Smart Steps to Buy Your First Rental Property

By Wayne Hillier, Real Estate Investing Masters

July 15, 2025 | Edmonton, AB

If you're a general contractor, tradesperson, or just naturally handy, and you haven’t bought your first home yet, you’re in the perfect position to become a real estate investor.

In this article, I’m breaking down the 3 smartest steps to buy your first rental property in a way that builds real wealth without needing joint venture partners, high-risk strategies, or massive amounts of capital.

This is a simplified version of what I teach inside the REI Masters Mentorship Program. And it’s exactly how many of our students get started, building a rental portfolio one strategic move at a time.

Step 1: Buy Your First Home — Intentionally

Instead of rushing out to buy your dream house, think strategically.

If you’re a first-time buyer, you can purchase a primary residence with as little as 5% down through CMHC-insured financing. That’s a huge advantage, especially if you're planning to renovate and increase the home’s value.

But here’s the key: buy a home that you intend to turn into a rental later. That means it must:

• Be located in a rental-friendly area

• Have cash flow potential

• Qualify for solid resale or refinance value after improvements

Buying with this future use in mind will ensure your plan works long-term, not just in theory.

Step 2: Use Your Skills to Renovate and Add Value

As a general contractor or handy investor, this is where you shine.

Let’s say you buy a house for $300,000, invest $20,000 into materials, and do the work yourself. If the home is worth $400,000 after renovations, you’ve just created $80,000 in equity, tax-free, because it’s your principal residence.

That’s a huge win, and it’s only possible because you:

• Bought right

• Renovated smart

• Stayed within budget

Make sure you're not over-improving. You’re renovating for rental durability and resale value, not HGTV.

Step 3: Refinance or Sell — Then Repeat

After 5 years (when your fixed-rate mortgage term ends), you’ll likely be sitting on a lot of equity.

Here’s what you can do:

• Refinance the home based on the new value

• Pull out your original down payment and renovation costs

• Use the proceeds to buy your next property

You can then keep the first house as a rental, assuming it cash flows and meets investment fundamentals. If it doesn’t, sell it, take the profits, and move on to the next.

Either way, you’re no longer just a homeowner, you’re now an investor, and you’re growing.

Summary

You don’t need 100 doors or over-complicated risky strategies.

For 95% of investors, buying, renovating, refinancing, and repeating is enough to build long-term wealth, especially if you start young, stay focused, and leverage your existing skills.

This is exactly how many of our REI Masters students got their start and it works. One property turns into two. Two turns into three. And just like that, you’ve got a million dollar net worth built on strong fundamentals.

Listen to Today’s Episode:

Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier

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Wayne Hillier - Alberta Real Estate Investing Expert

About the Author

Wayne Hillier is one of Canada’s trusted experts in real estate investing education, specializing in Alberta’s thriving markets. Based in Edmonton, Wayne has over a decade of experience building a high-performing rental portfolio and coaching investors to achieve strong cash flow, sustainable wealth, and creative financing success. As co-founder of Real Estate Investing Masters, Wayne is a respected real estate investing coach and mentor, dedicated to helping Canadian investors confidently scale their portfolios. He is also the host of The Real Estate Investing Morning Show, Canada’s #1 daily podcast for real estate investing education.