Can you not buy the house in cash you're BRRRRing and do 20% down instead?

[Ernesto Miguel Credito]

Hi everyone. I am new to real estate investing and BRRRR.

I don't have much capital so I am wondering if it's still possible for a BRRRR strategy to work if I am doing a 20% downpayment on a house and have some cash left for renos?

Will appreciate any advice.

I'm in Canada by the way!

Thank you!

[Chris Barrett]

It actually doesn't matter if you are purchasing for cash or financing - it matters how much the purchase + reno will cost compared to the after repair value. Typically you want the B + R cost to be 75% or less of ARV. That allows you to get your reno money back out, and some cash as well on the refinance.