Renovating and then Refinancing (Canada)

[Dylan Bergum]

Hi everyone,

I am new to the real estate game so I have some  questions.

I am going to be purchasing my first live-in property this coming year and am considering one of the below two options:

Option A) Taking out a large mortgage for a nice duplex house with a legal basement unit that will help pay the mortgage; or

Option B) Taking out a small mortgage on a fixer-upper house, and putting in 30k worth of reno's and then refinancing afterwards.  After refinancing I would then use that extra $ to put a down payment on a modest investment/rental property.

Any opinions on what the better strategy would be are welcome as well.

However my main question is in regards to refinancing. I am somewhat familiar with the BRRRR startegy but just want to clarify.

Question: After I put 30k worth of reno's into my live-in property, I then simply get it re-appraised by the bank and then can pull out that value-add in cash to purchase my investment property?  Is this how it would work? Or what would be the best method to go about this?  

Please note that I am in Canada (Ontario).

Thank you!