Welcome to passive real estate investing, the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli's.

Hello, my friends, and welcome to another episode of Ask Marco,

where I answer your investing related questions.

This week we have an interesting question, one that I get asked quite often and my team gets asked

this question quite often and I think it's a good one to address because it's important but I don't want people to misunderstand it and

it's really the RV or rent to value ratio and so the question this week comes

from Prattick I hope I'm pronouncing that correctly.

Pratic says, hi, I just started listening to your podcast. I am really learning a lot of things about real estate investment.

You mentioned the rent to value ratio in your

podcast. You said start with 0.7 to 1% ideally, but I am living in Montreal and I

don't see the rent to value ratio anywhere around that.

What I found realistically in Montreal is around 0.5%.

How does the people who invest in real estate in Montreal make a profit and monthly cash flow

because all you will get from monthly rent is almost the same as your mortgage installment?

I'm really sorry if this is a stupid question.

I am new to this thanks in advance.

First of all let me just say that this is not a stupid question. It's a great question and

often there are no stupid questions because if you think you have a stupid question

chances are someone else has the same question as you and they're wondering the same

thing and at one point in time we didn't know the answer to all the questions that are out there so

we learn as we go and if you don't ask you you're not going to get the answer so

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