While I can't comment on the your expenses and boat plans, I do have something to offer on the question "Can I live off my rental property" I too am Canadian in a large city and I have been a landlord for 20 years. We have had all kinds of tenants over the years, but fortunately no Grow Ops, or complete trashing of the properties as some of my friends have experienced. That said on Monday next week we are having a new furnace installed in one property because of cracked heat exchangers, that's a $4k bill right there, and there is no option, you need to provide heat when you rent a property.
It has been my experience, no matter what the CRA says, renting
properties is not a passive income
. There are constant issues, repairs
and numerous other things that invariably come up, like police showing up to arrest a tenant's ex who wont take go away for an answer. We wont go away on vacation
without having a responsible person in charge available to the tenants to call when there is a problem. That saves a fortune in just avoiding emergency
call out of an electrician just because a tenant doesn't know/want/feel like they should check the breaker box. To go away for an extended period of time you will want a property manager or your profit will completely disappear over time. We finally found a reliable reasonably priced one and you can expect to pay 10% of collected rent while occupied, half a months rent for finding a tenant and getting it leased, and always allow for at least 5% vacancy when doing your calculations.
In short until the properties are or nearly paid off, I always described being a landlord as bigger numbers coming in and bigger numbers going out, with very little improvement to my monthly cash flow. We are in the process of over time converting the property investment into other forms of investments that will provide the same kind of return but will require less active involvement on our part to create the opportunity to take off for months at a time without the constant pull on time and money
that rental properties require.
I hope this helps you with your planning and calculations and I wish you the best in whatever you decide to do