Posted by: Karim Ali
Coffee with Karim
How To Interview a Buyer Realtor
Est. read time: 6-7 minutes
A lot of people overthink real estate investing because they think the math is complicated. But figuring out whether a property in Ottawa is a good deal isn’t rocket science; you just need a simple framework and realistic numbers. You don’t need a giant spreadsheet or a finance background. You just need to know what to look for.
Step 1: Get Real Rents - Not Random Hopes
Most bad deals start with overestimating rent. Before you run any numbers, you need to know what the place would actually rent for today.
Here’s how to get real Ottawa rent comps:
1. Check currently leased properties (not just listings).
- Ask your realtor for leased data through MLS
- Prioritize units with the same size, parking setup, and level of renovations
- Look at the last 3–6 months, not older
2. Check “condition” carefully.
A renovated 2-bed in Westboro renting at $2,650 doesn’t mean your older, original-unit in the same area will rent for that.
3. Don’t rely on asking rents.
Asking ≠ getting.
Someone listing a 2-bed for $2,800 doesn’t mean it’ll rent for that.
Once you know the real rental income, the rest of the math becomes much easier.
Step 2: Use Conservative Expenses
This is where investors get themselves in trouble, because they lowball the expenses. Ottawa is predictable if you follow a basic template.
Below are the big categories and what to reasonably plug in:
Condo Fees
If you’re buying a condo or condo-townhome, this goes in full.
Don’t assume you’ll get higher rent to “cover” it. Tenants don’t care about your fees.
Property Taxes
Ask your realtor to check the amount through MPAC if it isn’t available on the listing.
Utilities
If tenants pay, great.
If you pay, use:
- Hydro: $60–$140/month
- Water: $40–$80/month
- Gas: $60–$150/month
(Duplexes and older homes skew higher.)
Insurance
Use $75–$125/month as a safe range.
Repairs & Maintenance
A rule of thumb:
- Newer builds: 3–5% of gross rent
- Older homes: 8–10% of gross rent
Vacancy Budget
Even though vacancy is low in Ottawa, always include 3%.
By being conservative, you avoid surprises later, and you’ll know right away if a property actually makes sense.
Step 3: Cash Flow First, Appreciation Second
The biggest mistake I see in Ottawa is investors buying for appreciation only.
Appreciation will likely create gains over 10–20 years, but it doesn’t pay your bills every month.
When you run the deal, calculate:
Monthly Cash Flow:
Rent – Expenses – Mortgage = Cash Flow
If you end up slightly positive or even break-even in a strong area, that can still be a solid long-term investment. But if you’re negative $500/month, that isn’t a good deal unless you’re doing heavy forced appreciation or adding a secondary unit.
Cash flow is your safety net.
Appreciation is your bonus.
Step 4: Stress-Test the Mortgage Rate
Interest rates don’t have to scare you, you just need to run two versions of the deal:
- Today’s rate (for example: 5.49%)
- A “what if things change” rate (like 6.19%)
This tells you exactly how sensitive your deal is.
Example:
Mortgage at 5.49%:
Monthly payment = $1,420
Mortgage at 6.19%:
Monthly payment = $1,510
If the deal only works at today’s rate and completely collapses at a slightly higher one, it’s risky. Ottawa is stable, but you still want to protect yourself.
Most solid Ottawa deals still stay okay when tested 0.5%–1% higher.
Step 5: Confirm the Building Fundamentals
The numbers can look great, but none of it matters if the building is a nightmare.
Here’s what to confirm:
Roof
- Asphalt roofs last 12–20 years.
- Townhomes in Barrhaven, Orleans, Stittsville often hit roof cycles around the same time.
Furnace + A/C
- Ottawa winters destroy old furnaces fast.
- A 20+ year-old furnace can cost $4,000–$7,000 to replace.
Windows
- Vinyl windows last 20–30 years.
- Watch for fogged panes – usually means seal failure.
Electrical Panels
Ottawa-specific red flags:
- Stab-Lok (FPE) → must often be replaced
- 60-amp service → usually needs upgrading
- Aluminum wiring → needs pigtailing at a minimum
Plumbing
Big Ottawa problem materials:
- Poly-B → common in 90s homes
- Kitec → common in early 2000s condos
- Old cast iron → older urban neighbourhoods
Foundation + Water Management
Ottawa clay + Ottawa freeze-thaw cycles = cracks are normal but must be assessed.
Condo Buildings
Don’t forget:
- Reserve fund status
- Special assessments
- Upcoming repairs
A property with great fundamentals usually beats a “cheap” one with hidden problems.
That's All!
At the end of the day, figuring out if a property is a good investment in Ottawa isn’t complicated. It just comes down to looking at the real rents, being honest about the expenses, running the cash flow, and making sure the home itself is solid. Once you do that a few times, it starts to feel pretty straightforward. The goal isn’t to chase “perfect” deals, it’s to make smart, informed choices that fit your budget and long-term plans. Ottawa’s a steady market, and if you follow a simple process, you can make investing a lot less stressful and a lot more predictable. If you ever want a second set of eyes on a property you’re considering, I’m always happy to walk through the numbers with you.
609
120