Why Investors Are Leaving Ontario for Florida (14% Cap Rates, 30-Day Evictions)

Ontario investors are moving money to landlord-friendly U.S. states. On my podcast, cross-border lawyer Lauren Cohen described Florida co-living deals with net cap rates of roughly 14 to 18 percent, evictions in about 30 days, no land transfer tax, and no state income tax, versus a roughly 5 percent cap and long tenant processes in Toronto. These are figures she shared on the show, not investment advice.

Last updated: July 2026

I list a lot of homes for people who are leaving Canada, and I have written separately about the how-to-move side of that. But there is a second story underneath it, and it is purely about the numbers. A growing number of Ontario landlords are not just frustrated. They are taking their capital and rebuilding their portfolios in the United States. When Lauren Cohen walked me through why on Supply and Demand, I understood the pull.

14% to 18%

Net cap rates Lauren cited on Florida co-living deals

~5%

A typical Toronto rental cap rate, for comparison

30 days

Roughly how fast an eviction can move in Florida

The number that made my eyebrows hit my hairline

Lauren refers the actual property deals to a developer rather than selling them herself, so I am passing along what she shared, not a pro forma. But the figure stopped me on the recording.

“Your cap rates, for example, in this investment are 14 percent. And they can go up and even higher.”

For context, a cap rate is simply your net operating income divided by what you paid, after expenses. Higher is better. In Toronto, you are lucky to get a 5 cap on a rental right now. So a 14 to 18 percent net cap rate is not a small edge. It is a different asset class. The question I had was obvious: why is the gap that big?

It is the rules, not just the price

The prices are lower in much of the U.S., yes. But Lauren was clear that a huge part of the difference is regulatory. In landlord-friendly red states, you carry far less risk on the tenant side, and that risk is exactly what has made being a landlord in Ontario so painful.

“It’s like night and day. Florida and most of the states where my clients are investing are red states, and they’re all very landlord friendly.”

The Ontario landlord’s reality

Evictions can drag on for months
Rules skew heavily toward the tenant
Land transfer tax on the way in
Screening is so strict that good tenants get stuck too

The Florida investor’s reality

Evictions on the order of 30 days
Landlord-friendly rules in most target states
No land transfer tax, no state income tax
Lower prices plus higher rents equals higher cap rates

There is a knock-on effect worth naming. Because a Florida landlord takes less regulatory risk on a tenancy, they do not have to demand a near-perfect tenant profile the way Ontario landlords now do. Less risk on the downside means more flexibility on who you can rent to, and the numbers still work.

The model Lauren likes: co-living

Her favourite structure is co-living, and it is a big reason the cap rates run high.

Start with a single-family home

Take a regular house and reconfigure it so each room has its own bathroom, essentially a higher-end version of student housing.

Rent by the room, mid-term

Not short-term like Airbnb, not a single long lease. Rooms go to travel nurses, blue-collar workers, and grad students on mid-term stays.

Run it on a membership model

Through a platform like PadSplit, tenants join as members and agree to house rules, so a member who breaks them can be removed quickly.

Multiply several rooms of rent under one roof, keep vacancy low with mid-term demand, and add fast enforcement, and you can see where a 14-plus cap comes from. Lauren also likes that it produces more affordable housing rather than less.

You cannot just buy a condo and coast

One important caveat Lauren kept returning to. If your only goal is returns, fine. But passive real estate on its own is not a business, and it will not get you U.S. immigration status.

“You can’t just invest in real estate unless you build a business around it. You have to hire people. You have to build a business. You can’t just have a stagnant, passive business.”

So the co-living approach does double duty: it is a managed, active operation, which is what qualifies for a visa like the E2, and it is also simply a more productive way to own the asset. If the immigration side is what you are after, I wrote a separate piece on how Canadians move to the U.S. with real estate, and the strategy-first approach that goes with it.

The costs nobody puts on the brochure

It is not all upside, and Lauren did not pretend otherwise. Insurance is real, especially with hurricane exposure. Car and home premiums run higher. And there is the currency hit when you convert.

“Once it’s done, you rip off the bandaid, and now you’re making money in U.S. dollars.”

Her argument is that once your income is in U.S. dollars, with no state income tax and lower housing costs, the pieces net out over time. Here is the honest side-by-side for a Canadian weighing it.

Factor	Toronto / Ontario	Florida (per Lauren)
Typical net cap rate	Around 5%	14% to 18% on co-living deals
Eviction timeline	Often months	About 30 days
Land transfer tax	Yes, significant	None
State or provincial income tax	Yes	No state income tax
Insurance	Lower	Higher, hurricane exposure
Currency	Earn in CAD	One-time conversion hit, then earn in USD

A word on the numbers

The cap rates and figures above are what Lauren shared on the podcast, tied to specific developer deals. They are not a guarantee, not a forecast, and not investment advice. Cross-border real estate carries tax, legal, and currency complexity. Speak with a qualified cross-border accountant, a real estate professional in the target market, and an immigration lawyer before you act.

Frequently Asked Questions

Why are cap rates higher in Florida than in Toronto?

Lauren pointed to landlord-friendly rules in states like Florida, lower purchase prices, and no land transfer tax. She cited net cap rates of roughly 14 to 18 percent on the co-living deals she refers clients to, versus closer to 5 percent in Toronto. Those are figures she shared on the show, not a guarantee, and every deal is different.

What is a cap rate in real estate?

A capitalization rate is your net operating income divided by the purchase price, after operating expenses. The higher the cap rate, the more income the property produces relative to what you paid. A Toronto rental might land near a 5 percent cap, while Lauren cited 14 to 18 percent on certain Florida co-living deals. Cap rate is one metric, not the whole picture.

What is the co-living or PadSplit model?

Co-living takes a single-family home and rents it out by the room, each with its own bathroom, on a mid-term basis to workers, travel nurses, and grad students, often through a membership platform like PadSplit. Because tenants join as members, the operator can enforce house rules quickly. Lauren likes it because it also creates more affordable housing.

Can a Canadian buy investment real estate in the U.S.?

Yes, Canadians can own U.S. investment property. But if the goal is also U.S. immigration status, Lauren was clear that passive real estate alone does not qualify. You have to build an active, job-creating business around the real estate. Buying property and getting a visa are two separate questions.

What are the downsides of investing in Florida real estate?

Higher insurance costs given hurricane risk, higher car and home premiums, and the currency hit when you convert Canadian dollars. Lauren’s argument is that no state income tax, no land transfer tax, lower prices, and income earned in U.S. dollars offset those costs over time. Price it for your own situation.

Watch the Full Episode

This is from my conversation with Lauren Cohen on Supply and Demand. If you invest in Ontario and the numbers here surprised you, the full episode is worth a listen. Find it on Apple Podcasts or Spotify, or watch below:

Apple Podcasts
Spotify
YouTube

Why Investors Are Leaving Ontario for Florida (14% Cap Rates, 30-Day Evictions)