08/21/2026
Every first-time landlord makes the same mental math mistake: rent minus mortgage equals profit. It's never that simple.
I just broke down a real property: 551 de la Montagne in downtown Montreal. A comparable unit sold at $485,000 earlier this year. Current rent: $2,100/month. Let's see where that money actually goes.
20% down ($97K), 30-year amortization at 4%. Monthly mortgage: $1,845. Property tax: $254. Condo fees: $442. Insurance: $50. All-in monthly cost: $2,591.
Subtract the $2,100 rent and your actual cash flow is negative $491/month. Not a typo. This property costs you money every single month before you've accounted for vacancy or repairs.
Now here's the honest context: about $560 of that mortgage payment is going toward principal, equity you're building, not losing. So the real picture is: you're paying $491 out of pocket to build $560 in equity, plus whatever the property appreciates.
But we haven't added what experienced landlords always budget for: one month's vacancy per year ($175/mo set aside), repairs reserve at 5–8% of rent ($105–$170/mo). Add those in and the real monthly picture is closer to -$800.
What rent would make this break even? $2,591/month, a 23% increase from today. That gap is what you're underwriting when you buy at this price.
Can this still make sense? Yes! if you understand it going in, if rent growth closes the gap over time, and if you account for the tax deductions on rental losses and expenses. But what doesn't make sense is buying a property assuming rent covers everything and finding out the hard way that it doesn't.
If you're thinking about becoming a landlord, run this math before you buy, not after. That's exactly what the 15-minute call is for. Bring the listing, I'll bring the real breakdown.
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LJ Aguinaga | LJ Realties | 18 Years | Landlord
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