BARRR strategy clarification

[Jeffrey Eugen]

Hello. In coming months I am taking possession of a triplex with the intent to use the BRRRR strategy. 2 of the 3 units will undergo kitchen and bathroom renovations. Approx $20,000 will be spent.

Now I am hearing about this BARRRR strategy — which if I understand clearly — basically means that as long as I start to advertise and have potential tenants come to look at the units once we are to begin the reno, I will be able to write off all the reno work?

This is truly amazing — I’m just hoping someone here has done this and can vouch that this is valid in the eyes of the tax man. Even better, if there is an accountant on BP that can clarify this to being a legit strategy that won’t haunt me if the IRS (CRA in Canada) come a knockin.

Any assistance or knowledge here is appreciated. Thanks.

Jeffrey