate Investing Morning Show will broadcast live on stage Saturday morning at 8:00 AM.

Wayne will also be teaching due diligence, while Wayne and Gabby will present together on property and asset management.

Get tickets at:

www.reiconference.ca

Use discount code:

REIMASTERS15

for 15% off.

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, financing, market selection, joint ventures, wholesaling, BRRRR strategies, due diligence, property management and building a profitable Canadian real estate portfolio.

www.reimasters.ca

The 5% Rule™

Learn Wayne Hillier's cash-flow framework for evaluating rental properties.

Search The 5% Rule by Wayne Hillier on Amazon.

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions:

[email protected]

Upcoming Events

REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026

www.reiconference.ca

Discount code: REIMASTERS15

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

What You Need To Know Before Investing in a New City

How do you know whether a city is actually a good place to invest in real estate?

A market can have cheap houses.

It can have great-looking cash flow.

Population might be increasing.

Property values might be rising.

And it can still be a terrible place to build a long-term rental portfolio.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby answer a question from listener Carmen:

What do you look for when deciding whether to invest in a new city?

Wayne breaks down five of the major factors he looks at before putting money into a new real estate market.

The goal is not simply finding the city with the highest appreciation or cheapest properties.

The goal is finding a market where you can buy a profitable rental business, operate it successfully, and have confidence that it can remain sustainable for the next 20 years.

The Framework Comes Before the City

Wayne explains that he does not start by falling in love with a city and then trying to make the numbers work.

He starts with his investment framework.

Then he asks:

Does this market fit?

If it does not fit the fundamentals, he moves on.

Gabby describes it as trying to fit the correct peg into the correct hole.

You do not start sanding the corners off because you really want the deal to work.

The standards stay the same.

The market either meets them or it does not.

1. Landlord and Tenant Laws

One of Wayne's first considerations is the legal environment where the rental business will operate.

A city can have:

Great cash flow.

Strong population growth.

Excellent rents.

Good appreciation potential.

Low vacancy.

And attractive properties.

But if the landlord and tenant laws prevent you from operating the rental business effectively, that can be enough for Wayne to walk away.

Wayne uses Ontario as an example.

Issues such as restrictions surrounding lease termination, rent increases and lengthy dispute processes can materially change the risk profile of owning rental property.

Gabby makes an important point:

Managing the property properly is how you ultimately make money.

You can make money when you buy.

You can have great appreciation.

You can have positive cash flow.

But poor operations can destroy all of it.

Wayne wants to know that both landlord and tenant are held accountable to the agreement they signed and that there is a reasonably efficient process when somebody does not fulfil their obligations.

Before researching individual cities, understand the landlord and tenant laws of the province.

2. Cash Flow Potential

Cash flow is one of the most important filters Wayne uses.

If the type of property he wants to purchase cannot generate sufficient cash flow in that market, he will not buy there.

Why?

Because Wayne does not view rental real estate as simply purchasing an asset and hoping its value increases.

He is buying an asset and operating a business from it.

A business consistently spending more every month than it generates is not attractive simply because the building might eventually appreciate.

Cash flow is also Wayne's primary risk mitigator.

The greater the cash-flow cushion, the more room the investment has to absorb things outside the investor's control:

• Higher interest rates
• Vacancy
• Lower rents
• Increasing expenses
• Job losses
• Economic changes
• Unexpected repairs

Wayne uses the 5% Rule™ Cash Flow Test as a minimum standard for evaluating this.

Understand the Specific Neighbourhood

Do not simply search:

"What is the average rent in this city?"

That is not enough.

Different neighbourhoods attract different tenants.

Different property types command different rents.

One side of a city may perform very differently from another.

Wayne and Gabby recommend researching the actual properties competing with the one you intend to purchase.

Wayne gives an example from recent market-rent research.

There were only a handful of comparable rentals available, and his property was clearly superior to the competition.

Instead of simply copying the average asking rent, he decided the property could justify charging more.

Market rent is not just a statistic.

It is the price your property can command relative to the alternatives available to tenants.

3. Market Size

Small towns can sometimes produce incredible-looking cash flow.

Properties can be inexpensive.

There may be almost no rental competition.

Rents may appear exceptionally strong relative to purchase prices.

That can be tempting.

But Wayne sees a major problem:

Sustainability.

Everything can look fantastic while the town is booming.

Then one employer closes.

One construction project ends.

One mine shuts down.

One mill disappears.

One economic event hits the dominant industry.

Suddenly the rental demand that supported your investment disappears.

Wayne generally prefers major cities with populations of approximately 500,000 or more.

That is not a universal rule for every investor.

It is his preference because larger markets generally provide more diversification and resilience.

What About Smaller Cities Around Major Centres?

Gabby adds an important exception.

Smaller communities immediately surrounding a major metropolitan area can function as extensions of the larger city.

Examples around Edmonton include:

• St. Albert
• Sherwood Park
• Spruce Grove
• Beaumont

Residents may live there while still working, shopping and participating economically in the larger metropolitan area.

Sometimes those communities offer lower purchase prices while maintaining similar rental demand.

The important distinction is whether the smaller community has a genuinely diversified economic connection to the larger centre or exists primarily because of one local employer.

4. Industries and Employment

Once Wayne identifies a potential market, he wants to understand:

Why do people live there?

Where are the jobs?

How much do those jobs pay?

Are those jobs sustainable?

Are more jobs being created?

Is the city dependent on one employer or industry?

A market dominated by a single mill, mine, manufacturing plant or temporary infrastructure project creates more risk.

If that employer disappears, the rental market can change extremely quickly.

Wayne prefers markets with diversified employment and industries capable of producing good-paying, long-term jobs.

Temporary Growth Can Fool Investors

Imagine a small community suddenly gets thousands of workers because a major highway, mine, pipeline or infrastructure project is being built.

Rental demand explodes.

Vacancy disappears.

Rents increase.

Investors see the numbers and rush in.

But what happens when construction finishes?

If those workers leave and there is no permanent economic reason for people to remain, the rental demand can disappear just as quickly as it arrived.

Wayne wants investments that can survive for 20 years.

Not just the next construction cycle.

5. Population Growth and Migration

Population growth is another major factor.

More people moving into a city creates additional demand for housing.

Initially, many newcomers rent.

Eventually, some become homeowners.

That can create pressure on both:

Rental demand

and

Real estate values.

Wayne wants to study the history of population growth and net migration.

But historical numbers are not enough.

He also looks forward.

What projects are being announced?

What employers are expanding?

What new industries are arriving?

What infrastructure is being built?

What will cause people to move there over the next five, ten or twenty years?

Follow the Jobs

Wayne gives a theoretical example of a major new project creating thousands of construction jobs followed by thousands of permanent jobs.

During construction, many workers may become renters.

That puts pressure on rental supply.

Later, some of those workers may take permanent jobs and become homebuyers.

If you own the right type of property, you can potentially benefit from both phases.

First, strong rental demand.

Later, increased homebuyer demand for the same type of property.

That is exactly the kind of long-term market dynamic Wayne looks for.

Real Estate Prices Going Up Is Not Enough

A city can have rapidly increasing real estate prices and still be a poor rental market.

Gabby discusses communities where outside buyers drove prices higher while local residents increasingly struggled to afford either rents or homes.

That creates a disconnect.

Wayne repeatedly comes back to the same principle:

You are not simply buying a box and hoping the box becomes more valuable.

You are operating a business from the property.

The market needs to support that business.

The Five Filters

When Wayne begins evaluating a new real estate market, five of the major things he considers are:

1. Landlord and tenant laws
2. Cash flow potential
3. Market size
4. Industries and employment
5. Population growth and migration

These five factors are only the beginning.

Once a market passes those filters, deeper due diligence begins.

What neighbourhoods?

What asset classes?

What tenant profile?

What vacancy?

What property values?

What rents?

What long-term development is happening?

The purpose of the first analysis is not to prove that you should invest somewhere.

It is to determine whether the market deserves further investigation.

A Rare BRRRR Opportunity in Edmonton

Wayne and Gabby also discuss an opportunity brought to the previous night's REI Masters coaching session.

One student operating a wholesaling business found an Edmonton property that Wayne believes could potentially make an excellent BRRRR.

The renovation appears relatively simple, potentially around $10,000 to $20,000 in cosmetic improvements.

The strategy would be:

Buy the property.

Complete the renovation.

Increase the value.

Refinance.

Recover the invested capital.

Then hold the property as a cash-flowing rental.

Based on the analysis discussed during the coaching session, Wayne says the property performed exceptionally well on the cash-flow test.

He describes opportunities like this as increasingly rare and says Edmonton has not offered many comparable BRRRR opportunities in several years.

Weekly REI Masters Coaching

Wayne and Gabby also share several wins and challenges discussed during their weekly REI Masters coaching session.

Students are currently working through:

• Condo document due diligence
• Off-market acquisitions
• Wholesale assignments
• Joint venture partnerships
• Finding deals for money partners
• BRRRR opportunities
• Financing
• Legal issues
• Market selection

The coaching sessions are designed around helping students solve the actual roadblocks preventing them from reaching their next objective.

REIcon – The Summit Series

REIcon begins tomorrow in Edmonton.

September 11–13, 2026

Wayne and Gabby will be there Friday and Saturday.

On Saturday morning at 8:00 AM, the Canadian Real Estate Investing Morning Show will be recorded live on stage.

Wayne and Gabby are also presenting during Saturday's sessions.

Get tickets at:

www.reiconference.ca

Use discount code:

REIMASTERS15

for 15% off.

REI Masters Mentorship

Work directly with Wayne and Gabby on market selection, acquisitions, financing, deal analysis, property management, joint ventures, wholesaling and building a profitable Canadian real estate portfolio.

www.reimasters.ca

The 5% Rule™

Learn Wayne Hillier's cash-flow framework for evaluating Canadian rental properties.

Search The 5% Rule by Wayne Hillier on Amazon.

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions for the show:

[email protected]

Upcoming Events

REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026

www.reiconference.ca

Discount code: REIMASTERS15

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Is Calgary Still a Good Place to Invest in Real Estate?

Calgary real estate investors have had an incredible run.

Properties that once sold for under $300,000 are now worth significantly more. Rents increased. Investors who bought several years ago benefited from cash flow, mortgage paydown and substantial appreciation.

But that creates a different question in 2026:

Does Calgary still make sense for someone buying today?

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby answer a listener who already owns Calgary rental properties and wants to know whether they should buy more, continue holding what they own, or sell.

Wayne's answer comes down to one important relationship:

The rent-to-price ratio.

Property values can continue increasing, but if rents are no longer high enough to support the cost of owning the property, the investment stops functioning as a profitable rental business.

Don't Fall in Love With a Market

Wayne starts with an important reminder.

Being from Calgary is not a reason to invest in Calgary.

Loving Calgary is not a reason to invest in Calgary.

Having made money there previously is not automatically a reason to buy there again.

Real estate investing decisions should be based on the numbers and fundamentals available today.

Markets change.

Strategies need to change with them.

The Difference Between Holding and Buying Today

This is one of the most important distinctions in the episode.

Someone who bought a Calgary property five years ago may be in an excellent position today.

They may have:

• A much smaller original mortgage
• Years of mortgage principal paydown
• Increased rents
• A large amount of equity
• Positive cash flow
• A substantial reserve fund

That does not mean someone purchasing the exact same property today will get the same result.

The existing owner and the new buyer are working with completely different numbers.

The Calgary Investor Who Bought at $280,000

Wayne walks through a simplified example.

Several years ago, an investor might have purchased a Calgary house for approximately:

$280,000

At 20% down, that investor would have contributed approximately:

$56,000

Their mortgage would have been around:

$224,000

At the time, similar properties could potentially rent for approximately $1,700 to $1,900 per month depending on the property and neighbourhood.

Interest rates were also dramatically lower.

The property could cash flow.

Then rents increased.

And property values increased significantly.

That investor may now be sitting on an asset worth well over $500,000 while still carrying a relatively small mortgage.

That is an excellent position.

Now Buy the Same Property in 2026

The problem is the next investor is not buying it for $280,000.

They may be buying it for:

$550,000

At 20% down:

$110,000

Mortgage:

$440,000

Now add today's mortgage rate, property taxes, insurance, maintenance, vacancy and other operating expenses.

The same rental income that produces great cash flow for the person who bought five years ago may produce negative cash flow for the buyer purchasing today.

That is the problem.

The Rent-to-Price Ratio Is Out of Balance

Wayne describes the rent-to-price ratio as the relationship between:

What the property costs

and

What the market will pay to rent it.

Calgary property prices increased extremely quickly.

Rents increased too.

But eventually prices outpaced rents.

And rents cannot simply keep increasing indefinitely because tenants still need to be able to afford them.

Once purchase prices increase faster than rental income, cash flow begins disappearing.

That is where Wayne believes Calgary is today for many residential rental properties.

Appreciation Does Not Fix Bad Cash Flow

Wayne believes Calgary property values can continue to increase over the long term.

Residential real estate generally trends upward over long holding periods.

But it does not move upward in a straight line.

Interest rates change.

Oil prices change.

Inflation changes.

Employment changes.

Government policy changes.

Immigration changes.

Economic conditions change.

Investors cannot reliably predict every short-term movement.

That is why Wayne does not want to purchase a negative-cash-flow property simply because he believes it may appreciate.

The business still needs to work.

The $550,000 Example

Wayne runs another simple example.

Purchase price:

$550,000

20% down:

$110,000

Mortgage:

$440,000

At approximately 4% over 30 years, the mortgage payment alone is around $2,100 per month.

Then add approximately:

• $300+ per month in property taxes
• $150 or more in insurance
• Repairs
• Maintenance
• Vacancy
• Other expenses

If the market rent is approximately $2,200 to $2,300, the numbers do not work.

You are negative before even accounting for several real operating expenses.

That is not the type of rental business Wayne wants to buy.

Don't Follow the Headlines

This is where investors can get confused.

They see headlines saying:

Calgary prices are increasing.

Calgary is appreciating.

Calgary is growing.

Calgary remains desirable.

Those things may all be true.

But the important question for a rental-property investor is:

Can I buy this property today and operate it profitably at today's price, today's rent and today's financing costs?

If the answer is no, rising property values do not automatically make it a good investment.

Wayne Is Still Holding His Calgary Properties

Wayne makes an important distinction between buying more and selling what he already owns.

He is not currently looking to buy more Calgary residential rental properties.

But he is also not rushing to sell the Calgary properties he already owns.

One example from his portfolio was purchased for approximately:

$350,000

Today, Wayne estimates that property is worth around:

$575,000

That represents roughly 65% appreciation over approximately five years.

Even more interestingly, Wayne estimates the property increased from around $530,000 to $575,000 in the last year alone.

That is approximately an 8.5% increase.

The property still cash flows because Wayne's mortgage is based on the original purchase price, not today's value.

Why Wayne Isn't Refinancing All That Equity

That property now contains a significant amount of equity.

So why not refinance it and pull the money out?

Because increasing the mortgage could destroy the cash flow.

Wayne's existing mortgage started at approximately $280,000 and has been paid down over time.

Refinancing against today's $575,000 value would dramatically increase the debt and potentially eliminate the profitability of the rental business.

So Wayne is comfortable allowing the equity to sit there.

The property cash flows.

It continues paying down debt.

It has a healthy reserve.

And it may continue appreciating.

That is enough.

Calgary Was an Incredible Opportunity

Wayne is not saying Calgary was a bad investment.

Quite the opposite.

For investors who purchased the right properties before prices accelerated, Calgary created exceptional returns.

Some properties appreciated 50%, 60% or more over several years.

At the same time:

Rents increased.

Mortgages were paid down.

Cash flow accumulated.

That combination produced tremendous returns.

The problem is that once everybody recognizes the opportunity, capital rushes in.

Prices rise.

Eventually the original opportunity disappears.

The Opportunity Moves

Wayne explains this as a pattern.

A market has a strong rent-to-price ratio.

Investors recognize it.

Capital enters.

Homebuyers enter.

Prices increase.

Eventually the rent-to-price ratio gets squeezed.

Investors then start looking for the next market where rents still support the purchase prices.

Wayne believes this is part of what happened as attention shifted from Calgary toward Edmonton.

Edmonton then experienced substantial appreciation as more capital entered that market.

Eventually another market may become the next opportunity.

The investor's job is to recognize it before everybody else does.

Wayne's Answer: Hold Calgary, But Be Careful Buying More

For the listener who already owns successful Calgary rentals, Wayne's approach would generally be:

Keep the profitable properties.

Continue collecting cash flow.

Continue paying down the mortgages.

Let the equity grow.

Be cautious about refinancing if it destroys the cash flow.

And wait for the right time to eventually sell.

But for someone looking to purchase a typical Calgary residential rental today, Wayne believes it is difficult to find properties that meet the investment fundamentals he teaches.

There may still be specific opportunities.

But they are much harder to find.

The Main Lesson

Do not ask:

"Are Calgary prices going up?"

Ask:

"Does this rental property make sense at today's price?"

Understand:

• Purchase price
• Market rent
• Financing
• Property taxes
• Insurance
• Repairs
• Maintenance
• Vacancy
• Cash flow

Then determine whether the property meets your investment criteria.

The goal is not to predict which city will increase the most next year.

The goal is to buy a rental business capable of surviving for the next 20 years.

Coming Tomorrow

A listener asked another important question during today's live show:

What do you look for when deciding whether to invest in a new city?

Wayne and Gabby plan to tackle that question on tomorrow's Morning Show.

REIcon – The Summit Series

REIcon takes place in Edmonton this weekend:

September 11–13, 2026

Wayne and Gabby will be there Friday and Saturday.

The Canadian Real Estate Investing Morning Show will broadcast live on stage Saturday morning.

Wayne will also be teaching due diligence and pre-purchase analysis.

Get your tickets at:

www.reiconference.ca

Use discount code:

REIMASTERS15

for 15% off.

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, market selection, financing, deal analysis, joint ventures, property management and building a profitable Canadian real estate portfolio.

www.reimasters.ca

The 5% Rule™

Learn Wayne Hillier's framework for evaluating rental-property cash flow and determining whether a property produces sufficient return relative to your investment.

Search The 5% Rule by Wayne Hillier on Amazon.

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions for the show:

[email protected]

Upcoming Events

REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026

www.reiconference.ca

Discount code: REIMASTERS15

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

Fall Rental Property Maintenance Checklist: What Landlords Should Do Before Winter

Winter problems are expensive.

A furnace that fails during the first cold snap.

A frozen exterior water line.

Clogged gutters sending spring melt toward the foundation.

Too much humidity creating condensation, ice and eventually mold.

These are predictable problems, which means landlords should be dealing with them before they become emergencies.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby walk through their fall rental-property maintenance checklist and explain the systems they use to prepare their portfolio for winter.

The goal is simple:

Be proactive instead of reactive.

A relatively inexpensive preventative repair in September can save you from a much larger emergency repair in January.

Why Every Landlord Needs a Seasonal Maintenance System

When you own your own home, seasonal maintenance can happen naturally.

You notice something in the yard.

You walk past the furnace.

You see leaves accumulating in the gutters.

With multiple rental properties, that does not happen automatically.

The more properties you own, the more important systems and checklists become.

Wayne and Gabby recommend creating a repeatable fall inspection checklist, saving it permanently and putting a recurring reminder into your calendar every year.

You should not have to remember everything.

The system should remind you.

Start With the Furnace

One of the most important fall checks is the furnace.

Do not wait for the first -30°C night to discover that the furnace does not work.

During the fall inspection:

• Turn the furnace on
• Confirm it fires properly
• Change the furnace filter
• Consider servicing it if it has not been checked recently
• Make sure airflow is not being restricted
• Deal with known issues before winter

The worst time to discover a furnace problem is late at night during the first major cold snap when every HVAC company in the city is already dealing with emergency calls.

Preventative maintenance gives you options.

Emergency maintenance usually gives you a bill.

Check the Humidifier

Gabby considers humidity control one of the most important seasonal checks.

If the property has a furnace-mounted humidifier or HRV system, the settings may need to change as outdoor temperatures drop.

Too much indoor humidity during very cold weather can cause condensation and ice around:

• Windows
• Window frames
• Exterior walls
• Corners
• Areas behind furniture
• Other cold surfaces

That ice eventually melts.

Then you have water entering drywall, flooring and framing.

And moisture problems can quickly become mold problems.

Make sure the humidifier is set appropriately for the season and outdoor temperature.

Winterize Exterior Hose Bibs

Exterior water lines are another major concern.

Before freezing temperatures arrive:

• Disconnect exterior hoses
• Locate the interior shutoff
• Shut the water supply off
• Open the exterior hose bib
• Drain the remaining water from the line
• Close everything properly for winter

Water expands when it freezes.

If water remains trapped in the pipe, the line or hose bib can burst.

You may not even discover the damage until spring when somebody turns the water back on.

Wayne and Gabby have purchased properties where exterior hose bibs did not survive the previous winter.

A simple preventative step can save hundreds or potentially thousands of dollars.

Clean Gutters and Check Downspouts

Make sure gutters are clear and downspouts direct water away from the house.

In Alberta, snow may accumulate for months before melting rapidly in spring.

When that happens, you want the water moving away from the foundation.

Clogged gutters or poorly positioned downspouts can contribute to:

• Foundation moisture
• Basement leaks
• Water intrusion
• Landscaping damage

Properties surrounded by mature trees may require gutter cleaning every spring and fall.

Wait until most of the leaves have fallen before completing the final fall cleaning.

Check the Roof

While inspecting the exterior, look at the roof.

Check for:

• Missing shingles
• Damaged shingles
• Storm damage
• Fascia issues
• Soffit damage
• Areas where water could penetrate

A small roof problem in September is much easier to repair than a roof problem buried beneath months of snow.

Don't Ignore the Attic

Attic issues can create serious winter problems.

Look for:

• Inadequate insulation
• Poor ventilation
• Disconnected vents
• Bathroom fans exhausting incorrectly
• Signs of moisture
• Previous water staining

Heat escaping into the attic can create condensation and ice.

When that ice melts, the water can end up inside the ceiling, insulation or walls.

That can lead to stains, leaks and mold.

Wayne and Gabby emphasize another lesson here:

If your home inspector identifies an attic issue when you buy the property, do not simply file the inspection report away and forget about it.

Fix the important items.

Test Smoke and Carbon Monoxide Detectors

Every seasonal inspection should include life-safety equipment.

Test every smoke alarm and carbon monoxide detector.

Check:

• Operation
• Batteries where applicable
• Expiry dates
• Proper placement

These devices are not decorative.

They exist to protect the people living in your property.

Check Windows and Doors

Look closely at exterior windows and doors.

Check:

• Caulking
• Sealant
• Weather stripping
• Visible gaps
• Signs of water intrusion
• Areas where daylight is visible around doors

If you can see daylight around a door, cold air can get through too.

Wayne and Gabby have become increasingly focused on exterior sealing after dealing with water-intrusion issues in their portfolio.

Water will find surprisingly small openings.

Seal them before weather makes the problem worse.

Check the Rest of the Property While You're There

If you are already inspecting the property, use the opportunity to perform a broader maintenance review.

Consider checking:

• Hot water tank
• Appliance filters
• Plumbing
• Exterior drainage
• Interior moisture
• Property condition
• Previously identified maintenance items

Treat the rental property the way you would treat your own home.

The goal is to leave knowing the property is prepared to operate safely through winter.

Document Everything

Do not simply walk through and rely on memory.

Take photos.

Record what was inspected.

Document repairs required.

Keep the inspection record.

Then compare it against the next seasonal inspection.

If something does not need immediate attention but should be reviewed again in spring, document it and schedule the follow-up.

Proactive Beats Reactive

Wayne summarizes the philosophy behind the entire episode:

Good property management is not about fixing things when they break. It is about identifying predictable problems before they become emergencies.

A $150 preventative repair in September can easily prevent a $2,000 emergency repair in January.

The exact number is not the point.

The principle is.

Preventative maintenance is almost always easier and cheaper than emergency maintenance.

Build the System Once

For investors with multiple properties, the solution is not becoming better at remembering everything.

Build a system.

Create a fall checklist.

Create a spring checklist.

Put recurring reminders into your calendar.

Delegate inspections where appropriate.

Document the results.

Schedule repairs automatically.

The simpler the system is, the more likely it will actually be followed.

That frees up your mental bandwidth for higher-value activities:

Finding deals.

Building relationships.

Raising capital.

Growing your portfolio.

And spending time on the things outside real estate that actually matter to you.

REIcon – The Summit Series

REIcon takes place in Edmonton this weekend:

September 11–13, 2026

Wayne and Gabby will be there Friday and Saturday.

On Saturday morning, the Canadian Real Estate Investing Morning Show will be recorded live on stage.

Later Saturday, Wayne will participate in a due diligence and pre-purchase session with Patrick Francey.

Wayne and Gabby will also present together on asset management and property management.

Get tickets at:

www.reiconference.ca

Use discount code:

REIMASTERS15

for 15% off.

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, financing, deal analysis, property management, joint ventures and building a profitable Canadian real estate portfolio.

www.reimasters.ca

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions for the show:

[email protected]

Upcoming Events

REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026

www.reiconference.ca

Discount code: REIMASTERS15

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

September 2026 Edmonton Real Estate Market Update

What is actually happening in the Edmonton real estate market heading into fall 2026?

Inventory has climbed dramatically compared with the last couple of years. Months of inventory has increased. August was slower. Buyers have significantly more choice.

But that does not mean the opportunities are gone.

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby are joined by Edmonton investor-focused realtor Calvin Hexter of Calvin Realty for a September 2026 Edmonton real estate market update.

They break down the latest inventory numbers, months of inventory, days on market, pricing, rental vacancy pressures and what investors should expect as Edmonton moves into the fall market.

They also discuss why September may create an important buying window, why investors need to look beyond citywide averages, and why some of the best deals Wayne and his students have seen in years are showing up right now.

Edmonton Inventory Has Changed Dramatically

One of the biggest changes in Edmonton is inventory.

Calvin says available inventory is now around 8,050 properties.

For comparison, Edmonton had roughly 3,000 to 4,000 available properties during much tighter periods in the previous couple of years.

That means buyers now have considerably more selection.

For sellers, that creates competition.

For buyers, that creates opportunity.

Months of Inventory Climbs to 3.88

Edmonton moved from roughly 3.3 months of inventory to approximately 3.88 months.

That is a meaningful shift.

For comparison, during some of the tighter periods in 2024, Edmonton was around 1.7 to 1.8 months of inventory.

The market is now much more balanced.

That does not mean every property is easy to negotiate.

Real estate is still hyper-local.

Different neighbourhoods, property types and price points can behave very differently.

But overall, buyers have more leverage than they did during Edmonton's extremely tight market.

August Was a Sleepier Month

Calvin describes August as a slower month, which is not unusual.

People are travelling.

Families are preparing for school.

Sellers sometimes allow listings to expire or temporarily remove properties from the market.

Calvin expects activity to start increasing again around the second week of September.

His prediction is that the market begins waking up around September 10.

That combination can create an interesting opportunity for investors:

More inventory.

Some sellers becoming frustrated.

Listings that have been sitting.

And buyers beginning to return.

Prices Were Mostly Slightly Lower

According to Calvin, most major property categories declined approximately 1% from July into August.

Townhouses were the exception, increasing by roughly 2%.

Properties that are selling are averaging around 40 days on market.

But citywide averages only tell part of the story.

A townhouse in one neighbourhood can behave completely differently from an infill property or multifamily asset somewhere else.

Not Every Property Has the Same Vacancy Rate

The same principle applies to rental vacancy.

A citywide vacancy number does not tell you exactly what is happening with your property.

Calvin gives the example of newer west-end infill projects.

While the broader Edmonton vacancy rate may be somewhere around 4% to 5%, certain concentrated property types could be experiencing vacancy closer to 10%.

That is why investors need to drill down.

What neighbourhood?

What property type?

What tenant profile?

What rent?

How much competing inventory?

Wayne recommends talking directly with other landlords who own similar properties.

Ask them:

How long did it take to rent?

How many inquiries did you receive?

What rent did you achieve?

That real-world information can sometimes tell you more than a citywide statistic.

Wayne and Gabby Are Seeing Rental Pressure Too

Gabby also provides an update on September rent collection.

On the morning of September 1, only about 45% of their expected rent had been received.

Normally, Gabby likes to see closer to 60% to 65% collected before the first because many tenants pay early.

Ultimately, everything was collected.

But there were a couple of tenants who needed an extra day or some clarification around credits.

Wayne and Gabby believe affordability pressure is becoming more noticeable.

Groceries are expensive.

Fuel is expensive.

Households are feeling stretched.

At the same time, Edmonton has more rental supply than it did previously.

That means landlords may occasionally need to be slightly more flexible while still maintaining strong systems and boundaries.

More Rental Supply Does Not Mean Stop Buying

This is an important distinction.

Wayne is actively purchasing properties.

REI Masters students are actively purchasing properties.

And Wayne says some of the deals they are finding right now are among the best they have seen in approximately a decade.

The rental market may require stronger management.

But the acquisition market is creating opportunities.

The answer is not necessarily to stop buying.

The answer is to buy properly and manage properly.

Strong cash flow gives you room to handle vacancies, slower leasing periods and occasional tenant payment issues without putting the investment at risk.

Why Toronto and Vancouver Investors Changed Edmonton

The conversation also touches on the wave of Ontario and British Columbia investors who entered Edmonton aggressively during the previous market cycle.

Calvin says there was more resentment in 2024 when Edmonton buyers were regularly being beaten by aggressive out-of-province offers.

Wayne shares a story about a Mill Woods property he wanted to flip.

He submitted an aggressive offer over asking.

Another investor from Toronto beat him by approximately $45,000 over asking with no conditions and without seeing the property.

Wayne watched the deal afterward.

The buyer eventually lost money.

That is the difference between buying because you believe prices will keep increasing and buying based on fundamentals.

Wayne and Gabby were also able to benefit indirectly from rising Edmonton values by refinancing properties they already owned and redeploying that capital later.

Edmonton Investors Have More Choice Again

The key takeaway from Calvin's September update is that Edmonton is no longer experiencing the same extreme shortage buyers faced during the tightest parts of the market.

Inventory is higher.

Months of inventory is higher.

Sellers have more competition.

Buyers can be more selective.

For disciplined investors, that can create excellent buying opportunities.

But investors still need to understand the specific neighbourhood, property type and tenant market they are buying into.

REIcon – The Summit Series

Wayne, Gabby and Calvin also discuss the upcoming REIcon Summit Series in Edmonton.

September 11–13, 2026.

The event is structured more like an investing workshop than a traditional conference.

The goal is to walk investors through the process of completing a real estate deal from beginning to end.

Topics include:

• Finding opportunities
• Determining what makes a good deal
• Negotiating
• Due diligence
• Financing
• Joint ventures
• Seller financing
• Residential investing
• Multifamily investing
• Raising capital
• Building the right professional team

Wayne and Gabby will be presenting during the event.

The Canadian Real Estate Investing Morning Show will broadcast live on stage on Saturday, September 12.

Wayne will also be teaching due diligence alongside experienced Canadian real estate professionals, including his Edmonton real estate lawyer, Richard Bell.

REIcon takes place September 11–13 in Edmonton.

Use discount code:

REIMASTERS15

for 15% off tickets.

www.reiconference.ca

About Calvin Hexter

Calvin Hexter is an Edmonton investor-focused realtor and the founder of Calvin Realty.

Calvin and his team work with real estate investors purchasing and selling residential, multifamily and investment properties throughout Edmonton.

www.calvinrealty.ca

REI Masters Mentorship

Work directly with Wayne and Gabby on acquisitions, financing, deal analysis, property management, joint ventures and building a profitable Canadian real estate portfolio.

www.reimasters.ca

Watch the Morning Show

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

Follow Wayne Hillier – Real Estate Investing Coach on YouTube.

Questions for the show:

[email protected]

Upcoming Events

REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026

www.reiconference.ca

Discount code: REIMASTERS15

REI Masters Annual Retreat Edmonton, Alberta October 17–18, 2026

www.reimasters.ca

Sponsors

Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca

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

Kirkwood & Brennan Mortgage Group Investor-focused mortgage planning for Canadian real estate investors. www.kbmortgages.ca [email protected]

The Basement Suite Cashflows - But Is It Actually Legal?

A basement suite can make a rental property look fantastic on paper.

Two rents.

Better cash flow.

Stronger returns.

But there is one question investors sometimes forget to ask before removing conditions:

Is the basement suite actually legal?

In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby explain how investors can verify whether a secondary suite is permitted, why an illegal or non-conforming suite can create serious financial risk, and what could happen if the city, lender or insurance company eventually starts asking questions.

They also discuss the Bank of Canada's latest interest-rate announcement, why investors shouldn't build deals assuming rates are going to fall, and why sufficient cash flow is what protects a rental portfolio when borrowing costs change.

What You'll Learn

• Why the Bank of Canada holding rates doesn't mean investors should assume rates are headed lower
• How variable-rate mortgages and HELOCs are affected differently than fixed-rate mortgages
• Why Wayne believes deals should work at today's interest rates
• How the 5% Rule™ Cash Flow Test creates a cushion against higher borrowing costs
• Why reserve funds make property repairs and renovations much easier
• Why a basement suite can make a mediocre property look great on a spreadsheet
• How to determine whether a basement suite is actually legal
• Why pulling a permit does not necessarily mean the suite received final approval
• Why investors should confirm that the existing suite matches what was originally approved
• Why you should never automatically treat rent from an illegal suite as guaranteed income
• How an illegal suite can affect property value
• Why neighbours and former tenants can create unexpected problems
• What could happen if the municipality orders a secondary suite to stop operating
• Potential tenant relocation costs when a suite can no longer legally be occupied
• Why insurance becomes particularly important with non-conforming suites
• How Edmonton, Calgary, Winnipeg, Toronto and Vancouver differ when researching secondary suites
• Why Wayne and Gabby recommend buying or building legal suites whenever possible

Bank of Canada Holds at 2.25%

The Bank of Canada held its overnight rate at 2.25% in its September announcement.

Wayne points out that the bigger story for investors is not simply that the rate stayed the same.

It is the possibility that the environment could change.

His message to investors is straightforward:

Do not buy a rental property assuming interest rates are going down.

Make the property work at today's numbers.

If rates eventually fall, great.

But your investment should not require that to happen.

Variable vs. Fixed Mortgages

Wayne also explains an important distinction.

Changes to the Bank of Canada's overnight rate directly influence prime-based borrowing products such as:

• Variable-rate mortgages
• Adjustable-rate mortgages
• Home equity lines of credit

A fixed-rate mortgage does not immediately change simply because the Bank of Canada changes its overnight rate.

For investors with variable borrowing, however, rate increases can mean either higher interest costs or higher monthly payments depending on the mortgage structure.

That makes cash flow especially important.

Could Your Property Survive Higher Rates?

Imagine your mortgage payment increases by $50 per month.

Probably manageable.

What if it rises by $500?

Now the question becomes much more serious.

Over a 20-year investment period, investors should expect interest rates to move.

The property needs enough cash-flow cushion to survive those changes.

Wayne points back to what happened when investors purchased properties during extremely low-rate environments and built their deals around financing conditions that did not last.

When rates increased, some properties and projects could no longer support themselves.

That is exactly the type of situation the 5% Rule™ Cash Flow Test is designed to help investors avoid.

Why Cash Flow Creates Options

Wayne and Gabby share another example from their own portfolio.

One of their properties recently became vacant after several years.

The property now needs repairs and improvements.

But they are not scrambling to find the money.

Why?

The property's cash flow has been accumulating inside its reserve fund.

That reserve can now pay for the work.

No emergency credit card.

No unexpected cash call to the joint venture partner.

No panic.

The rental business generated the money needed to maintain the rental business.

That is how Wayne and Gabby believe a long-term portfolio should be built.

Is That Basement Suite Actually Legal?

The second major topic today begins with a situation Wayne recently heard about.

An investor had been renting a basement suite when the municipality contacted them and wanted to inspect it.

The problem?

The suite was not properly permitted.

Now the investor is facing questions about whether the tenant can continue living there and what happens to the economics of the property if that basement rent disappears.

This is why Wayne believes investors need to verify secondary-suite status before purchasing the property.

The Numbers Can Look Amazing

Non-conforming suites can be tempting.

Imagine two similar properties.

One has a fully legal secondary suite.

The other has a basement suite that looks almost identical but was never properly permitted.

The non-conforming property may sell for less while producing almost the same advertised rental income.

On a spreadsheet, that can look like an incredible deal.

But that additional rent comes with risk.

If something happens and you can no longer rent the basement separately, does the property still work?

The Question Wayne Would Ask

If you are considering purchasing a property with a non-conforming basement suite, Wayne suggests running a worst-case scenario:

Does this property still cash flow if I cannot rent the basement separately?

Assume the suite gets shut down.

Assume you must rent the entire house as one unit.

Does that rent still cover the property's expenses?

Does it still pass the 5% Rule?

If the answer is no, you need to understand exactly how much risk you are accepting.

Wayne and Gabby's preference remains much simpler:

Buy or build legal suites.

Don't Overpay for an Illegal Suite

Wayne gives a simple example.

Imagine similar bungalows in a neighbourhood are worth:

$400,000

A comparable property with a properly permitted legal suite might be worth:

$500,000

Now imagine another $400,000 bungalow has an unpermitted basement suite.

An investor sees the additional rental income and pays:

$450,000

They think they received a bargain because it is cheaper than the legal suited property.

But that unpermitted suite does not necessarily create the same market value as a fully legal one.

You may have simply paid $50,000 too much for a $400,000 house.

How to Check Whether a Basement Suite Is Legal

Before buying a suited property, investigate it.

1. Check the Zoning

Determine whether secondary suites are permitted under the property's zoning and municipal rules.

2. Check the Permits

Find out whether the correct permits were actually issued for the secondary suite.

Do not simply take the seller's word for it.

3. Confirm Final Inspections

A permit being opened does not necessarily mean the work received final approval.

Ask whether all required inspections were completed and the permit was properly closed.

4. Compare the Current Suite to What Was Approved

A previous owner may have obtained approval and then changed the property afterward.

Make sure today's layout and use still correspond with what was permitted.

Some Cities Make This Easier

Depending on where you are investing, your municipality may provide online tools that can help with the initial research.

Wayne and Gabby discuss several examples.

Edmonton has tools investors can use to research secondary-suite permits.

Calgary has a secondary-suite registry.

Winnipeg allows investors to search issued permits by address.

Other cities, including Toronto and Vancouver, have permit and property-research tools, but investors may still need to contact the appropriate municipal department to confirm the actual status of a secondary suite.

The easiest approach is usually:

Search the city's online tools first.

Then, if there is any uncertainty, contact the municipality directly and ask:

"Does this address have a permitted secondary suite, and were all required final inspections completed?"

What Causes the City to Investigate?

Municipalities generally are not driving around neighbourhoods searching for illegal basement suites.

Problems often begin because somebody complains.

Two obvious possibilities are:

Tenants.

And:

Neighbours.

A tenant who becomes unhappy with the landlord may discover that the suite is not legal.

A former tenant may complain.

A neighbour who is frustrated with parking, noise or repeated rental problems may report the property.

Everything can operate smoothly for years.

Until somebody makes the phone call.

What Happens to the Tenant?

This is one of the risks investors sometimes overlook.

You may have a valid residential tenancy agreement with someone living in the basement.

If the municipality determines they can no longer legally occupy that space, you now have two problems.

You lost the rental income.

And your tenant may need somewhere else to live.

Depending on the circumstances and applicable law, the landlord could potentially face costs resulting from being unable to provide the premises promised under the tenancy agreement.

That could include temporary accommodation, moving, storage or other expenses.

This is an area where investors should obtain proper legal advice for their specific situation.

Don't Forget the Insurance Company

Another major concern is insurance.

Imagine you buy a property with an illegal secondary suite.

You obtain landlord insurance.

You collect rent.

Everything appears fine.

Then there is a major claim.

A fire.

Serious water damage.

Liability involving an occupant.

The insurance company investigates and discovers the property was being used differently than represented or that an unpermitted secondary suite was being occupied.

That is not the time you want to discover that your coverage may be affected.

Wayne recommends being transparent with your insurance professional and making sure the property is properly insured for the way it is actually being used.

The Liability You Don't Want

Wayne also discusses the extreme scenario investors sometimes hear about involving fires in illegal basement suites.

If a landlord knowingly operates an unsafe or prohibited suite and someone is seriously injured or killed, the consequences could go far beyond lost rent.

The circumstances surrounding any legal liability would depend heavily on the facts, but the underlying lesson is simple:

Do not knowingly ignore serious safety or permitting issues.

Saving money by avoiding permits is not worth taking a catastrophic risk.

The Main Lesson

A beautiful basement suite does not automatically mean you have two legal rental units.

And a spreadsheet showing two rents does not mean you can count on receiving both rents forever.

Before buying:

Check the zoning.

Check the permits.

Confirm final inspections.

Verify what was actually approved.

Speak with your insurer.

And run the property numbers assuming that basement rent disappears.

If the entire investment collapses without the non-conforming suite, understand that you are taking a significant risk.

Wayne and Gabby's preferred approach is straightforward:

Buy legal. Build legal.

The additional cost is usually much easier to deal with than discovering years later that the rental income your entire investment depended on was never guaranteed in the first place.

About Your Hosts

Wayne and Gabby Hillier are Canadian real estate investors, entrepreneurs and founders of REI Masters.

Through the Canadian Real Estate Investing Morning Show, they provide practical Canadian real estate investing education, lessons from their own portfolio and free coaching every weekday morning.

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