Here’s something I didn’t expect to say after 15 years of lending in Canada: we’re getting more calls about US investing than Canadian investing right now.
That’s not a small thing. That’s a signal.
Canadian investors are moving money south of the border in the billions. And honestly? I get it. When you look at the numbers side by side, it’s hard to argue. But before you wire your down payment to a Florida LLC, you need to know the full picture — the good and the bad.
Let’s break it all down.
The Cons: What to Watch Out For
Politics and Policy Risk
Look, I’m not here to tell you who to vote for. But investors ask me about Trump all the time — whether his policies make the US a good or bad bet.
Here’s how I think about it: stop looking at the country and start looking at the state.
When you zoom into a specific market, you’re evaluating the governor, the local landlord laws, population growth, new employers moving in — not whoever’s in the White House. The same logic applies in Canada. People hated Trudeau. People loved Trudeau. Either way, investors kept buying deals. You don’t let the top of the political chain decide your portfolio strategy.
Focus on fundamentals. Population growing? Employers moving in? Landlord-friendly laws? That’s your checklist.
It Could Hurt the Canadian Economy
I’ll be honest here because I think it matters. When billions of dollars leave Canada to buy US real estate, that’s capital that isn’t building housing, creating jobs, or funding development here at home.
I don’t think it’s permanent. But Canada has to get more competitive — on taxation, on landlord rules, on making it worth it for investors to stay. Ontario’s Bill 23 was a step. Scrapping the proposed capital gains tax hike was a step. But there’s more work to do.
The irony? The more money leaves, the louder the signal gets to politicians that something needs to change. So in a weird way, investors voting with their wallets might actually push Canada to improve.
But I won’t pretend there’s no cost to it.
There’s a Learning Curve
The US is a brand new market for most Canadians. Different laws, different processes, different everything. You need to build a team from scratch — property managers, contractors, a real estate agent who works with out-of-state investors.
That takes time. It’s not overwhelming, but it’s real work upfront. Once the machine is running, it runs well. Getting it started is the hard part.
Taxation Gets Complicated Fast
The US has an estate tax. Canada has its own rules. And if your Canadian accountant doesn’t understand cross-border tax law, you could end up filing things wrong on both sides.
You need someone who speaks both languages — Canadian and US tax. Not one or the other. Both. The goal is to keep your tax bill as low as legally possible across both countries, and that requires someone who knows the full picture.
There are also insurance products specifically designed to cover US estate tax exposure upon death. Worth exploring once you’re building a real portfolio down there.
Currency Conversion Cuts Both Ways
You’re buying in US dollars, which means your Canadian cash takes a hit on the way in. Right now, that’s a real cost — roughly 40 cents on every dollar depending on the rate.
But here’s the flip side: when rent comes back to Canada, it comes back with that same 40% currency premium. Your $2,000 USD rent check becomes $2,800 CAD. That changes the cash flow math in a big way.
The Pros: Why Investors Are Flooding Into the US
Purchase Prices Are Dramatically Lower
This is the big one. In many Canadian cities, a single-family home runs $500,000 or more — and that’s before you even talk about cash flow. In parts of the US, you can buy that same house for a fifth of the price.
If you’re maxed out in Canada, or you just can’t make the numbers work here, the US opens the door wide. Lower entry price means lower mortgage, lower risk, and a faster path to positive cash flow.
Qualifying Is Shockingly Simple
In the US, many investment property loans — called DSCR loans (Debt Service Coverage Ratio loans) — don’t require your personal income or even your personal credit score.
Here’s how it works: the lender looks at the property. If the rent covers the mortgage and expenses, you’re approved. That’s it. No T4s. No income verification. No stress test.
For Canadian investors who are self-employed, maxed on their Canadian debt ratios, or just can’t qualify for another mortgage here, this is a game-changer.
Landlord-Friendly Laws That Actually Protect You
In some US states — mostly the red states — the rules heavily favor landlords. We’re talking no rent control, faster eviction processes, and in some states, non-payment of rent is actually a felony. People have gone to jail for it.
Compare that to Canada, where I have a property right now where the tenant pays $1,500 below market rent, my variable mortgage went through the roof after COVID, and I literally cannot raise the rent to cover my costs. I’m subsidizing their housing. I don’t regret being human about it, but I have zero leverage.
In the US, if insurance costs spike — say a flood zone raises premiums — you can pass that cost to the tenant through a rent increase. You have control over your own investment. That’s how it should work.
Unlimited Properties, No Caps
In Canada, lenders start cutting you off after a certain number of properties. Qualification gets harder. Doors close.
In the US with DSCR loans, there’s no limit. As long as the property cash flows and you have the down payment, you can keep buying. Investors are stacking properties, waiting five years (when the loan becomes penalty-free), refinancing to pull equity, and redeploying that cash into the next deal.
That’s a wealth-building machine.
You Get Paid in US Dollars
This one deserves its own spotlight. Every rent check you collect in the US is worth 40% more when you bring it back to Canada. Some investors don’t even bring it back — they keep it in the US and roll it into the next deal.
Either way, you’re building equity in a stronger currency. That’s a real, tangible advantage that compounds over time.
DSCR loans mean the property qualifies itself — not you. If you’re maxed out on Canadian debt ratios or self-employed, book a free strategy call with LendCity and we’ll show you exactly how a US rental could cash flow without touching your personal income numbers.
The Bottom Line
The cons are real — don’t ignore them. You need a cross-border tax expert. You need to build a team. You need to pick your state carefully based on fundamentals, not feelings.
But the pros? Lower prices, easier qualifying, landlord-friendly laws, no portfolio caps, and a currency advantage on every dollar you earn. That’s a powerful combination.
The investors I talk to who’ve done the work and built their US portfolio? They don’t regret it. The ones who hesitated because they didn’t like the politics? They’re still sitting on the sidelines watching others build wealth.
Do the homework. Pick the right market. Build your team. Then go.
The currency math alone changes everything — your $2,000 USD rent check comes back as $2,800 CAD. schedule a free strategy session with us and we’ll run the actual numbers on a US deal so you can see what that looks like for your portfolio.
Frequently Asked Questions
Do I need a US credit score to buy investment property in the US as a Canadian?
What is a DSCR loan and how does it work?
Which US states are best for Canadian investors?
How does currency conversion affect my US real estate investment?
Do I need a separate tax advisor for US real estate?
What is the US estate tax and does it affect Canadians?
Can I buy unlimited properties in the US?
Is US real estate actually cheaper than Canadian real estate?
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a licensed mortgage professional before making any financing decisions.
Written by
LendCity
Published
March 2, 2026
Reading time
8 min read
DSCR Loan
A loan qualified based on the property's Debt Service Coverage Ratio rather than the borrower's personal income, popular for US investment properties.
Rent Control
Provincial regulations that limit how much a landlord can increase rent annually for existing tenants. Rules vary by province - Ontario caps increases at a government-set guideline, while Alberta has no rent control. Rent control directly impacts investment cash flow projections.
Estate Tax
Estate tax refers to a tax levied on the total value of a deceased person's assets, including real estate holdings, before distribution to beneficiaries. It is worth noting that Canada does not have a formal estate tax; instead, a deemed disposition at death triggers capital gains tax on appreciated real estate investments, which achieves a similar outcome.
Currency Conversion
Currency conversion in Canadian real estate refers to the process of exchanging one currency for another, which is particularly relevant for investors purchasing properties abroad or foreign buyers acquiring Canadian real estate. Fluctuations in exchange rates between the Canadian dollar and foreign currencies can significantly impact the true cost of a property, mortgage payments, and overall investment returns.
Landlord-Friendly States
Landlord-friendly states refer to U.S. states with laws and regulations that favour property owners over tenants, including streamlined eviction processes, fewer rent control restrictions, and greater flexibility in lease terms. For Canadian real estate investors, these states—such as Texas, Florida, and Georgia—are often attractive markets due to lower regulatory burden, stronger cash flow potential, and reduced legal risk when managing rental properties.
Cross-Border Investing
Cross-border investing refers to Canadian real estate investors purchasing, financing, or managing properties in the United States or other foreign countries, which involves navigating different tax systems, financing requirements, currency exchange risks, and legal frameworks. This strategy allows Canadians to diversify their portfolios geographically and potentially access markets with lower property prices, higher rental yields, or stronger appreciation potential than their domestic market.
Debt Service Coverage Ratio
The Debt Service Coverage Ratio (DSCR) measures a property's annual net operating income divided by its total annual mortgage payments, indicating whether rental income can cover debt obligations. Canadian lenders typically require a DSCR of 1.1 to 1.3 or higher for investment properties, meaning the property must generate 10-30% more income than needed to service the debt.
Hover over terms to see definitions. View the full glossary for all terms.