Reverse BRRRR for the Win!

[Stephanie Beaulac]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Ottawa.

Purchase price: $262,500
Cash invested: $56,500

We started our real estate journey 6 ½ years ago with a Reverse BRRRR House Hack without even knowing that's what we were doing. We recently moved out of that house hack and have that property fully rented. This made me have another look at our numbers and was blown away!

We put in $56.5k (down payment + closing costs + rehab) and ALOT of sweat equity. It generates on average $1,100/month in cashflow ($788 if you take out savings for cap. ex., vacancy, etc. – which you should). It enabled us to put a $40k down payment on our third cash-flowing property and as of today we have $195k in equity in the property. Now it’s time to invest that equity in another property to complete the #brrrr. #feelslikeistoleit

What made you interested in investing in this type of deal?

This house had a separate side entrance which would be easy to separate a basement and mainfloor unit. That was pretty much all. I bought this place and rented out the other rooms while building this secondary dwelling in the basement.

How did you find this deal and how did you negotiate it?

I found this property on the MLS. It's in a neighborhood which is adjacent to a good neighborhood so it didn't receive much attention.

How did you finance this deal?

I only put 6% down with mortgage insurance

How did you add value to the deal?

I added value to this property by completely renovating it from head to toe and adding a separate secondary dwelling.

What was the outcome?

$788 in net cashflow per month!

Lessons learned? Challenges?

This was my first deal. I learnt the power of real estate. I learnt it's not so easy to create a full secondary dwelling. I learnt what my passion is.