Investing in US real estate as a PR

[AkkiV]

Hello everyone,

As a Permanent Resident of Canada, I am looking to partner with a US based friend to make a real-estate investment in the US (basically buying a property and putting it on rent).
Could someone please let me know if there is something in particular I should be concerned about going forward with the investment? e.g. not being a Canadian citizen while making the investment, forming an LLP vs LLC, double taxation in Canada and US, any other complications on getting the monthly rents and the eventual sale amount of the property back to Canada?

Any guidance would be highly appreciated.

Regards,
Akki

 

[jmbell]

Do not use an LLC. The tax effects in Canada for an LLC mean you will likely be double taxed as Canada treats it as a corporation, not a flow through. An LLP should be ok.

 

[ChristineHermer]

I was also a bit unsure about all the details. A few things stood out during the process. First, forming an LLC can often be simpler than an LLP for cross-border investments. The LLC structure usually offers better protection and is easier to manage, especially if you’re looking to avoid double taxation. As a Permanent Resident of Canada, I found the tax treaty between Canada and the U.S. really helpful in avoiding being taxed twice. Make sure to speak with a tax advisor familiar with cross-border investments.

Something else to consider is how you'll manage the property. Having good property management in place is crucial, especially if you're living abroad. I had a positive experience with property management in Montreal that made things run smoothly without me being physically present. They really kept things organized and took a load off my mind. You might want to look for something similar in the U.S., as it can make handling monthly rents and eventual sales a lot less stressful.

 

[Andreas Munzer]

You're absolutely on point about the long-term potential in South Florida real estate. Supply is finite, especially near the water, and as more people chase lifestyle and climate appeal, vertical growth is inevitable. That said, I agree we’re likely heading into a 1–3 year economic reset—inventory is climbing, days on market are stretching, and price reductions are becoming the norm. It's not 2008, but the froth is definitely thinning. That’s why I’ve been watching listings like this one https://realmo.com/listing/9258324 It’s a 2-bed, 2-bath in Fort Lauderdale that reflects the current softening, priced under $400K with a solid layout and upgrades already done. If this market adjusts further, places like that could offer real value, especially compared to the peak frenzy of the last few years. And if you’re thinking 10-year horizon, you're likely right, South Florida’s lifestyle draw and lack of buildable land point toward a continued upward trend once this correction finishes playing out. Right now might be the time to prep, research, and pounce when the dip levels off.

Yeah, you nailed it on the timeline - that 1-3 year window feels about right for things to shake out. I've been seeing the same pattern with inventory sitting longer and more price cuts, but like you said, it's more of a market cooling off than a full crash scenario. That Fort Lauderdale property you linked actually looks pretty solid for under 400K, especially if someone's playing the long game. The upgrades being done already is clutch because you're not dealing with renovation headaches right out the gate. I'm definitely in that camp of thinking this dip is more opportunity than crisis, especially for anyone who can sit tight for 5-10 years. The fundamentals haven't changed, people still want to live where it's warm and near water, and they're not making any more beachfront property last I checked. Sounds like we're both watching for that sweet spot where the market finds its floor and the panic sellers are done dumping their keys.