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 rather than your personal income. On the mortgage side:

• Typically qualify without full income documentation through DSCR loan programs — subject to lender underwriting
• Foreign-national financing programs do not require a US visa for the mortgage itself — your immigration status still affects other aspects of US ownership and rental
• Close in a US entity your attorney has formed — the entity and any liability outcomes are matters for your US legal team
• DSCR financing is evaluated property-by-property on the US side and does not directly count against your Canadian borrowing capacity — individual underwriting still applies
• Short-term-rental financing is available from some DSCR programs using projected Airbnb or VRBO income — program eligibility varies by lender

Topics Your Cross-Border CPA and Attorney Will Cover

Cross-border tax and legal planning is its own field. LendCity does not offer tax or legal advice. Topics your cross-border CPA and US attorney will discuss with you, including:

• ITIN (Tax ID Number) — how and when to apply
• Entity choice (LLC, LP, direct ownership) and its tax and liability consequences
• FIRPTA withholding on gross sale proceeds
• Depreciation treatment and how schedules interact with taxable income
• Foreign tax credits and how the Canada-US tax treaty applies to your situation

This guide organizes what Canadian investors ask about most often, from how US markets are structured to what to expect on the mortgage side of a cross-border acquisition. For legal and tax questions, work with qualified US-side professionals.