The Rental Income Trap: Why $24K/Year Might Not Be Worth It

This is the North York / Scarborough first-time buyer dilemma I see constantly.

The math looks tempting:

• $1.35M with a legal basement renting for $2,000/month
• Or $900K, no tenants, no hassle

Here's what I walk through with clients:

The $1.35M rental property path:

• Your mortgage is higher, but rental income offsets ~$24K/year
• You're a landlord from day one (tenant issues, maintenance, LTB if things go wrong)
• That basement locks in cash flow for potentially 5+ years
• But: Can you qualify for the higher mortgage even WITH the rental income?

The $900K path:

• Lower mortgage, less stress, more flexibility
• Room to grow into the space (future kids, home office, aging parents)
• But: Are you stretching even at $900K?

What people miss: "Safe cash flow" from tenants isn't guaranteed.

Vacancy, repairs, professional tenants—these aren't just horror stories on Reddit.

They're real risks.

For a couple in their early 30s with no kids yet, I typically lean toward: What gives you the most breathing room for life changes?

Because in 3 years, your priorities might shift completely.

And you don't want to be stuck in a landlord situation you never really wanted.

Considering a rental property as your first home? Let's run the numbers together—with AND without the tenant income.

Got other questions? You can book a 15-minute clarity call — no pressure, no sales pitch.

Book your free 15 MIN. MEETING

Just clarity.

Talk soon,

Fred Camingal