$70k and a magic calculator that gives you $700 in cash flow / mth, at least based the $205k purchase price and $70k down payment.80K isn't that bad actually if consider your condo will be "trouble free" for the next 30 years. Using another words, it will certainly cost you that much for a SFH as well in that time period. If you still can not settle your heart, thinking about "capital appreciation"... price may be double or triple in the 30 years...With depreciation reports all coming on line, there will be guaranteed special assessments that come into play. I know with my building, I'm looking at $80k (give or take) over the next 30 years. How will this be factored into the investors calculations?
But one thing I agree you that the most home owner will definitely be panic by the #, and some of them will sell their condos like no tomorrow. It is actually happening now and I treat it as an opportunity. " Depreciation report" makes me a window ( FEEL SORRY for the seller, but price can go even lower without taken). Right now I am going to buy one more unit (have bought one in last year) in a highrise building in Lougheed Mall area: two br for little bit over 200k, beside skytrain, Rofina is right it can be rented at $1400/m, cash follow nicely at $700. The catch is ---> have a $70K credit ready in the bank.
Or maybe a different definition of "cash flow"?