ACTIVE
SOLD
Price
Filters

Strategy · Income or growth · October 2026

Income now, or a bigger engine later

What C$600,000 in Northern BC rental houses can do over 20 years: if you stop buying at Year 10 and let the portfolio sit, and if you spend the cash flow instead of reinvesting it.

C$7.36MConservative flywheel at Year 20, reinvesting, before tax
C$31kIncome in Year 1 if you spend the cash flow, growing to C$91–148k by Year 20
C$2.32MA 7% stock index fund at Year 20, for comparison
Find my “enough” number → How the flywheel works

Then let it sit

Stop buying at Year 10, hold to Year 20

The portfolios from the flywheel model, but after Year 10 nothing is bought or refinanced. Loans keep amortizing, rents and costs keep rising, values keep growing at 3.5%, and the cash flow banks at 4.5%. Then everything is sold at Year 20.

StrategyY10 net worthY20 net worthMultiple of C$600k20-yr IRRY20 LTVY20 DSCRY20 cash flow
Buy-and-holdC$2.02MC$4.69M7.8×10.8%20.3%2.05×C$91k
Conservative flywheel (75%)C$2.43MC$7.36M12.3×13.4%34.2%1.73×C$175k
Aggressive flywheel (80%)C$2.68MC$9.76M16.3×15.0%41.9%1.55×C$232k
Ungoverned 80%C$2.80MC$11.54M19.2×15.9%43.2%1.50×C$278k
Stock index fund (7%)C$1.18MC$2.32M3.9×7.0%–––
60/40 balancedC$0.93MC$1.45M2.4×4.5%–––

Net worth after 3.3% sale costs, before income and capital gains tax. Selling everything in one year would trigger a large tax bill, so most investors would sell gradually or hold for income instead.

Time multiplies the lead

The conservative flywheel’s C$0.4M lead over buy-and-hold at Year 10 becomes about C$2.7M by Year 20, with no new purchases. The larger portfolio simply compounds for longer.

The portfolio de-risks itself

By Year 20, LTV has fallen to 34–42% and coverage has risen to 1.55–1.73×. The conservative portfolio pays about C$175k a year before tax, close to twice buy-and-hold.

Bad decades still pay, slowly

Even in the Severe case, the governed portfolios reach about C$1.5–1.7M by Year 20 (2.6–2.8×). That trails a 7% index fund (C$2.32M), which is shown without market drops.

Or take the income

Spend the cash flow, recycle only the equity

The 20-year figures above assume surplus cash flow is reinvested. Many investors would rather live on it. Here the same portfolios pay out all cash flow above the reserve every year, and only refinance proceeds from paydown and appreciation buy new houses. Bought and refinanced through Year 10, then held to Year 20.

Income versionIncome Y1Income Y10Income Y20Paid out over 20 yrsDoorsY10 net worthY20 net worth
Buy-and-holdC$31kC$56kC$91kC$1.18M6C$1.50MC$2.98M
Conservative flywheel (75%)C$31kC$60kC$106kC$1.29M8C$1.62MC$3.55M
Aggressive flywheel (80%)C$31kC$66kC$148kC$1.57M14C$1.81MC$5.05M

Income is pre-tax cash flow paid to the owner. Net worth is after 3.3% sale costs and excludes the income already paid out. Reinvesting everything instead ends Year 20 at C$4.69M, C$7.36M and C$9.76M.

Income from Year 1

About C$31k in the first year on C$600,000, rising with rents and doors to C$56–66k by Year 10 and C$91–148k by Year 20, before tax.

Equity alone can still grow the portfolio

With no cash flow reinvested, the aggressive version still grows from 6 doors to 14 on refinance proceeds alone, pays out C$1.57M over 20 years and ends at about C$5.05M. The conservative version adds only one house: its 75% gate leaves little to take out once cash flow is spent.

The price of spending it

Reinvesting everything for the first 10 years leaves the flywheels about 1.5 times better off at Year 20, even after adding back the C$1.3–1.6M the income versions paid out. The real choice is income now or a bigger engine later, and many clients blend the two: reinvest until the portfolio reaches their “enough” number, then switch to income.

Income isn’t guaranteed

In the Severe case, payouts fall to near zero for most of Years 2–9 in every version, and the reserve carries the portfolio. Income starts again as rates and vacancies normalize.

Same houses, same rules

What the numbers assume

  • The housesNewer houses with suites at C$565,000, renting for 0.9% of price a month (about C$5,085 in total), 3% vacancy and 35% operating costs, based on my own buildings’ statements. Year-1 cap rate about 6.8%.
  • The moneyC$600,000 to start. Every purchase at 80% LTV, debt at a 5.0% long-term planning rate over 30 years, values growing 3.5% a year, reserves earning 4.5%.
  • The flywheelsConservative: refinance to 75% at each 5-year renewal. Aggressive: refinance to 80% at each 3-year maturity. Both governed by coverage tests, with no break penalties.
  • The risksConcentration in energy towns, lender limits, illiquidity and tax all apply. See the stress tests and trade-offs.

Next step

Let’s find your “enough” number

The income you want, when you want it, and the capital you have. I’ll run it through the same model and show you the trade-off between income now and a bigger portfolio later.

Book a 30-minute call → Read the Fort St. John brief

Method, limits and disclosure

An annual simulation with per-loan tracking, monthly compounding and pre-tax, nominal CAD figures, run for 20 years with no purchases or refinances after Year 10. Net worth is after 3.3% sale costs and before income and capital gains tax. Income is pre-tax cash flow above the reserve requirement. The stock-index (7%) and 60/40 (4.5%) benchmarks are net of fees, before tax, and shown without market drops. Surplus cash and reserve yields follow the FP Canada 2026 Projection Assumption Guidelines.

Disclosure. I’m a licensed real estate advisor and earn a commission when clients buy or sell through me. Operating assumptions come from a small number of my own suited houses over recent years.

Illustrative, not a forecast, a financing approval or tax advice. For education and discussion only; not individualized financial, legal or tax advice. Past performance does not predict future results. Leverage magnifies losses as well as gains; cash flow can be negative and capital can be lost. Obtain independent advice.

Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.