There are a few ways that I am aware of through which you can start your journey in real estate.
Buy a primary residence: Advantage is that you may be able to take advantage of a first time home buyer incentive to help with your initial down payment. I have found that down payment can be a major barrier to entry. However, some provinces have funding programs that assist first time home buyers with a portion of their down payment (e.g. Saskatchewan)
– Buy a home that has potential for income generation while you live in it. For instance, a house with a secondary suite separate from the main unit. You can live in one of the units and rent out the second unit.
– Buy a single unit, live in it, and rent out rooms within the house.
Buy a rental property: This requires that you save up, and provide anywhere from 20% to the full cost of the house. Important thing is to ensure that it cashflows (that is, there is some money left after all expenses has been paid.). Not a get rich quick strategy, this approach is for long term wealth creation.
– Buy rentals in very low-income neighborhoods, sometimes referred to as the D-level neighborhoods. The cost of the houses in these neighborhoods are typically lower and in Regina, SK can be as low as $40,000
– Buy in C- Level neighborhoods. Less crusty than D –level neighborhoods, but may carry similar risks. Prices may start at $90,000
– Buy student housing. Single unit shared by multiple students paying per room. This will typically cash flow well depending on the cost of the property
– Buy multifamily properties.
Flip Houses: Quite simply, this requires that you buy, repair and sell the property within a relatively short time. Like the rental this approach requires that you save up, and provide anywhere from 20% to the full cost of the house. A flip property will typically need some repairs and updates. A successful flip will typically yield a significant profit when you sell. This is usually treated as a get rich quick strategy.
How did I start, you ask, I bought my primary residence in 2015, saved up and bought my first rental in 2018. Then I sold my first house, used the equity to buy another primary residence, and second rental.
There is really no hard and fast rule to how you go about it, just ensure that you define your goals from the onset and choose an approach that fits your circumstances.