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Building U.S. properties portfolio to retire

This is a very popular topic many of my members and clients have been asking about - can we build a sustainable long-term portfolio of U.S. properties to retire?

About 10% of my clients are over 65s, and Canadian property price has reached a high point that rental yield is becoming negligible - at same time, the interest rate remains very low in Canada and investors can achieve 10%, 15% even 20% or more in the U.S. - so a smart use of leveraging can produce a great return for Canadian investors.

Some of my Canadian investors have bought 10 properties in Youngstown OH market - and each one is producing $600 a month, she is now getting $6,000 a month (USD), and gives her a very comfortable lifestyle in Canada.

Another of my client spreads out her portfolio - and gets $7,200 a month from 12 properties at no more than $300,000 investments, of which $200,000 is from borrowing at 2.85% interest rate at Canada, so she puts in $100,000 her own money, and gets $7,200 a month.

The above 2 examples show why increasing number of Canadians are considering investing in the U.S. for the yield reason.

And U.S. properties are rebounding strongly, as well as USD had gained strength for many months now - so investors are getting rental income plus appreciation in the property value - it's a triple gain effect as I call it sometimes.

Which markets?

I focus on 2 markets:

For Strong Rental Yield: I like Youngstown OH market as they provide 20%+ rental yield and there are many opportunities. You can either invest in "Move In Ready" properties which can be rented out very quickly, or you can invest in "Cashflowing" properties which are producing rental income already or you can buy cheaper properties, renovate them then rent them out.

For Growth + Rental: I like Dallas-Fort Worth markets. In the DFW market, I like the eastside which includes Mesquite, Garland, Rowlett, Sachase, Wylie - these areas have strong rental yield (between 10% to 14%), and growing population and less buying pressure compared to the North Dallas market where it is becoming difficult to purchase a property.

DFW offers good mix of growth and income - while the income yield is below the Ohio market, there is average growth rate of 4% in appreciation (up to 10% sometimes) compared to average of 1% to 2% growth in the Ohio market.

DFW is also a fast growing city with population surpassing 7 million people recently, it is continuing to grow at fast pace creating ever lasting demand for properties.

However, the average property price is higher, in a better areas, you will be looking at around $100,000 to $150,000 for a nice home - but financing is possible for foreign investors in Texas, which is another attractive point if you are interested in investing in Texas.

We can help you to find suitable properties either in Texas or Ohio, if you are looking for more information, please contact us for more details:

Thomas Su