US Real Estate Investing Guide for Canadians

Why Canadians Are Investing in US Real Estate

Canadian real estate has become increasingly expensive with tighter lending rules. Meanwhile, US markets offer compelling alternatives: properties that actually cash flow and financing based on rental income.

The shift toward US investing isn't just about finding better deals — it's about strategic portfolio diversification. Cross-border investing opens new opportunities without abandoning your Canadian portfolio.

What Makes Cross-Border Investing Unique

US investment property financing works fundamentally differently. DSCR loans qualify you based on the property's rental income, not your personal income. This means:

• No income verification required — qualify without proving personal income
• No US visa or work permit needed — finance as a foreign national
• Close in your LLC — liability protection and cleaner succession
• Scale beyond Canadian limits — doesn't count against Canadian capacity
• Finance short-term rentals — use projected Airbnb income

Tax Considerations for Canadian Investors

Cross-border tax planning requires attention but isn't as complex as many believe. The Canada-US tax treaty prevents double taxation. Key considerations include:

• ITIN (Tax ID Number) — obtained in 2 hours instead of 8 weeks
• LLC vs. personal ownership — affects liability and tax treatment
• FIRPTA withholding — 15% withholding on gross sale proceeds
• Depreciation benefits — accelerated schedules reduce taxable income
• Foreign tax credits — prevent double taxation on your return

This guide organizes everything you need to know: from understanding why markets make sense to executed your first acquisition with proper planning.