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Updated over 1 year ago,
BRRRR Method in Canada
Hello,
My name is Max. I am a 21 year old living in Canada, more specifically Fredericton, NB and I am looking to get into my first property and thus the world of real estate. I am currently in a position where I do not have mountains of capital to spend on buying a house, so, I am hoping to use the BRRRR method to stretch what money I do have as much as possible. When listening to the bigger pockets podcast, I notice FHA loans being mentioned quite frequently because they give the customer the ability to purchase a house with a very small down payment (aka. very little of their own money). I believe that something like an FHA loan would be a great option for someone in my situation, however, sadly, in Canada FHA loans are not offered which brings me to my question. Can you use the BRRRR method in Canada without being able to utilize FHA loans? If so, what loans would be best/most similar to FHA loans (potentially a CMHC insured mortgage would be a good option)? And finally, outside of what I've already mentioned (CMHC loan), do you have any other/better recommendations to help someone, in the financial situation that I am in, get into their first property? And I do want to make it clear that, in keeping with the BRRRR method, my goal after buying and rehabbing my first property is to refinance in order to buy a second property as quickly as possible.
Thank-you for your time and I look forward to reading your responses.