Nobody buys in York Region because it is cheap. The case rests on tenant demand: proximity to Toronto, a large local employment base particularly in Markham's technology and corporate sector, transit along the Yonge and Highway 7 corridors, strong schools that attract families, and continued population growth.

The flip side is that entry prices are high relative to achievable rents, which means positive cash flow from day one is difficult here and is not what most local investors are buying for. Be clear with yourself about whether you are buying for income or for long-term appreciation, because the two lead to different properties.

If the plan depends on appreciation, say so out loud. It is a legitimate strategy and it is also a bet. Treating it as a certainty is how people end up carrying a property they cannot afford through a flat five years.

Lenders treat a property you will not occupy differently from one you will. Expect a larger down payment requirement, different qualifying criteria, and often a different rate. Mortgage default insurance, which allows smaller down payments on owner-occupied homes, generally is not available on a property bought purely as a rental.

How much of the expected rental income a lender will count toward your qualification varies considerably between lenders, and so does whether they require the unit to be legal. If you are buying a home with a basement suite and relying on that income, confirm the lender's position in writing before you make an offer, not after.

Requirements change and differ between lenders, so none are quoted here. A mortgage broker who works with investors will tell you in one conversation what you can actually do, and that conversation should come before you start viewing.

One more thing worth asking: how a second property affects your ability to finance anything else, including your own next home.

Almost every spreadsheet that gets shown to us has rent on one side and a mortgage payment on the other. Here is what else belongs in it.

Most residential tenancies in Ontario are governed by provincial legislation that sets out both parties' rights and obligations, and disputes go to a provincial tribunal rather than to court. Ontario also requires a standard form of lease for most residential tenancies.

The practical reality for a landlord: tenants have substantial protections, the grounds and process for ending a tenancy are prescribed and cannot be shortcut, rent increases for most units are regulated and limited in frequency and amount, and tribunal timelines have at times been lengthy. If a tenancy goes wrong, it can take a long time and cost a great deal to resolve.

The conclusion most experienced landlords reach is simple. Spend your effort on selecting the right tenant rather than on planning how to remove the wrong one. Verify income and employment, check references properly, meet the person, and do not rush a vacancy because an empty month feels expensive. One bad tenancy costs far more than three empty months.

The rules in this area are detailed and they change. Nothing here is a substitute for reading the current legislation and taking advice from a lawyer or a paralegal who works in this field.

An existing tenancy generally continues when the property changes hands, on its existing terms and at its existing rent. If the rent is well below current market, that is what you are buying, and raising it is subject to the rules rather than to your intentions.

Ask for the lease, the rent history, the deposit held, and any notices or tribunal history. Ask whether the tenant has been given any notice and on what basis. A seller promising vacant possession is making a commitment that depends on a legal process, and your lawyer should look at how that is drafted before you sign.

If your plan requires the unit to be empty, whether to occupy it yourself or to renovate, treat that as a legal question to resolve before the offer rather than a practical one to sort out afterwards.

Rental income is taxable and reportable, and legitimate expenses are generally deductible against it. The distinction between a current expense and a capital improvement matters and is not always intuitive.

A property that is not your principal residence does not benefit from the principal residence exemption on sale, so a gain may be taxable. Converting a property between personal and rental use can also have tax consequences at the point of the change, which surprises people who move out of a home and rent it rather than selling it.

Whether to hold a property personally or through a corporation is a genuine question with real trade-offs, and the right answer depends on your circumstances rather than on what worked for someone else.

All of this is general and the rules change. Speak to an accountant before your first purchase, not at your first tax filing.

Negative cash flow you did not plan for. Carrying a shortfall deliberately is a strategy. Discovering one is a problem, and it gets worse at renewal.

A difficult tenancy. The cost is not only unpaid rent. It is months of process, legal fees and often property damage.

A special assessment on a condo. Reading the reserve fund study before you buy is the only defence, and it is a short read.

An unpermitted suite you assumed was legal. Affects insurance, financing and resale, and can attract an order to stop using it.

Flat or falling values when the plan needed appreciation. The honest question is whether you can comfortably hold the property for a decade if it does not move. If the answer is no, the property is bigger than your position.