Many Canadians are buying U.S. properties because of the cashflow, U.S. properties offer possibly the world's highest rental yield because of the affordability - this is still the case even though the U.S. housing price had recovered remarkably, there are still many opportunities remain throughout different parts of U.S.
When comes to analyzing the rental yield - you should look at the following numbers:
1. Gross Rent - This is how much you get each month from your tenant
2. Property Management Fee - If you are using someone to manage your property, this equates to a % of the rent each month.
3. Insurance - This can vary significantly from state to state or city to city. There are special insurance required in some southern states because of hurricane or special insurance in mid-west because of tornados.
4. Property Tax - property tax is often a big surprise for Canadian investors, this is because U.S. tax system is very different from Canada. The schools are funded by local city, and therefore, there will be tax included to fund schools. The property tax is also much higher in states where there are no personal income tax (eg. Texas) or no sales tax.
5. Net Operating Income - once you deduct all the items, this is where you will see NOI - this is the figure the bank will use to assess your borrowing power.
Keller Williams Realty
18383 Preston Rd. Ste 150
Dallas, TX 75252, USA
(469) 347 1839