If you’re a Canadian real estate investor feeling frustrated with rising prices, strict tenant laws, and shrinking cash flow, you’re not alone. More and more Canadian investors are looking south of the border—and finding opportunities that just don’t exist here anymore.
Derek Wormsbecker, a mortgage agent at LendCity, recently made the switch from Canadian to US real estate investing. His experience shows why so many investors are making the same move.
How One Canadian Property Led to US Investment
Derek’s journey started like many investors—he kept his first home as a rental when upgrading to a bigger place. He built a small Canadian portfolio over several years. But when one of his tenants gave notice, he had to face reality.
The property was losing money every month. He could either raise the rent slightly to break even or sell and try something different. He chose to sell.
The property sold over asking, giving him capital to redeploy. That’s when he discovered SHARE, a company that helps Canadians invest in US real estate. After attending a workshop, he was sold on the idea.
Book Your Strategy CallThe Arkansas Deal That Changed Everything
Derek’s first US purchase was a brand new house in Arkansas for $176,000 USD. Yes, brand new construction at that price.
He initially looked at Atlanta but wasn’t finding the numbers he wanted. When his contact at SHARE sent him the Arkansas listing, he admitted he knew nothing about the market. But the numbers worked, and he trusted the expertise he was getting.
The house came with a one-year builder warranty. And Derek discovered an unexpected bonus—Arkansas has uniquely strong landlord protection laws. It’s apparently the only US state where not paying rent can result in criminal charges. That creates a powerful incentive for tenants to pay on time.
Why US Properties Beat Canadian Ones Right Now
Landlord-Tenant Laws Actually Protect Landlords
This is the biggest difference. In Ontario, the Landlord and Tenant Board creates nightmare scenarios for property owners. Stories of tenants not paying for months or destroying properties with no consequences are common.
US laws are much more balanced. Landlords have real options when problems happen. The system works faster and more fairly.
You Need Way Less Money to Get Started
Think about what it takes to invest in Ontario now. Duplexes and triplexes cost a fortune. Garden suite conversions require massive capital. Even if you finance everything, how do you cash flow?
In the US, you can buy quality investment properties for a fraction of Canadian prices. Even after currency conversion, the capital requirements are dramatically lower. This means you can actually achieve positive cash flow from day one.
No Crazy Rent Control Rules
Ontario’s rent control can kill your cash flow. Scott shared his own experience—a property that cash flowed well before COVID now loses $700 per month after interest rate increases. But rent control means he can’t adjust rents enough to cover the higher costs.
US markets generally don’t have strict rent control. You still need to stay competitive with market rates, but you have flexibility to adjust rents based on your actual expenses and market conditions.
This matters even more because US investment mortgages are typically 30-year fixed rates. Your mortgage payment never changes unless you refinance. Property taxes, maintenance, and insurance might creep up, but your biggest expense stays flat for three decades.
Property Taxes Are More Predictable
US property taxes don’t typically jump 10% or more per year like they do in Hamilton and the GTA. There’s one catch to know about—when you buy a property, the sale can trigger a reassessment if the property hasn’t been assessed in years.
So a property with $1,200 annual taxes based on a $50,000 assessment from years ago might jump to $3,000+ when reassessed at your $200,000 purchase price. But after that adjustment, increases go back to modest annual growth.
You’re Making US Dollars
Derek’s planning a US vacation and he’s excited that he now has a US bank account with US cash. No conversion fees or exchange rate worries.
Beyond that convenience, US dollar income gives you currency diversification. You’re not completely dependent on the Canadian economy and Canadian dollar.
How US Financing Actually Works for Canadians
This surprised Derek at first. US lenders don’t care about your Canadian credit score, bank statements, or income documents. They don’t ask for your T4 or tax returns.
They ask one question: Does this property cash flow?
They calculate whether the rental income covers the mortgage payment, property taxes, insurance, property management, maintenance reserves, and vacancy reserves. This is called DSCR lending (Debt Service Coverage Ratio).
If the property supports itself, you qualify. It’s that simple.
You still need to provide ID and all your corporate documents (LLC or LP paperwork). The faster you get documents organized, the faster you close.
Watch Out for These Financing Quirks
If you’re looking at really cheap properties (under $110,000 in Ohio, for example), know that rates will be higher. Two reasons:
First, US lenders give better rates for larger loans. Small loans get worse pricing.
Second, some states require loans under certain amounts to be open (no prepayment penalty). Open loans always cost more because the lender faces more risk.
This doesn’t mean you shouldn’t buy in these markets. Just make sure you run your numbers with accurate financing costs.
Don’t Just Buy Because It’s Cheap
Scott made an important point about market selection. Don’t buy somewhere just because the purchase price is low.
Look for real economic fundamentals. Is new construction happening? Are companies expanding or moving to the area? Are major employers opening facilities? Is the population growing?
Scott mentioned researching Indiana because Google is building a massive plant there. He looked at the specific town and found lots of additional development and opportunity.
Compare that to relying on a single company announcement. Intel announced an Ohio facility that’s now on the back burner and might not happen at all. Markets with diverse economic drivers are safer bets.
Derek’s Plans Going Forward
Derek’s other Canadian rental tenants are moving out this year. He’s already decided to sell that property.
Every dollar from that sale is going into another US property. He’s also planning to refinance his Arkansas house to pull out equity for more investments.
When asked if his next purchase would be in the US or Canada, he didn’t hesitate: “The answer is obvious for me. I’m definitely buying in the US 100%.”
He’s looking at Michigan and Ohio based on what he’s seeing from other LendCity clients. But he’ll have more conversations with SHARE and other team members before deciding on the exact market.
The Support Makes All the Difference
Derek emphasized how valuable SHARE’s support was for his first US deal. They helped with everything—setting up the corporate entity, opening the US bank account, submitting offers, booking inspections, and arranging property management.
Doing all that research independently would have taken forever. Finding trustworthy professionals in an unfamiliar market is hard. Having experienced people walk you through the process removed huge barriers to getting started.
For Canadian investors tired of the challenges in our market, US real estate offers a genuine alternative. Lower prices, better landlord protection, no rent control, and property-based financing make it possible to build a cash-flowing portfolio again.
Book Your Strategy CallFrequently Asked Questions
No. US lenders don’t look at your Canadian credit score, income, or bank statements. They only care if the property generates enough rent to cover all expenses including the mortgage, taxes, insurance, and property management.
Much less than Canadian investment properties. You can find quality properties in markets like Arkansas for under $200,000 USD. Even after currency conversion, the capital requirements are significantly lower than Ontario markets.
Yes. US laws are much more balanced and give landlords real options when problems arise. The system works faster than Ontario’s Landlord and Tenant Board, and some states like Arkansas have particularly strong landlord protections.
Generally yes. Most US markets don’t have strict rent control like Ontario. You need to stay competitive with market rates, but you have flexibility to adjust rents based on expenses and market conditions.
Not usually. You might see a one-time increase if you buy a property that hasn’t been reassessed in years and your purchase triggers a new assessment. But after that, increases are typically modest compared to the 10%+ annual jumps common in Ontario.
DSCR stands for Debt Service Coverage Ratio. It’s how US lenders qualify Canadian investors for investment property loans. They calculate whether your rental income covers all expenses by a sufficient margin. If the property cash flows, you qualify.
No. Look for markets with strong fundamentals like new construction, expanding companies, major employers opening facilities, and growing populations. Cheap properties in declining markets are cheap for a reason.
Yes. US lenders give better pricing for larger loan amounts. Very small loans (under $110,000 in some states) face higher rates. Some states also require small loans to be open with no prepayment penalty, which increases rates further.
