Indian-Origin Man In Canada Makes Rs 9 Lakh A Month By Renting Out Property
Karun Vij, a 33-year-old Indian-origin businessman, has achieved financial success by turning his dream of property ownership into a lucrative venture. Vij, currently residing in Chicago with his wife and daughter, owns four properties in Canada, which comprise 28 rooms.
His approach
His unique approach involves renting out individual rooms rather than entire houses, a strategy he discovered while studying engineering in Canada. Observing the profitability of renting rooms to students, he decided to pursue this avenue.
Starting in 2016, he gradually expanded his property portfolio, leveraging his rental earnings and salary growth while working in the United States. Vij's monthly income from rent now exceeds ?9 lakh.?
However, Vij did not plan to be a landlord full-time. According to CNBC, after graduating, he worked as an application engineer and later as an account manager at a company in the United States. As his rental earnings and salary increased, he could buy more properties in southern Ontario.
Today, Vij earns just over $183,000 and owns four Canadian rental properties worth a total of about $2.3 million. "When I bought my first property, it was the most exciting and nerve-wracking time of my life," he said, adding, "I had no idea what it would take to be a landlord, but I knew in my mind this was my business."
Vij said he has no intention of ever selling his property. "I don't care what the price is because I'm never going to sell; that's my mentality," he said. "I want to own as many assets as possible that generate cash flow and use any extra cash to buy more assets," he added.
The struggles
Being a landlord has presented Vij with a set of challenges, particularly dealing with various tenant requests. Initially surprised by the volume of calls, from fixing locks to changing light bulbs, Vij had to learn to prioritise major concerns and effectively manage communication. He emphasised the importance of good communication and follow-through in maintaining positive tenant relations.
"If you say you're going to fix something in five days, get it done in five days," he said.?
While he broke even on his rental properties this year, Vij doesn't mind not turning a profit yet, recognising the upfront costs for renovations in the initial years of ownership for recently purchased properties.
"I absolutely love debt," Vij said. "But I'll say I only like good debt," such as mortgages and lines of credit, he added. "Good debt is debt that you have a strategy for. My long-term strategy is to buy up as much real estate as possible," he said.
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