From BC Prices to NB Cash Flow: My First Year Investing in Moncton

"The moment I saw the numbers, my investing thesis changed forever. In Vancouver and the Fraser Valley, my home area, securing a modest, older detached house means facing a benchmark price that often hovers around $1.2 million to $2 million. With local rents, that purchase translates to zero, or even negative cash flow. I was investing purely on the hope of appreciation. That's why when I saw Moncton, New Brunswick's average home price sitting below $400,000, I knew I had found the solution. I could buy three properties in the Maritimes for the price of one teardown in BC. This is the story of how I stopped hoping for appreciation and started buying for positive cash flow by trading my familiar BC streets for a corner lot nearly a whole country away."

🔎 The Research: Following the MoneySense Map

Like many Canadian real estate investors, I live by the annual pilgrimage to the MoneySense "Where to Buy Real Estate in Canada" list. It’s how I chose my previous investment cities, like London, ON, and even closer to home in Chilliwack, BC. But with prices exploding everywhere, the goal shifted from finding a good market to finding a cash-flowing market.

Moncton, NB, kept popping up, and a deeper dive confirmed the attraction:

• Affordability: The barrier to entry was low, which meant I could leverage my down payment for a much higher rate of return on invested capital.

• Strong Demand: Moncton is one of Canada's fastest-growing cities, thanks to its growing economy, bilingual workforce, and influx of interprovincial migrants seeking affordability. This population boom has kept the rental vacancy rate incredibly low (often under 2%), ensuring tenant stability.

• The Taxes: The only initial sticker shock was the higher property tax rate for non-owner-occupied homes in NB, but the lower purchase price still made the overall picture work.

Once the research was complete, I secured a pre-approval from a mortgage broker and was referred to a great local realtor—my core team was in place.

🏡 The Purchase: A 4,000 km Showing

Buying a home sight-unseen (by me, anyway) is a leap of faith. The logistics were a challenge, so my sister flew to Moncton. She spent one whirlwind trip seeing about a dozen homes in Moncton and Saint John, giving her a crash course in Atlantic Canadian real estate.

The winner was an old home on a nice corner lot. Older homes are where the real cash flow potential is, but they always come with deferred maintenance risk. That risk became very real after the inspection.

The Reality Check: Unexpected Capital Expenses

The inspection revealed the house had been lived in for a very long time and was due for some major life-safety and structural upgrades. The two biggest were a full electrical rewiring and drain tile replacement.

Combined, these critical repairs ate up $20,000 of my initial contingency budget before a single tenant moved in.

The first year was truly a "school of hard knocks":

• We had a broken washing machine that needed replacement.

• We had to purchase an extra fridge to accommodate the room rental strategy.

• There were countless small repairs that chipped away at the income.

My initial cash flow projections were thrown right out the window for the first twelve months as we poured money into making the old house safe and functional.

The Key to Cash Flow: Renting by the Room

The financial strategy that makes this whole venture work came from the rental manager my realtor referred us to. Instead of renting the entire home to one family for a set price, they suggested we rent the rooms separately.

This is the key to maximizing income, but it flips the expense model:

By absorbing the utility costs and paying higher management fees, the rent per room is higher, attracting working professionals and students, and generating a much higher total net operating income than a single-lease strategy ever could.

Looking Ahead: A Positive Second Year

It’s easy to get discouraged when you have to spend $20,000 on major fixes in your first year. But the essential truth remains: I own a cash-flowing asset in a rapidly growing city, something that was an absolute impossibility in my home province of BC.

Now that the major capital expenses (wiring and drain tile) are complete, the foundation for the long-term success of this Moncton investment is set. I am highly optimistic that with only routine maintenance, the second year will finally allow the property to hit the projected numbers to turn a small profit.

It’s a long game, but sometimes you have to look 4,000 kilometers away to find a real estate market where the fundamentals of income and affordability still work.

Are you also a long-distance investor, or has BC priced you out? I'd love to hear about your experience in the comments below!