A+ Market Investing: Why Quality Beats Cheap Properties

Here’s something that might surprise you: having 100 investment properties doesn’t always mean you’re winning at real estate.

Monica Jaszek learned this the hard way. After 14 years of investing, she made a bold move during the pandemic – she sold off all her properties in Northern Ontario and completely changed her strategy.

The reason? Sometimes cheaper really isn’t better.

The Problem With Cheap Properties

Monica’s Northern Ontario properties looked amazing on paper. She was buying places for $40,000 and renting them for $1,000 a month. Sounds like a dream, right?

Wrong.

Here’s what actually happened:

Jobs dried up when the government changed and stopped investing in the region
Vacancy rates shot up as people left for work elsewhere
Property managers turned corrupt, stealing rent money and lying about occupancy
Properties barely appreciated in value over years
Managing over 100 units from far away became a nightmare
Ontario’s tenant-friendly laws meant a non-paying tenant could stay for a year and a half

Monica spent years clearing out this portfolio. Looking back, she’s grateful to be done with it.

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The New Strategy: Quality Over Quantity

Monica asked herself a powerful question: “Do you want 100 problematic properties or a $20 million portfolio with 10 properties?”

During the pandemic boom, she sold properties in Hamilton, Barrie, Kitchener-Waterloo, and Windsor at all-time highs. Then she moved all that money into what she calls “A+ markets” like downtown Toronto, Markham, Stouffville, and Calgary.

The difference is huge. Better tenants. Less drama. Properties she can actually visit in minutes instead of driving hours. And most importantly – real Appreciation potential.

Why Location Beats Cash Flow Every Time

Monica is blunt about this: markets that are perpetually marketed as “the next best thing” usually aren’t.

She’s been hearing about Cleveland, Ohio for 14 years. It’s still flat. Same with Kansas City, where she invested 12 years ago. Detroit is too cheap to be sustainable. Many Washington State markets have gone nowhere.

In Canada, she warns against Edmonton, most of New Brunswick outside Halifax, and generally most provinces outside BC and Ontario.

Why? Because without natural appreciation, you’re just treading water. You can refinance all you want, but if your property is worth the same in ten years, you’re just trading apples for apples. No wealth gets built.

The Real Cost of Bad Tenant Laws

Here’s a number that should scare you: $50,000.

That’s what a non-paying tenant can cost you in Ontario when they can legally stay for a year and a half without paying rent. Monica says you should write that number on your investment spreadsheet before you buy anything.

Compared to that, insurance increases or property tax hikes are nothing.

Moving Into U.S. Markets

Monica has been investing in the U.S. for 14 years, so this isn’t some new trend for her. But she’s very specific about how to do it right.

Florida: Ocala and Marion County

Monica used to hate Florida. Too much overdevelopment, too many vacancies, rental properties everywhere.

But Ocala is different. It’s not the Disney area or the beach communities. It’s not hurricane-prone like Cape Coral or Naples.

What it has: 300,000 people, 30,000 new jobs from Chewy, FedEx, and Amazon distribution centers. Properties run about $250,000 USD. Insurance is only $800 per year because they use block construction instead of wood frame.

Monica’s team just built 18 new homes there with an award-winning builder. Even with massive delays from hurricanes affecting other areas and an 8-month permitting delay, investors still saw 66% ROI on the forced appreciation.

Texas: Houston

Their Houston team is led by Zandra, who owns her own contracting company. This means they can do value-add projects and development deals. They offer both active investment opportunities and passive options for smaller amounts.

Other Markets

Monica’s company RPI Education also has teams in Phoenix (student rentals and short-term rentals), Atlanta (though it’s more cash flow neutral), and even Los Angeles (despite its tenant law challenges).

Rules For Investing Outside Your Backyard

If you’re going to invest in another market, Monica has non-negotiable rules:

Visit first. She tells a story about a client who spent five days in Atlanta walking properties, only to realize it wasn’t right for him. Better to find out before you buy.

Partner with local experts. Your team needs to live there, have a successful portfolio there, and show you their properties. If they won’t walk you through what they own, run away.

You can’t be the smartest person on your team. Monica says if you’re the key person in your operation, it’s not a good operation. You need people stronger than you leading the show.

Understand active versus passive. Active investors must travel regularly and maintain oversight. Passive investors need to thoroughly vet who they’re investing with and understand the model completely.

The BRRRR Strategy Across All Properties

Monica uses the BRRRR strategy (Buy, Renovate, Rent, Refinance, Repeat) on everything. This lets her force appreciation through improvements, pull equity back out, and repeat the process.

She emphasizes you need to make money when you buy, not just hope for appreciation later. Whether it’s building from scratch, renovating, or adding square footage, you need to create value immediately.

Is Now A Good Time To Invest?

Monica’s answer: it’s always a good time to invest.

But she’s realistic. With current interest rates, cash cows don’t really exist in buy-and-hold real estate anymore. Her Florida properties cash flow about $400 USD per month after everything – she calls this “fairly cash flow neutral.”

The point isn’t massive monthly cash flow. It’s appreciation potential and diversification. For foreign investors using higher interest rate financing, it still makes sense because you own stock in U.S. real estate, earn U.S. dollars, and hedge your currency risk.

Stop Freaking Out About The Wrong Things

Monica sees investors panicking about:

Florida insurance costs going up 40% (but with the right construction type, it’s only $800/year)
Toronto tax increases of 16.5% (which is just a couple thousand dollars on properties appreciating significantly)
Mortgage rate increases (which reduce returns but don’t eliminate them with proper fundamentals)

Her advice? Take your fears out of the air, write them down on paper, and really examine them for what they are.

The Bottom Line

Monica’s journey from 100+ cheap properties to a concentrated portfolio in A+ markets tells you everything you need to know about successful real estate investing.

It’s not about how many doors you have. It’s not about finding the cheapest price per door. It’s not about chasing the highest cap rate on paper.

It’s about investing in markets with strong fundamentals, having boots-on-the-ground teams you trust, making money when you buy through forced appreciation, and holding properties that will actually be worth more in ten years.

Everything else is just noise.

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Frequently Asked Questions

Why did Monica sell all her Northern Ontario properties?

Monica sold her Northern Ontario properties because they had weak economic fundamentals, high vacancy rates, corrupt property management, no appreciation, and were too far away to properly manage. Despite looking good on paper with $40,000 purchase prices and $1,000 monthly rents, they became problematic and unsustainable.

What are A+ markets in real estate investing?

A+ markets are prime locations with strong economic fundamentals, consistent housing demand, and reliable appreciation potential. Examples include downtown Toronto, Markham, Stouffville, and Calgary. These markets offer better tenant quality and more stable long-term returns compared to cheaper secondary or tertiary markets.

How much can a non-paying tenant cost in Ontario?

A non-paying tenant in Ontario can cost at least $50,000 because tenant-friendly laws allow them to stay for up to a year and a half without paying rent. Monica recommends writing this potential cost on your investment spreadsheet before purchasing any Ontario property.

What should you do before investing in a U.S. market?

Before investing in a U.S. market, you should visit the area first and spend several days walking properties and touring neighborhoods. Meet your team in person, visit their existing portfolio properties, and verify they live locally and have successful investment history in that specific market.

Why does Monica focus on Ocala, Florida instead of other Florida markets?

Monica chose Ocala because it has strong economic fundamentals with 300,000 people and 30,000 new jobs from major employers like Chewy, FedEx, and Amazon. It's not in hurricane-prone areas, uses affordable block construction, has low insurance costs ($800/year), and isn't overdeveloped like most Florida markets.

What is the BRRRR strategy?

BRRRR stands for Buy, Renovate, Rent, Refinance, Repeat. This strategy allows investors to force appreciation through improvements, extract equity through refinancing, and use that equity to purchase additional properties. Monica uses this approach across all her investments to build wealth faster.

Is now a good time to invest in real estate?

According to Monica, it's always a good time to invest if the numbers work for your goals. While current interest rates mean cash flow is lower, investing in markets with strong fundamentals still makes sense for appreciation potential, diversification, and long-term wealth building.

What's more important: cash flow or appreciation?

Monica emphasizes that appreciation is more important than cash flow for building long-term wealth. Without natural appreciation, refinancing just trades apples for apples with no real wealth creation. She prioritizes markets with strong appreciation potential over cheaper properties with higher cash flow but flat values.

Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.

Written by

LendCity

Published

December 22, 2025