Posted by: Karim Ali
Coffee with Karim
How To Start Investing in RE
Est. read time: 5 minutes
A lot of people want to start investing, but they get stuck because it feels too big or too expensive. The truth is, most investors in Ottawa start small. One property. One tenant. One step.
And a lot of them don’t even own a home yet when they start.
Here’s the simplest way to break into the market without overwhelming yourself.
1. Start Small and Keep It Simple
You don’t need a duplex or a big multi-unit building to be an investor. Most new investors start by buying a home they can live in and rent part of out.
A few easy Ottawa examples:
Basement Suite House Hack
Kanata, Barrhaven, Orleans, Half Moon Bay
Live upstairs.
Rent the basement.
Your tenant pays a big chunk of your mortgage.
Older Homes With Secondary Units
Hintonburg, Carlington, Vanier, Overbrook
Lots of these already have basement apartments or can be converted pretty easily.
Townhome With an In-Law Suite
Orleans, Riverside South, Stittsville
Not a full duplex, but you still get rental income and easier upkeep.
You’re not trying to buy your “forever home” here, you’re trying to get your foot in the investing door.
2. Use the 5% Down Rule (Most People Don’t Know This)
You can buy with 5% down if you live in the property.
That’s the game-changer.
Example:
A $600,000 place with a basement you can rent out might only need around $35K–$40K down, instead of the $120K you’d need for a pure investment property.
This is why house-hacking is so popular.
It’s affordable, it’s practical, and it builds equity fast.
3. What You Actually Need to Qualify
The basics:
Income:
A normal job with a predictable income is usually enough.
Credit Score:
Aim for 680+. Not perfect? Still workable.
Debts:
Your car loan, credit cards, and lines of credit all matter here.
Rent:
If you’re renting the basement, the lender might use some or all of that income to help you qualify.
Huge help for first-timers.
That’s usually all you need to get a clear picture.
4. Build a Simple Support Team
A few key people:
Mortgage broker:
Tells you exactly what you can buy and how to structure it.
Realtor who knows investing:
Helps you understand rents, red flags, neighbourhoods, and what a fair price looks like.
Lawyer:
Handles the closing and keeps things clean.
Contractor or handy friend:
Something will eventually break – plan for it.
That’s it.
This small group makes your first investment way less stressful.
5. Your First-Time Investor Roadmap
Here’s the path almost every new investor in Ottawa follows:
Get a pre-approval
Takes 30–60 minutes. Completely changes what’s real and what’s not.
Pick your strategy
House hack? Duplex? In-law suite townhome?
Tour homes
You’ll learn more in three showings than three weeks of Googling.
Run basic numbers
Rent minus expenses minus mortgage.
You’re looking for “manageable,” not “perfect.”
Make an offer with conditions
Inspection + financing gives you time to think and breathe.
Close + get your tenant
Congrats; you’re officially a landlord.
Repeat when it makes sense
You’ll know when you’re ready.
6. Real Ottawa Example
A couple I worked with a couple of years ago — both in their early 30s — were renting in Vanier and wanted to invest early.
They bought a small detached home in Vanier with a finished basement in-law suite.
Price: ~$540K
Down: ~$60K
Basement rent: $1,700/month
Their cost of living dropped, they built equity right away, and they’re already saving for their second property.
Nothing fancy; just a smart first step.
That's All!
You don’t need to be wealthy, experienced, or already own a home to start investing in Ottawa. You just need a realistic first move — usually something you can live in and rent out. Once you get that first property, everything becomes clearer and less intimidating. If you ever want to walk through some real examples or look at what’s available, I’m always happy to break it down with you.
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