Real Estate Investing Morning Show ( REI Investment in Canada )

Jaksot

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  Our Tenant Can't Pay Rent on Time. Here's What We're Doing. 01.10.2026 56min

  Our Tenant Can't Pay Rent on Time. Here's What We're Doing. It's October 1st. Rent is due. A few days before rent day, one of Wayne and Gabby's tenants sent an email explaining that she wouldn't have enough money to pay her full October rent. She's temporarily receiving Employment Insurance because of a health-related issue and is waiting for her first payment. She has approximately half of the rent available now and offered to send it immediately, with the remainder coming once her EI payment arrives. So what should a landlord do? Today's episode walks through the situation in real time, including Gabby's decision to work with the tenant, Wayne's concerns about the risks involved, and the systems landlords can use to prevent one late payment from becoming several months of unpaid rent. Late Rent Doesn't Automatically Mean a Bad Tenant This tenant has been late previously, which is an obvious warning sign. But there's another side to the story. In both situations, she communicated with Wayne and Gabby before the rent was due. She explained what was happening, took responsibility for the situation and was willing to accept the consequences associated with paying late. That communication matters. Wayne and Gabby explain that tenant history, communication and character can provide important context when deciding how to respond. The numbers may identify risk, but you're still dealing with people, and sometimes legitimate circumstances prevent otherwise responsible people from meeting an obligation exactly when expected. That doesn't mean landlords should ignore the risk. The Real Danger of Falling Behind The biggest concern isn't necessarily the missing $800 today. It's what happens next. If someone normally lives relatively close to their monthly budget and falls $800 behind, where does that $800 eventually come from? If the tenant uses their next paycheque to catch up on October, they have less money available to prepare for November. Then an unexpected car repair, illness or another expense can push them further behind. One late payment can become a cycle. That's why Gabby doesn't want to allow an open-ended arrangement where the tenant simply pays whenever she's able. Gabby's Decision Based on the tenant's previous communication and history, Gabby decided to accept the proposed arrangement. But she also established an expectation. The tenant needed to confirm that the delayed October payment wouldn't affect November's rent and that she had a plan to prevent this from becoming an ongoing cycle. The tenant confirmed that she did. That doesn't guarantee everything will work out. Gabby is consciously accepting additional risk based on the information and experience she has with this particular tenant. If the promised money doesn't arrive within the timeframe discussed, however, Gabby doesn't intend to continue extending the arrangement indefinitely. Put Everything in Writing One of the most important lessons from today's episode is documentation. Wayne and Gabby conduct their tenant communication through email, which means there's already a written record showing what was proposed, what was agreed to and what expectations were established. If you're making arrangements verbally, Gabby recommends putting the agreement in writing. If the situation eventually requires formal action, documentation becomes extremely important. Compassion Doesn't Mean Ignoring the Business Wayne makes an important distinction during the conversation. This isn't about whether the tenant is a good person. By all accounts, she's a lovely person with a good family, and Wayne and Gabby genuinely want the situation to work out. But a landlord still has contractual obligations, operating expenses and, in some cases, investment partners whose capital must be protected. The decision therefore has to consider the facts rather than being based entirely on emotion. You can care about someone's circumstances while still protecting your business. Why Wayne Doesn't Like Long Payment Plans A viewer suggested spreading the missing $800 over several months. Wayne explains why he generally doesn't favour that approach. Today, the exposure is approximately $800. If the arrangement continues and another full rent payment is missed, that exposure becomes substantially larger. Meanwhile, the landlord could also face vacancy, turnover, cleaning and other expenses if the tenancy eventually ends. The longer the problem continues, the greater the potential loss. Wayne would rather see a clear plan explaining exactly where the missing money is coming from and when it will be paid than continually extend the balance into future months. There Is No "Three Strikes" Rule Wayne and Gabby don't use a fixed three-strikes policy. Their question is simpler: Is there still a credible path to getting the tenancy back on track? A tenant who communicates, provides a clear explanation and follows through may receive flexibility. A tenant who repeatedly fails to follow through without a credible solution may require a much faster response. The decision is based on whether Wayne and Gabby can see a realistic solution, not an arbitrary number of previous late payments. Systems Create Confidence Early in their investing career, a late rent payment could create significant anxiety. Today, Gabby treats it as something that needs to be managed. The difference is having a system. Knowing what happens next, documenting communication, understanding the landlord-tenant process and establishing clear boundaries removes much of the uncertainty. That allows landlords to respond logically instead of emotionally. REI Masters Mentorship Special The current REI Masters offer ends October 3, 2026. Join before the deadline and receive 24 months of mentorship for the price of 12, including access to Wayne and Gabby, coaching, courses, resources, contracts, deal analysis and support. New members also receive entry to the REI Masters Retreat in Edmonton on October 16–17, 2026. www.reimasters.ca Canadian Real Estate Investing Morning Show Hosted by Wayne Hillier and Gabby Hillier. Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta. 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]
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  Edmonton Basement Floods - Tenants Are Complaining About Lingering Smells 30.09.2026 44min

  Your Basement Flooded. The Water Is Gone. But What If It Still Smells? Edmonton's unusually wet summer created serious problems for homeowners, landlords and tenants. Basements flooded, roofs leaked, restoration companies became overwhelmed, and months later some property owners are still trying to put their homes back together. Today's episode starts with a detailed question from an Edmonton real estate investor whose basement suites flooded during the summer. The restoration company removed drywall and flooring, dried the basement and reported that mold or mildew remediation wasn't required. But there's one problem: the tenant still detects an odor they believe smells like mold or mildew. What do you do before rebuilding everything? Wayne and Gabby's Experience With Flooded Properties This wasn't a hypothetical situation for Wayne and Gabby. Their portfolio experienced more than $100,000 in expenses related to this summer's rain and flooding. Some properties had relatively minor problems, while others required substantial work. One property remains vacant while they work through multiple sources of water intrusion and prepare to complete the renovation. Wayne explains why this year reinforced one of their biggest investing principles: cash flow isn't spending money. They keep the cash flow generated by their portfolio in reserves so that unexpected events don't force them to borrow money, sell properties or scramble for capital. The flood was expensive. But because they were prepared for an unexpected event, it didn't threaten the portfolio. Can a Basement Still Smell After Remediation? Wayne and Gabby have noticed lingering smells during some restoration projects. Their experience, however, has been that those smells disappeared once the renovation was fully completed. Wayne compares it to renovating extremely distressed properties. Cigarette smoke, animal odors and other smells can seem impossible to eliminate when you first enter a property. After proper cleaning, new flooring, paint, baseboards and other improvements, the finished property can smell completely different. That doesn't mean a property owner should assume an odor is harmless. The first priority is determining whether the remediation was completed correctly. What Should You Verify With the Restoration Company? Gabby suggests confirming exactly what the remediation company did. Was damaged material removed? Was disinfectant applied? Was proper drying equipment used? Were moisture levels checked before reconstruction was approved? Those are important questions because the goal isn't simply to hide an odor. It's to make sure the property has actually been properly remediated before rebuilding it. Should You Get a Second Opinion? One of the most practical suggestions from today's conversation is to bring in another restoration professional if you aren't confident in the first company's assessment. There are two different perspectives in this particular situation. The tenant believes they smell something. The restoration company says the property is ready. Gabby's suggestion is to introduce an independent third perspective. That could mean the landlord inspecting the property personally or asking another qualified restoration company to assess the work and provide a second opinion before the walls and flooring go back in. Wayne and Gabby agree that cutting corners doesn't make sense. Tearing a finished basement apart again because something was missed would be far more disruptive and expensive. Flooding Is a Landlord Responsibility Wayne also discusses something they saw repeatedly in Edmonton this summer: tenants looking for new rentals because their existing landlords hadn't properly repaired flooded basements. Removing standing water isn't the end of the job. A landlord has a responsibility to properly address water damage and make sure the property is safe before putting everything back together. Wayne emphasizes that the investor who submitted today's question appears to be taking that responsibility seriously. The fact that they're considering an independent environmental assessment demonstrates how seriously they're approaching the problem. The Bigger Investing Lesson: Build Your Reserves Flooding is also a reminder that owning rental property means dealing with expenses you can't predict. Wayne and Gabby's philosophy is to avoid spending the cash flow produced by their properties, particularly during the early years of ownership. Instead, cash flow builds reserves. A portfolio that looks fantastic on paper but doesn't have enough money available to handle a major repair is vulnerable. That's one reason Wayne uses the 5% Rule™ when evaluating properties: (Annual Cash Flow ÷ Down Payment) × 100 5–6% = sufficient 7–9% = strong 10%+ = excellent Cash flow creates the cushion that helps an investor survive the things nobody included in the original spreadsheet. Rapid-Fire: Edmonton's Rental Market The episode finishes with several investor questions. Wayne describes Edmonton's current rental market as highly competitive, with considerable rental supply giving tenants more choices. His expectation is that landlords will need to compete harder for strong tenants and that some rents may soften. At the same time, Wayne says he's currently achieving some of the strongest investment returns of his career. His distinction is important: a difficult rental market doesn't necessarily mean a bad acquisition market. Investors need to buy the right property and become much better at marketing and operating their rentals. How Should Someone Learn Real Estate Investing? Wayne's answer is education before acquisition. Understand how to choose a market, analyze a property and operate the investment before committing your savings or someone else's capital. The Canadian Real Estate Investing Morning Show provides free education and coaching every weekday morning at 7:00 AM Mountain Time. How Do You Buy More Properties When You've Run Out of Money? Wayne's rapid-fire answer: seller financing. Seller financing, including Agreements for Sale, played a major role in Wayne and Gabby's early portfolio growth. Rather than relying entirely on their own down payments or conventional financing, they learned how to structure transactions where the seller provided financing. It's one of Wayne's favourite strategies for experienced investors who understand how to buy and operate rental properties but have exhausted their available capital. REI Masters Mentorship Special Join the REI Masters Mentorship Program by October 3, 2026 and receive 24 months of mentorship for the price of 12. New members also receive entry to the REI Masters Retreat in Edmonton on October 16–17, 2026. www.reimasters.ca Canadian Real Estate Investing Morning Show Hosted by Wayne Hillier and Gabby Hillier. Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta. 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]
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  Canadian Property Taxes: What Real Estate Investors Are Missing 29.09.2026 1t 5min

  Canadian Property Taxes: What Real Estate Investors Are Missing Property taxes might not be the most exciting part of real estate investing, but they can completely change the performance of a rental property. In today's episode of the Canadian Real Estate Investing Morning Show, Wayne and Gabby compare residential property taxes across 20 major Canadian cities and show just how dramatically the numbers can change from one market to another. Using the same $500,000 assessed property value in every market allows for an apples-to-apples comparison. The difference between the lowest and highest cities in the comparison works out to thousands of dollars per year and hundreds of dollars every month. For a real estate investor, that's cash flow. How Property Taxes Actually Work Property taxes aren't structured exactly the same way across Canada. Depending on the province and municipality, your bill can include municipal taxes, provincial education taxes, regional authorities, transit, fire protection, waste collection, school taxes and other local levies. The terminology and assessment systems can also differ between provinces. The important lesson for investors is that looking at a property's purchase price isn't enough. You need to understand the actual assessed value, applicable tax rates and any additional charges specific to that municipality. Why Assessed Value Matters Property taxes are generally calculated using the municipality's assessed value of the property, which isn't necessarily the same as the purchase price or current market value. That distinction becomes especially important when buying a recently renovated property, adding a legal secondary suite, building a garage or completing another improvement that could increase the assessed value. If the municipality hasn't yet incorporated those improvements into the assessment, the existing tax bill may not accurately represent what you'll eventually pay. Vancouver Has the Lowest Rate in the Comparison One of the biggest surprises in today's episode is Vancouver. Using the rates discussed on the show, Vancouver had the lowest combined percentage among the 20 cities compared. On the standardized $500,000 assessed property used throughout the episode, the approximate annual property tax was $1,682, or about $140 per month. Surrey, Kelowna and Victoria were also near the low end of the comparison. Wayne discusses an important reason why percentage rates alone can be misleading. Markets with very high property values can use lower percentage rates while still generating substantial tax revenue because those percentages are being applied against much larger assessed values. Edmonton vs. Calgary Property Taxes The Edmonton-Calgary comparison was particularly interesting. Using the same $500,000 assessed property: Calgary: approximately $3,325/year Edmonton: approximately $5,182/year Difference: approximately $1,857/year That's roughly $155 per month in additional expenses for the Edmonton example. But Wayne stresses that this doesn't automatically make Calgary a better real estate investment. Purchase price, achievable rent, insurance, utilities, cash flow, tenant profile and other operating expenses all have to be considered together. A lower property-tax rate can't compensate for an investment that doesn't otherwise produce the returns you're looking for. Windsor Had the Highest Rate in the Comparison At the other end of the list was Windsor. Using the figures discussed during the episode, a $500,000 assessed property produced an estimated annual property-tax bill of approximately $10,483, or about $873 per month. Compare that with approximately $1,682 annually in Vancouver. That's a difference of roughly $8,801 per year, or about $733 every month. For a rental-property investor, an expense difference of that magnitude can completely change the economics of a deal. Why You Can't Just Compare Mill Rates This episode isn't intended to suggest that investors can simply take a city's headline tax percentage, multiply it by a purchase price and call it done. Assessment systems aren't standardized across Canada. Different jurisdictions can have separate school taxes, regional levies, parcel taxes, waste charges, borough-specific taxes and other fees. Properties can also fall into different classifications. That's why investors need to research the actual property they're considering. Wayne's 5-Step Property Tax Due-Diligence Process When analyzing a new rental property or unfamiliar market: Get the property's actual previous tax bill. Don't rely exclusively on an MLS listing or what the seller tells you. Determine whether the current assessment reflects recent renovations, additions, secondary suites or new construction. Look for separate charges including school taxes, regional levies, parcel taxes, waste fees, stormwater charges and local improvement charges. Verify the property's tax classification and whether your planned use or renovations could change it. Stress test the deal. Don't assume today's property-tax bill will remain unchanged for the next 10 or 20 years. Property Taxes and the 5% Rule This is another reason Wayne emphasizes cash flow. A property that barely works using today's expenses can quickly become a bad investment when property taxes, insurance, maintenance or other costs increase. The 5% Rule™ cash flow test is: (Annual Cash Flow ÷ Down Payment) × 100 5–6% = sufficient 7–9% = strong 10%+ = excellent Cash flow isn't simply money to spend. It's part of the financial buffer that allows an investor to absorb unexpected changes while continuing to hold the property for the long term. Search "The 5% Rule by Wayne Hillier" on Amazon to learn more. REI Masters Mentorship Special Through October 3, 2026, anyone who joins the REI Masters Mentorship Program receives 24 months of mentorship for the price of 12. New members will also be able to attend the upcoming REI Masters Retreat in Edmonton on October 16–17, 2026. Learn more: www.reimasters.ca Canadian Real Estate Investing Morning Show Hosted by Wayne Hillier and Gabby Hillier. Live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta. 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]  
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  Which Canadian Cities Are Most Exposed to U.S. Tariffs? 28.09.2026 55min

  Which Canadian Cities Are Most Exposed to U.S. Tariffs? Tariffs and the ongoing Canada-U.S. trade dispute are creating another layer of uncertainty for Canadian businesses, workers, landlords and real estate investors. But the impact is not going to be equal across the country. In today's episode, Wayne and Gabby look at which Canadian cities have the greatest exposure to U.S. tariffs, why certain local economies are more vulnerable than others, and what investors should be thinking about when choosing markets and building portfolios that can survive economic disruptions. The Rental Market Is Getting More Competitive Before getting into tariffs, Wayne and Gabby share an update from their own rental portfolio. A new tenant moved in early over the weekend, and Gabby explains why they were particularly happy with the tenant profile, including strong credit, good communication, insurance in place, and rent and security deposit paid ahead of time. They also discuss the changing Edmonton rental market. Tenants currently have more options in certain property categories, which means landlords may have to work harder to attract strong applicants. Wayne and Gabby currently have multiple renovation crews moving between properties, but these aren't simply renovations for the sake of improving a property. They're strategic improvements designed to make their rentals more competitive, reduce vacancy and help achieve stronger rents. When supply increases, being "good enough" may not be enough. Presentation, pricing, tenant experience and property condition become increasingly important. What Happens When a Tenant Moves In Before the Lease Starts? A live viewer asked an important landlord question: If you allow a tenant to move in before the official lease date, does that create additional liability? Gabby walks through three things landlords should consider: • Update the lease commencement date and have the appropriate parties acknowledge the change. • Make sure the tenant's insurance begins on the actual possession date. • Collect the required rent and security deposit before possession is provided. Landlords can also decide whether to charge prorated rent for the additional days. In this particular situation, Wayne and Gabby chose not to charge extra because the property was already vacant and the early possession was only a matter of days. Real Estate Investors Need to Build for the Storm One of the biggest themes of today's episode is that economic disruptions are inevitable. Oil crashes, pandemics, rapidly rising interest rates, flooding, trade disputes and other unexpected events continually test real estate investors. Wayne's argument is that investors shouldn't build portfolios that only work when everything goes right. They should buy properties with enough cash flow and financial cushion to withstand periods when things go wrong. He discusses an example of a mentorship student's property generating approximately $670 per month in cash flow. That cushion gives the investor significantly more room to absorb higher expenses, lower rents or other unexpected changes than a property operating close to break-even. Cash flow isn't spending money. It's a risk mitigator. The 5% Rule and Surviving Economic Disruptions Wayne returns to the cash flow framework from his book, The 5% Rule™: A Real Estate Cash Flow Test for Canadian Investors. The formula is: (Annual Cash Flow ÷ Down Payment) × 100 5–6% = sufficient 7–9% = strong 10%+ = excellent Wayne's position is that investors should be buying properties capable of producing meaningful cash flow without depending on appreciation. The greater the cushion, the better positioned the investor is to deal with vacancies, declining rents, higher financing costs and economic shocks. Search "The 5% Rule by Wayne Hillier" on Amazon to learn more. Which Canadian Cities Are Most Exposed to U.S. Tariffs? The episode then examines Canadian cities whose economies have particularly strong exposure to trade with the United States. The industries highlighted include: • Energy in Alberta and New Brunswick • Automotive and manufacturing in Southern Ontario • Steel in Hamilton • Aluminum, forestry and manufacturing in Quebec Saint John, New Brunswick ranked at the top of the tariff exposure index discussed during the show, followed by Calgary. Calgary's position is particularly interesting for Alberta investors. The city's economy has significant exposure to the corporate and export side of Canada's energy industry, and an enormous percentage of its international merchandise exports are destined for the United States. Southern Ontario also features prominently because of its deeply integrated manufacturing and automotive supply chains. Windsor, Kitchener-Cambridge-Waterloo, Brantford and Guelph were among the markets discussed. Hamilton's steel industry creates another form of exposure, while several Quebec communities face risks connected to aluminum, forestry and manufacturing. Lethbridge also appeared among the top 10, although Wayne emphasizes that simply appearing on the list doesn't mean every city faces an equivalent level of exposure. There is a substantial difference between the exposure measurements at the top and bottom of the list. Edmonton vs. Calgary For Wayne, one of the most interesting comparisons is Edmonton versus Calgary. Although both cities are part of an energy-producing province, their economic structures are different. Calgary's economy has greater direct exposure to the corporate and export side of energy. Edmonton still has significant connections to energy, manufacturing and industrial activity, but its economy also includes substantial government, healthcare, education, construction and other sectors. In the ranking discussed during the episode, Edmonton was considerably further down the list at 24th. Wayne explains why economic diversification is one of the fundamentals he considers when choosing a real estate market. No market is immune to economic shocks, but he wants to invest in large markets with strong economies and enough diversification to absorb them. That resilience is one of the reasons Wayne continues to favour Edmonton real estate investing. Don't Wait for Perfect Conditions The takeaway isn't that investors should stop buying real estate because tariffs, interest rates or economic uncertainty exist. There is always another challenge coming. Wayne and Gabby's strategy is to build portfolios that can survive those challenges through strong cash flow, adequate reserves, appropriate tenant profiles, careful market selection and disciplined buying. Waiting for perfect conditions isn't the strategy. Preparing for imperfect conditions is. REI Masters Mentorship Special For a limited time, anyone who joins the REI Masters Mentorship Program before October 3, 2026 receives 24 months of mentorship for the price of 12. You'll also receive entry to the upcoming REI Masters Retreat in Edmonton on October 17–18. Learn more: www.reimasters.ca Canadian Real Estate Investing Morning Show Hosted by Wayne Hillier and Gabby Hillier. Broadcasting live every weekday at 7:00 AM Mountain Time from Edmonton, Alberta. Bring your real estate investing questions and join the conversation live. 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]
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  Bad Rental Applicants? Where Landlords Should Advertise 25.09.2026 56min

  Bad Rental Applicants? Where Landlords Should Advertise + Condo Bylaws & Getting Started Where should landlords actually advertise rental properties? What should real estate investors look for inside condominium bylaws? And what do you do when you know you want to invest in real estate, but you just can't seem to take that first step? Today's Canadian Real Estate Investing Morning Show is a listener Q&A covering three very different problems that ultimately come back to the same thing: Good real estate investing requires good systems, good information and the confidence to actually take action. Where Should You Advertise a Rental Property? A listener wrote in after getting poor-quality rental applicants through Facebook Marketplace and wanted to know whether there is a better place to advertise. Wayne's answer: Know your audience. There is no single rental platform that is automatically best in every Canadian city. Facebook Marketplace may dominate one market. RentFaster may work better somewhere else. Another city may have a completely different platform tenants use. The first question should be: Where do tenants in MY market actually look for rentals? One simple exercise is to pretend you are the tenant. Google rental properties in your city. See which websites appear first. Look at where competing rentals are being advertised. That gives you a much better idea of where your potential tenants are actually searching. Bad Applicants May Not Be a Facebook Problem Gabby makes an important distinction. If Facebook Marketplace is where most tenants in your city search for rentals, getting bad applications does not necessarily mean Facebook is the problem. You want exposure. You want inquiries. You want enough applicants that you have choices. The real issue may be what happens after the inquiry comes in. Why Good Tenants Get Taken Quickly Wayne explains the rental process as a funnel. A good tenant may inquire about dozens of listings. They are comparing: Price Property condition Location Photos Communication Availability Landlord responsiveness If your listing is poorly presented, overpriced or you take six hours to respond, another landlord may already have booked the showing. The best applicants often disappear first. That leaves slower landlords competing over whatever applicants remain. Better Systems Produce Better Tenants Wayne's experience has been that landlords with better systems tend to attract and secure better tenants. That means: Great photos. Correct pricing. Fast responses. A desirable property. Professional communication. Strong screening. Efficient showings. Clear expectations. Wayne recently filled an Edmonton basement suite within days despite expecting the rental to be difficult. The successful applicant ended up being one of the strongest applications Wayne and Gabby had seen recently. The lesson: Where you advertise matters. How you operate matters more. Facebook Marketplace, RentFaster and Other Platforms Wayne does use Facebook. RentFaster is another commonly used option in Alberta. Other platforms may dominate other markets. But Wayne does not believe there is some secret website where only great tenants are waiting. Research where your local tenants actually search and make sure your property appears there. Then outperform competing landlords once the inquiry arrives. What Should Investors Look for in Condo Bylaws? The second listener question comes from Carmen, who asks for a simplified breakdown of what investors should look for inside condominium bylaws. Gabby's approach is straightforward. Ask: What rules could prevent me from operating this rental property the way I intend to? That is the lens investors should use when reviewing the bylaws. Rental Restrictions Some condominium corporations restrict how many units within the complex may be rented. Before purchasing, determine whether: Rentals are allowed There is a rental cap Owner occupancy requirements exist Your specific unit can currently be rented Buying a condo and discovering afterward that you cannot legally operate it as a rental creates an obvious problem. Short-Term Rental Restrictions If your plan involves Airbnb or another short-term rental strategy, check this immediately. More condominium corporations are restricting or prohibiting short-term rentals. Do not assume they are allowed simply because municipal rules permit them. The condo corporation can have its own restrictions. Business Restrictions Another issue is operating businesses from condominium units. This can create insurance and liability complications. It can also violate condominium bylaws. If a tenant begins operating a business and the condo corporation prohibits it, the landlord may suddenly be stuck dealing with a lease that conflicts with the condo rules. Understand the restrictions before leasing the property. Pet Restrictions This is one of the biggest issues Wayne and Gabby look for because they operate pet-friendly rentals. Condo bylaws may restrict: Number of pets Size Weight Breed Type of animal That can dramatically reduce your tenant pool. It can even affect fix-and-flip investors. Wayne shares an example of an investor who received a full-price offer on a renovated condo, only to lose the buyer because the condo bylaws prohibited large dogs. The bylaws can affect more than landlords. They can affect resale value too. Who Is Responsible for What? Do not assume the condominium corporation automatically takes care of everything outside the unit. Responsibilities vary. One corporation may cover every exterior window. Another may cover only certain windows. Doors, fences, windows, balconies and other components may have different maintenance responsibilities depending on the bylaws. Understand exactly what belongs to: The condo corporation versus The individual owner. Then compare those responsibilities against the condition of the property and the condo corporation's financial documents. "I Want to Invest, But I Can't Get Started" The final listener question came from someone who knows they want to invest in real estate but feels stuck. Wayne believes the biggest obstacle is usually: Uncertainty. You do not know exactly what happens next. That creates fear. Then fear creates hesitation. You wonder: How do I finance it? What if I buy the wrong thing? What if nobody rents it? What if something breaks? How does insurance work? How do utilities work? How do I screen tenants? How do I know the numbers are right? Eventually you have so many unanswered questions that doing nothing becomes more comfortable than moving forward. You Will Never Feel 100% Ready Wayne's message is that there is a limit to what education can do before experience has to take over. You can read. Watch videos. Take courses. Listen to podcasts. Study spreadsheets. But eventually you need to actually purchase the first property. Confidence comes from doing. Your first deal may feel intimidating. Then you finish it and realize: "That actually wasn't as bad as I thought." The second one becomes easier. Then the third. Sometimes You Need Someone to Hold Your Hand Some investors can educate themselves and eventually take the leap. Others need somebody experienced beside them. That is one of the biggest roles Wayne sees coaching and mentorship playing. It is not simply more information. It is having someone available when the next uncertainty appears. Instead of sitting on the question for six months, you ask it, get an answer and keep moving. The goal is: Confidence. Clarity. Action. REI Masters Mentorship Special Offer Join the REI Masters Mentorship Program before October 3, 2026 and receive: 24 months of mentorship for the price of 12. That includes: Direct coaching from Wayne and Gabby Weekly live coaching Courses and educational resources Deal analysis Market analysis Property management systems Financing and JV guidance Personalized roadmap Access to the REI Masters community You also receive entry to the upcoming REI Masters annual retreat in Edmonton. Learn more or book a discovery call: www.reimasters.ca The 5% Rule™ Want to understand how much cash flow a rental property should produce? 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] 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]
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  Canada Housing Starts Are Down — But What Does That Actually Mean? 24.09.2026 48min

  Canada Housing Starts Are Down — But What Does That Actually Mean? Housing starts are down. Sounds important. But does that mean Canada is building fewer homes? Does it mean housing prices are about to rise? Does it mean fewer rental properties are coming? Not necessarily. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby dig underneath the housing-start headlines and explain why the number most people quote does not tell investors nearly enough on its own. The problem is simple: When Canada reports "housing starts," that number combines very different types of housing. A detached family home is not the same thing as a townhouse. A townhouse is not the same thing as a 200-unit apartment building. And a condominium tower is definitely not the same thing as a purpose-built rental building. Yet much of that gets bundled together. What Is a Housing Start? A housing start is not a permit. It means construction has actually begun. In practical terms, that generally means work has reached the point where the building's foundation or equivalent construction stage has begun. That distinction matters. A building permit represents an intention to build. A housing start means construction has actually moved forward. But even knowing that still doesn't answer the most important question: What kind of housing is being built? The Headline Number Can Be Misleading Wayne uses recent CMHC data to demonstrate the problem. The national housing-start number includes: Single-detached houses Semi-detached homes Duplexes Townhouses Condominiums Apartment buildings Other multi-unit housing The broad "all other" category can therefore represent completely different markets. Some units may eventually be purchased by homeowners. Others may become rental properties. Some could be high-rise condominiums. Others could be row houses or large apartment buildings. Without knowing the mix, investors should be very careful about making conclusions from the headline number. A Rental Unit Is Not the Same as a Home for Sale This is where Wayne believes the housing conversation becomes especially important. Canada has spent several years encouraging density and rental construction. Programs such as the Housing Accelerator Fund and favourable financing programs have helped make larger multi-unit developments attractive to investors and developers. The result has been a major increase in purpose-built rental development in many cities. But building more rental units does not necessarily solve the same problem as building more homes people can actually purchase. Those are two different markets. Are We Building the Wrong Type of Housing? Wayne raises a question that he believes deserves much more attention. What happens when a perfectly usable single-family house is demolished and replaced with eight or twelve small rental units? You created more rental units. But you also removed one house from the ownership market. If this happens repeatedly across a city, it is possible to simultaneously create: Too much rental supply while creating: Too little traditional ownership housing. Wayne believes this may already be happening in some Canadian markets. He is clear that the available national data does not provide enough detail to prove that conclusion definitively. But based on the information available, it is something investors should be watching closely. Why Local Data Matters More This is why Wayne does not rely heavily on national housing-start headlines when making investment decisions. Canada is not one real estate market. Edmonton is different from Toronto. Calgary is different from Vancouver. A neighbourhood can behave differently from another neighbourhood in the same city. And a single-family rental can behave very differently from a one-bedroom apartment. Investors need to go deeper. Look at what is actually being permitted and built in the municipality where you invest. Are developers building: Apartments? Condos? Townhouses? Duplexes? Single-family houses? Basement suites? Garage suites? That information is far more useful than knowing the national housing-start number. Permits Aren't Starts Either Gabby also points out another distinction. Building permits can help investors understand what developers are planning. But a permit does not guarantee construction. Projects can be: Delayed. Redesigned. Refinanced. Cancelled. A housing start tells you that construction has progressed further. Even then, the investor still needs to understand exactly what is being built. Why Multi-Unit Starts May Be Slowing Wayne believes much of the slowdown is likely coming from multi-unit development rather than detached housing. That would make sense based on what he is hearing within the investor and development community. Developers are dealing with: Softer rents Higher vacancies Higher construction costs Financing challenges Large amounts of competing supply Projects that no longer produce the expected returns Wayne is also seeing and hearing about projects being delayed or cancelled. That may eventually help rental markets rebalance. But there is still a significant amount of previously approved and currently under-construction inventory that has yet to reach tenants. Follow the Money The episode also looks at why investors naturally gravitated toward multi-unit development. Imagine owning a large lot. Building one new house may not generate an attractive enough return. Build two homes and the economics improve. Build eight or twelve rental units with favourable development rules and financing incentives, and suddenly the numbers look much more attractive. Investors responded to the incentives that existed. Builders responded to demand from investors. Municipalities changed zoning to encourage density. The result was predictable. A tremendous amount of multi-unit housing was proposed and built. Does Canada Still Need More Houses? Wayne's answer is: Probably. But he is careful to call that his interpretation rather than a proven conclusion because the available information does not provide enough detail. There may be markets where rental units are becoming oversupplied while traditional family housing remains relatively scarce. That distinction matters enormously to investors. If you simply hear: "Housing starts are down" and make an investment decision from that headline, you are missing most of the story. Understand the Property You Actually Own For Wayne, the lesson comes back to the fundamentals. Don't invest based on a national headline. Understand: Your city Your neighbourhood Your property type Your tenant profile Your competition Your purchase price Your rent Your expenses Your cash flow A national statistic can be useful information. It should not replace local market analysis. REI Masters Mentorship Special Offer Anyone who joins the REI Masters Mentorship Program before October 3, 2026 receives: 24 months of mentorship for the price of 12. The offer includes an additional 12 months of coaching, education and mentorship at no additional cost, plus entry to the upcoming REI Masters annual retreat in Edmonton. Work directly with Wayne and Gabby on: Market analysis Acquisitions Financing Deal analysis Property management Joint ventures Building your personal real estate roadmap Learn more: www.reimasters.ca The 5% Rule™ Want to understand how much cash flow a rental property should produce? 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] 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]
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  A $13 Billion Meta Data Centre Is Coming Near Edmonton. What Does It Mean for Real Estate? 23.09.2026 55min

  A $13 Billion Meta Data Centre Is Coming Near Edmonton. What Does It Mean for Real Estate? A massive new technology investment is putting Alberta back in the national spotlight. Meta is developing its first Canadian data centre in Sturgeon County, just north of Edmonton, with an estimated investment of approximately $13 billion. But for real estate investors, the important question is not simply: "How big is the project?" It is: "What will this actually do to housing, rents, jobs and property values?" On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby look at both sides of the story. Could large-scale data centres create new construction activity, jobs and economic growth around Edmonton? Absolutely. Does that mean investors should immediately start buying houses beside them? Not necessarily. Today's episode also covers another developing story out of Ontario, where investors connected to the Simple Investor property-management model were reportedly told that rental payments were being delayed while the company dealt with market and liquidity challenges. The two stories may seem completely different, but they reinforce the same lesson: Understand what you are investing in and never replace fundamentals with excitement. Ontario Investors Face Delayed Payments Wayne and Gabby begin with reports involving Simple Investor and its affiliated property-management operation. According to the report discussed on the show, some investors who owned properties through the model were told that rental payments were being delayed because of market and liquidity challenges. One investor reportedly owned six properties and had relied on the rental payments to service mortgages. That raises a question Wayne repeatedly comes back to: Where is the rent actually going? If a tenant pays rent to a property-management company, the owner should understand: Where the money is held How management fees are deducted When the remaining rent is transferred Whether funds are segregated Who controls the accounts What happens if the management company experiences financial trouble Wayne's concern is not about making conclusions regarding what occurred in this particular situation without all the facts. It is about investors understanding the structure they are putting their money into. Hands-Off Investing Still Has Risk One of the attractions of these types of investments is that they can appear extremely simple. Buy the unit. Let somebody else manage everything. Collect the payment. But handing control to another company does not eliminate risk. It transfers some of that control to somebody else. Wayne explains why one of the reasons he originally chose real estate was the ability to control more of the investment himself. If something goes wrong with his property, tenant, financing or expenses, he can respond directly. The more layers added between the investor and the asset, the more important due diligence becomes. Then Comes Alberta's Data-Centre Boom The second half of today's episode shifts to a very different story. Meta is building a massive data centre in Sturgeon County, north of Edmonton. The development represents approximately: $13 billion in investment. Alberta is also attracting interest from numerous other data-centre developers. Why Alberta? Several factors make the province attractive: Large amounts of available land Natural gas and electricity infrastructure Energy-industry expertise Cold temperatures that can reduce cooling requirements A business environment actively pursuing major investment For Alberta, this could become a significant new industry. More Than 100 Projects Have Been Proposed There has been enormous interest in building data centres across Alberta. But Wayne stresses an important distinction: Proposed does not mean built. A hundred proposals do not equal a hundred completed projects. Investors need to separate: Announcements from Approvals from Construction from Completed operating facilities. Meta's project is significant because it has moved beyond being simply an idea. What Could This Mean for Edmonton Real Estate? A project of this size can create economic activity. Construction workers need somewhere to live. Contractors need services. Suppliers expand. Companies supporting the project may establish local operations. Infrastructure investment follows. All of those things can support an economy. But Wayne cautions against immediately converting an economic announcement into a real-estate prediction. A $13-billion project does not automatically mean: Rents will explode. Property values will skyrocket. Every nearby neighbourhood becomes a great investment. You still have to analyze the actual property. Don't Invest Based on the Headline Wayne's investment philosophy is straightforward. He does not want to buy a property because he hopes Meta causes it to appreciate. He wants to buy a property that already works. That means analyzing: Purchase price Market rent Expenses Financing Vacancy Tenant demand Cash flow If the property makes money today, future economic growth becomes upside. If the investment only works because you are hoping a massive technology project pushes its value higher, you are speculating. The Business Inside the Building Wayne describes a rental property as two things. There is the asset, the physical property. Then there is the business operating inside it. The investor has much more control over the business. You can control: The property you purchase. The tenant profile you target. The quality of the rental. The neighbourhood. The number of bedrooms. The rent. The expenses. The management. You cannot control whether buyers decide to pay more for the property five years from now. That is why Wayne builds his investment strategy around operating profitability first. Should You Buy Beside a Data Centre? This is where the conversation becomes more complicated. Data centres can create employment and economic activity. But being directly beside one may not necessarily be desirable. Communities in parts of the United States have raised concerns about: Constant cooling-fan noise Electricity demand Water use Construction activity Industrial traffic Visual impact The long-term effect depends heavily on the type of facility and where it is located. In the case of Meta's Sturgeon County development, the site is within Alberta's Industrial Heartland rather than being dropped into the middle of an established Edmonton residential neighbourhood. Still, investors should understand both the positive and negative possibilities before buying nearby. Buyer Perception Matters Gabby raises an important point. Even if somebody cannot prove that living near a data centre is harmful, potential buyers may still decide they do not want to live there. That matters. Real estate values are ultimately influenced by supply and demand. If enough buyers avoid a location because they perceive it negatively, that perception itself can affect demand. Investors therefore need to understand not only the physical impact of a project but how the public is likely to react to it. What About Electricity Costs? Large data centres require enormous amounts of electricity. Capital Power has agreed to initially supply 250 megawatts to Meta's Sturgeon County facility. Wayne discusses the possibility that major power demand could have broader effects on electricity infrastructure and costs. The ultimate impact remains uncertain and will depend on how Alberta expands generation and transmission capacity. For landlords who include utilities in rent, any major change in electricity costs matters because higher operating expenses directly reduce cash flow. Jobs Matter, But What Kind of Jobs? Another important question is what happens after construction is finished. A project of this scale can employ thousands during development. But permanent operations may require significantly fewer employees. That means investors should distinguish between: temporary construction employment and long-term permanent employment. A three-year construction boom can create short-term rental demand. Long-term real estate fundamentals depend much more heavily on lasting employment and population growth. Wayne Is Still Buying Edmonton Wayne's conclusion is not that data centres are good or bad for Edmonton real estate. There is still too much uncertainty for that. What he does know is that he is not buying Edmonton property because Meta is coming. He is buying Edmonton property because he can currently find investments that: Cash flow Produce strong returns Attract good tenants Work without depending on appreciation If the data-centre boom strengthens Edmonton's economy over the next decade, that becomes additional upside. But the investment needs to work without it. REI Masters Mentorship Want direct help building your real estate investment strategy? REI Masters provides education, resources and direct coaching from Wayne and Gabby. www.reimasters.ca A new mentorship announcement is coming on the September 23 Morning Show. The 5% Rule™ Want to understand whether your rental property has enough 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] Sponsors Calvin Realty – Edmonton Investor-Focused Realtor Team www.calvinrealty.ca Finngo Bookkeeping & Tax www.finngo.com/rei Kirkwood & Brennan Mortgage Group www.kbmortgages.ca [email protected]
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  Your Down Payment Is NOT Enough: The Real Cost of Buying a Rental Property 23.09.2026 59min

  Your Down Payment Is NOT Enough: The Real Cost of Buying a Rental Property You saved the 20% down payment. You found the property. You got the mortgage. You're ready to buy. Not quite. On today's Canadian Real Estate Investing Morning Show, Wayne and Gabby break down the costs investors often forget when budgeting for their first rental property. Using a hypothetical $500,000 legal suited house, they show why an investor who thinks they need $100,000 may realistically want closer to $116,000 to $117,000 available before closing. The difference comes from expenses that are not necessarily hidden, but are very easy to forget. The $500,000 Rental Property Example Assume you're buying a $500,000 house with a legal basement suite. At 20% down: Down payment: $100,000 Most new investors stop there. But the down payment is only one part of the cash required. Before buying, Wayne and Gabby say investors should also think about: Appraisal Home inspection Sewer scope Legal fees Title insurance or related closing costs Property tax adjustments Immediate repairs Cleaning Furnace and duct servicing Yard cleanup Reserve funds These seemingly smaller costs can quickly add thousands of dollars to the amount required. Appraisal Mortgage lenders commonly require an appraisal to confirm the property supports the value being financed. Wayne and Gabby suggest budgeting roughly: $300–$500 depending on the lender and property. Sometimes the investor does not even notice the cost because it appears through closing adjustments or is withdrawn separately. But you are still paying for it. Home Inspection Wayne and Gabby strongly recommend having the property professionally inspected. For the suited-house example discussed today, they suggest budgeting approximately: $600 A good inspector evaluates the major systems and components of the property, including: Roof Attic Foundation Plumbing Electrical HVAC Appliances Moisture Smoke detectors Doors Flooring Exterior components The inspection also gives you a roadmap of items that may need attention immediately after possession. Sewer Scope This is one Wayne strongly recommends. For an older residential property, he suggests having the sewer line inspected with a camera. Budget approximately: $250–$300 Why? Because a sewer replacement can be extremely expensive. Wayne and Gabby discuss a previous replacement that cost approximately $15,000 before additional related work. A few hundred dollars spent investigating the line can uncover a potentially very expensive problem before closing. Legal Fees Legal costs are another expense investors sometimes underestimate. Depending on the transaction and legal team, Wayne and Gabby suggest costs may range from roughly: $1,500 to $2,000+ Wayne's approach is not to select a lawyer based solely on price. A straightforward transaction is straightforward until something goes wrong. That is when having the right professional matters. Title Insurance and Closing Adjustments Depending on the property and province, investors may also encounter costs such as title insurance. Property tax adjustments are another common surprise. If the seller has already paid property taxes for a period after your possession date, the seller is credited for that amount at closing. That increases the cash you need to bring to the lawyer. The Property Will Probably Need Something Wayne says almost every property they buy requires immediate work after possession. Not necessarily a major renovation. It could be: Expired smoke detectors. Doors that do not close properly. Loose baseboards. A leaking shower diverter. A thermostat that is not mounted correctly. A furnace that has not been serviced. A damaged closet door. Minor plumbing or electrical issues. Individually, these may seem small. Together, they add up quickly. Wayne and Gabby typically budget: $2,000–$3,000 per property for immediate repairs and maintenance. Don't Defer Everything One mistake investors make is saying: "It's not that bad. I'll deal with it later." But deferred maintenance eventually becomes your problem. Wayne and Gabby prefer to fix smaller issues before placing a new tenant whenever possible. That provides a safer, cleaner and better-maintained property for the tenant while reducing the likelihood of emergency service calls later. Cleaning, Furnaces and Landscaping Other costs investors can easily overlook include: Professional cleaning. Furnace servicing. Duct cleaning. Gutter cleaning. Landscaping. Lawn cleanup. These expenses can add hundreds or even thousands more depending on the condition of the property. When Wayne and Gabby added the potential acquisition-related costs together in today's example, they reached approximately: $6,750 beyond the down payment. And there is still one more major item. The Reserve Fund Wayne considers this one of the most important systems an investor can put in place. Start every rental property with a cash reserve. His recommendation: Three months of rent on day one. If the suited house rents for approximately $3,000 per month total, that means starting with: $9,000 in reserves. Then continue depositing some or all of the property's monthly cash flow into that reserve. The reserve grows. Then when something breaks, you use the property's money to fix it. A washing machine fails? Reserve. Furnace repair? Reserve. Vacancy? Reserve. Lower rents? Reserve. The goal is to operate the rental like a business instead of relying on your personal chequing account whenever something goes wrong. $100,000 Becomes $116,750 In today's example: Purchase price: $500,000 20% down payment: $100,000 Potential additional acquisition and repair costs: approximately $6,750 Starting reserve: $9,000 Total amount to consider budgeting: Approximately $115,750–$116,750, depending on the final costs and repairs. The exact number will vary from property to property. The lesson is what matters: Do not save exactly enough for the down payment and assume you are ready to buy. REI Masters Mentorship Promotion Wayne and Gabby also announced a major REI Masters Mentorship offer. Anyone who joins before October 3, 2026 receives: 24 months of mentorship for the price of 12. The program includes: Direct coaching from Wayne and Gabby Weekly coaching sessions Courses and resources Strategy development Personalized roadmap Deal support Access to the REI Masters community The offer also includes entry to the upcoming REI Masters Retreat. Learn more: www.reimasters.ca The 5% Rule™ Want to understand how much cash flow your rental property should produce? 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] 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]
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  Canada's Construction Boom Is Finally Slowing Down 21.09.2026 46min

  Canada's Construction Boom Is Finally Slowing Down For the last few years, Canada has been building aggressively. More apartments. More condos. More purpose-built rentals. More infill. More density. But new Statistics Canada data suggests that construction intentions are finally beginning to slow. In July 2026, the total value of building permits issued across Canada fell 17.3% to $12.2 billion. Residential permits were also down, with multi-family projects accounting for most of the residential decline. For real estate investors, this matters because new supply has been one of the biggest forces affecting rents, vacancies and property values across the country. Today, Wayne and Gabby break down what the slowdown could mean, particularly for Edmonton and Alberta. Building Permits Are Falling Statistics Canada reported that the total value of building permits across Canada declined sharply in July. Residential permit values fell as well, including a significant decline in multi-family construction intentions. Alberta also experienced a meaningful monthly decline in total permit values. The important distinction: A permit is not a completed building. It represents an intention to build. A project may still be delayed, redesigned, refinanced or abandoned altogether. That means the rental supply already under construction is still coming. But fewer new projects entering the pipeline could eventually help the market rebalance. Edmonton Still Has a Lot of Supply Coming Wayne's concern is not that Edmonton suddenly stopped building. Far from it. There are still a significant number of purpose-built rental projects already under construction or far enough through the development process that they are likely to hit the rental market. Those buildings still need to be completed. Then they need tenants. The question is: How long will it take for Edmonton to absorb all of that new rental supply? Wayne believes it could take several years. Why Developers May Be Pulling Back Wayne discusses several reasons developers may be becoming more cautious. Financing costs have changed. Construction costs have increased. Rents have softened in some segments. Vacancy has increased. And developers now have to consider the large amount of competing inventory already coming onto the market. A project that looked great two years ago may look very different today. That becomes particularly important when a development was financed using construction or bridge financing and the permanent financing available at completion no longer produces the same numbers. Construction Costs Are Still Increasing Wayne and Gabby share a recent example from one of their own townhouse investments. Shortly after purchasing units in the complex, the condominium corporation received an updated roofing quote. The final cost came in approximately $90,000 higher than expected. The condo corporation responded by temporarily increasing condo fees rather than issuing a large special assessment. The lesson was not really about condo fees. It was about construction costs. If replacing shingles on a townhouse complex can suddenly cost substantially more than anticipated, developers working on multi-million-dollar projects are facing the same problem on a much larger scale. Edmonton May Have Overshot A few years ago, Edmonton had the opposite problem. Vacancy was extremely low. Rental supply was tight. Tenants were struggling to find housing. Rents were increasing quickly. Government and developers responded by creating and building more housing. Wayne and Gabby believe the market may now have moved too far in the opposite direction. The supply shortage was addressed. But construction kept coming. That creates a period where landlords may need to compete harder for tenants while the market absorbs the new units. Will Edmonton Rents Keep Falling? Wayne believes rents will continue softening in certain segments of the market. But he does not believe every rental property will be affected equally. The largest pressure may fall on property types facing the most new competition. That includes: Main-floor suites Basement suites Smaller infill units Purpose-built rental units competing for similar tenants There are simply more choices available to renters. Full Houses Could Be Different At the same time, Wayne sees a different opportunity developing in full-house rentals. If tenants search the market and see hundreds of smaller suites but very few full houses with basements, garages and yards, demand can shift toward the scarcer product. That is an important distinction. Saying: "Edmonton rents are falling" is too broad. The better question is: Which rents are falling? Different asset classes can behave completely differently inside the same city. The Supply and Demand Lesson This is ultimately a supply-and-demand story. When rental supply is too low, rents increase. Developers react. Governments react. Construction increases. Eventually supply catches up. Then supply can exceed short-term demand. Vacancy rises. Rents soften. Developers become more cautious. Construction slows. Eventually the market moves toward balance again. The cycle continues. Real estate investors need to understand where they are inside that cycle. Is the Construction Boom Finally Slowing? During today's rapid-fire Q&A, Gabby asks Wayne directly: Is the new construction boom finally slowing down? Wayne's answer: Yes. But the bigger uncertainty is how long the effects will take to work through the market. Hundreds of millions of dollars of projects are already permitted or underway. Some will finish. Some may not. And the impact on rents and vacancies will take time to become clear. How Long Could Edmonton Take to Absorb the Supply? Wayne estimates that Edmonton could take approximately five to six years to fully absorb the current wave of purpose-built rental supply and return to the type of vacancy environment he considers more balanced. That is Wayne's estimate, not an official forecast. The timeline could change significantly depending on: Population growth Migration New construction Project cancellations Interest rates Employment growth Rental demand Why Cash Flow Matters More Than Ever The episode closes with a listener asking how much cash flow a rental property should have. Wayne points back to the 5% Rule™. The reason he focuses so heavily on cash flow is not because he views it as spending money. He views cash flow as protection. If rent falls by $200 but the property was producing $500 per month, the investor still has room. If the property was only producing $100, that same rent decline pushes it negative. Multiply that across a large portfolio and small differences become significant. Cash Flow Is a Risk Mitigator Wayne describes cash flow as the ultimate risk mitigator. It protects investors against: Lower rents Higher vacancy Higher interest rates Unexpected repairs Rising operating expenses Market downturns Investors cannot control all of those variables. But they can control how much margin they build into the property when they buy it. What About Fort McMurray? A listener also asks about Fort McMurray. Wayne says he has heard positive things recently about rental demand in the market. However, he remains cautious because Fort McMurray has historically been a more cyclical, boom-and-bust market. For Wayne, predictability matters. He prefers markets where he feels more confident about long-term tenant demand and the sustainability of the rental business. The 5% Rule™ Want to understand how much cash flow Wayne believes a rental property should have? Search: The 5% Rule by Wayne Hillier on Amazon. Remote Property Management Course Today is the final day to receive 50% off Gabby's Remote Property Management Course. The eight-module online course teaches the systems Wayne and Gabby use to self-manage their rental portfolio remotely. Use code: 50OFF at: www.reimasters.ca REI Masters Mentorship Work directly with Wayne and Gabby on acquisitions, market selection, financing, deal analysis, 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]
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  Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities 18.09.2026 47min

  Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities Today's episode is all about one of Wayne's favourite real estate investment opportunities right now: Multi-unit garden suites in Edmonton. Wayne and Gabby break down why Edmonton's current zoning creates an unusual opportunity to keep an existing house at the front of a property while developing multiple additional rental units in the backyard. For the projects Wayne is currently working on, the attraction comes down to three major things: Cash flow. Forced equity. The potential to refinance and redeploy capital. And unlike traditional infill development, the strategy does not necessarily require tearing down a perfectly good house. Why Wayne Started Looking at the Backyard When Edmonton changed its zoning rules to encourage more housing density, much of the development community focused on tearing down existing houses and building more units on the front portion of the property. Wayne looked at it differently. Instead of asking: How much more can we build if we tear the house down? He asked: What if we keep the house and develop the unused land behind it? That led to the multi-unit garden suite strategy. On the right Edmonton lot, Wayne says investors can potentially keep the existing house and add as many as four additional rental units in the backyard. Why Edmonton? According to Wayne, Edmonton currently provides a unique combination of: Flexible development rules Affordable land and housing Strong rental demand High-paying employment A strong tenant profile Alberta's landlord and tenant operating environment That combination is what makes the opportunity especially interesting to him. Wayne says that if this same development opportunity existed in a market where he did not want to operate a rental business, he would be far less interested. The market still matters. The Housing Accelerator Fund Wayne explains that Edmonton's zoning changes followed broader efforts to increase housing supply and density. He discusses the federal Housing Accelerator Fund and Edmonton receiving significant funding in exchange for housing and zoning initiatives designed to allow more homes to be built. Those changes opened the door to development opportunities that previously did not exist. Why the Opportunity May Not Last Forever One of Wayne's biggest warnings: Do not assume today's zoning rules will exist forever. Rules change. Municipalities adjust development regulations. Neighbourhood opposition can increase. Height, setback and density rules can all be modified. Wayne points to Calgary as an example of a city where development rules have already started changing. His concern is that investors may discover the opportunity after the rules have already become more restrictive. The Lots Are Limited Too Zoning is not the only constraint. The property itself needs to work. Gabby explains that multi-unit garden suites require enough usable backyard space. Wayne calls it needing a: "Big booty." A large backyard. That means investors are competing for a limited number of properties with: Large enough lots The right configuration A usable existing house A purchase price that still makes the development profitable Today, Wayne says much of the competition for those properties is still homeowners. But if more investors and developers begin targeting the same lots, demand could increase. Wayne's First Fourplex Garden Suite Is Almost Finished Wayne and Gabby also give an update on their High Park multi-unit garden suite project. The four suites are essentially complete internally. Remaining work includes exterior items such as: Sidewalks Landscaping Fencing Wayne is preparing to begin marketing the four one-bedroom suites. This is one of five projects Wayne says they currently have underway. The Cash Flow This is where Wayne believes the strategy becomes especially compelling. On the type of fourplex garden suite projects he is developing, Wayne says there is potential for: $1,500+ per month in additional cash flow after financing and operating expenses. That is not gross rent. That is the projected remaining monthly cash flow from the additional units based on the project assumptions Wayne is discussing. How Does It Perform on the 5% Rule™? Wayne then applies his 5% Rule™ Cash Flow Test. His framework: 5–6% = minimum acceptable 7–9% = strong 10%+ = exceptional For the garden suite project discussed in today's episode, Wayne says the projected result is approximately: 13.8% or roughly: 14% on the Cash Flow Test. That is why Wayne considers these projects unusually attractive from a cash-flow perspective. Actual results will depend on construction cost, financing, rents, operating expenses, property price and the specific project. Cash Flow Is Only Part of the Opportunity Wayne says the bigger opportunity may be what happens to the value of the property after construction. Suppose the total amount invested into the property and development is one number. But the completed property appraises for significantly more. The difference becomes created equity. On some of Wayne's current projects, he says he expects to create: More than $250,000 in equity upon completion. That creates another potential strategy. The BRRRR Strategy — But With Development Traditional BRRRR: Buy Renovate Rent Refinance Repeat Wayne proposes changing the renovation step. Instead: Buy Build Rent Refinance Repeat Rather than renovating a kitchen or adding a basement suite, the investor develops multiple new rental units in the backyard. If the completed property appraises high enough, refinancing may allow the investor to recover a significant portion of the capital invested. In the right project, Wayne believes there may even be an opportunity to recover most or potentially all of the initial capital. That capital can then be redeployed into another property. Cash Flow + Equity + Refinance Potential This is what makes the strategy so exciting to Wayne. One development can potentially provide: Strong monthly cash flow Significant new equity Mortgage principal paydown Long-term appreciation exposure Additional rental units The potential to refinance The ability to redeploy capital And the original house can remain in place producing rental income. A New Property Closing Today Wayne and Gabby also discuss another rental property they are taking possession of today. Their projected cash flow: Approximately $700 per month. Wayne plans to leave that cash flow inside the property reserve. Starting with approximately three months of rent in reserves and adding $700 per month would contribute another: $8,400 per year before any future rent increases. His point: Cash flow is not necessarily spending money. Cash flow builds resilience. A healthy reserve protects the investment against repairs, vacancy, changing rents and higher interest rates. Want to Know What You Can Build? If you already own an Edmonton property or want to purchase one for a garden-suite development: www.edmontongardensuites.com You can book a consultation and have the team assess what may be possible on a specific property. The site also includes information on existing garden-suite models and development options. The 5% Rule™ Learn Wayne Hillier's cash-flow framework for Canadian rental properties. Search: The 5% Rule by Wayne Hillier on Amazon. REI Masters Mentorship Work directly with Wayne and Gabby on acquisitions, market analysis, financing, 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]
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  Should You Invest in Vancouver, Montreal or Laval? 17.09.2026 1t 1min

  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]
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  Mortgage Rates Are Rising: How Real Estate Investors Should Prepare 16.09.2026 50min

  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: Cost Qualifying power Risk 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]
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  Real Estate Investor Q&A: Garden Suites, Ontario Real Estate, Exit Plans & More 16.09.2026 53min

  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]
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  The Best Real Estate Investing Advice From REIcon 2026 14.09.2026 1t 6min

  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: Legal suited houses Edmonton townhouses 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]
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  Real Estate Deals Are Everywhere — Here's Why You're Missing Them 11.09.2026 1t 1min

  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]
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  What You Need To Know Before Investing in a New City 10.09.2026 50min

  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: Landlord and tenant laws Cash flow potential Market size Industries and employment 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]
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  Is Calgary Still a Good Place to Invest in Real Estate? 09.09.2026 52min

  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]
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  Fall Rental Property Maintenance Checklist: What Landlords Should Do Before Winter 08.09.2026 51min

  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]
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  September 2026 Edmonton Real Estate Market Update 04.09.2026 52min

  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]
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  The Basement Suite Cashflows - But Is It Actually Legal? 03.09.2026 52min

  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. Send Your Questions to the Show Have a question you want Wayne and Gabby to answer? 📧 [email protected] REI Masters Mentorship The REI Masters Mentorship Program is a 12-month real estate investing coaching program with Wayne and Gabby. Students receive education, courses, resources, contracts and ongoing coaching to help them analyze deals, build systems and grow their real estate investing business. 🌐 www.reimasters.ca The 5% Rule™ Learn Wayne Hillier's framework for determining whether a rental property produces sufficient cash flow relative to the 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. Upcoming Events REIcon – The Summit Series Edmonton, Alberta September 11–13, 2026 Wayne and Gabby will be at REIcon Friday and Saturday. The Canadian Real Estate Investing Morning Show will broadcast live on stage Saturday morning, followed by Wayne and Gabby presenting later that day. 🌐 reiconference.ca Use discount code: REIMASTERS15 for 15% off your tickets. 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]