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 non-paying tenants could remain for many months before removal was possible
Monica spent years clearing out this portfolio. Looking back, she’s grateful to be done with it.
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.
Monica went from 100 problematic doors to a focused $20 million portfolio in A+ markets. Results specific to this investor’s situation; individual outcomes will vary. If you’re rethinking your own portfolio, book a free strategy call with LendCity™ to discuss your mortgage financing options.
The difference between a good deal and a great one often comes down to how it’s financed — book a free strategy call with LendCity™ and let’s look at the numbers together.
For a deeper look at the financing angle behind this topic, see our flip mortgage financing guide.
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 your home to pull out equity 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 given the time it takes to complete the eviction process and re-rent the unit. 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. Results specific to this project; individual outcomes will vary based on market conditions, timing, and property specifics.
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).
If a non-paying tenant in Ontario can cost you $50,000 and properties in your market barely appreciate, it’s worth exploring better options — book a free strategy call with LendCity™ to discuss mortgage financing for your next investment property.
Whether you’re buying your first rental or your tenth, having the right mortgage structure matters — schedule a free strategy session with us to build a plan that scales with you.
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 U.S. mortgage financing options, 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.
Key Takeaways:
- The Problem With Cheap Properties
- The New Strategy: Quality Over Quantity
- Why Location Beats Cash Flow Every Time
- Moving Into U.S. Markets
- Rules For Investing Outside Your Backyard
Frequently Asked Questions
Why did Monica sell all her Northern Ontario properties?
What are A+ markets in real estate investing?
How much can a non-paying tenant cost in Ontario?
What should you do before investing in a U.S. market?
Why does Monica focus on Ocala, Florida instead of other Florida markets?
What is the BRRRR strategy?
Is now a good time to invest in real estate?
What's more important: cash flow or appreciation?
Disclaimer: This case study is presented for educational purposes only. Some details may have been adjusted for clarity and readability. Individual investment outcomes vary — past results do not guarantee future performance. LendCity™ Mortgages provides mortgage financing services for real estate investors and does not offer investment, legal, or tax advice.
Disclaimer: LendCity™ Mortgages is a licensed mortgage brokerage. Content on this page is for educational purposes only and does not constitute legal, tax, investment, securities, or financial-planning advice. Rates, premiums, program terms, and regulations referenced are as of the page's last updated date and are subject to change. Any investment returns, rental yields, tax savings, or case-study figures shown are illustrative only — they are not guaranteed, not typical, and individual results will vary. Consult a licensed lawyer, Chartered Professional Accountant, or registered dealer before acting on any information above. Editorial standards.