First Time BRRRR vs Home at AVR and Rental Unit

[Robert Comeau]

Hello fellow Canadians ! , 

Very new , this looks like a great community to be a part of , and learn as first time investors. 

My girlfriend and I have been looking at homes for the last month , but have only been getting our agent to show us homes that had an in-law suite , or the possibility to add one , or a rental unit .

While doing research on CMHC fees ,  zoning and just trying to gain general knowledge of what we would be getting into , I stumbled across a You-Tuber (Matt Mckeever) , who very much had great things to say about this site , as well as the BRRRR Method .

In my situation I've never really had anything to invest but I have managed to come up with 20 k that I was going to use as a down payment on a 250 k home in our area ( this would be the home we rented the basement out in)  .

I am wondering if I am missing an opportunity here, this will most likely be the only time I will have a sizable amount of money to invest if I just buy this house , and from what I am reading about this method I would need a good chunk of my own money to start my first BRRR and I should be buying the worst house in the best neighbourhood , not a home at AVR already .

Any help is appreciated ! 

[Jacob G.]

HEY from TRURO, NS here too ;)

Totally agree with Jeremy's comment. 

Also, you can use home equity line of credit (Heloc) or Homeline plan. 

This is a good alternative if you don't want to pull out equity on the home's after repair value. This will keep your mortgage payments the same. However, Heloc or homeline plan comes with interest which is around 4 percent give or take. If you do the math right, this is another zero out of pocket down payment for your next home. You just have to make sure the cashflow can also pay that line of credit on a certain term. Some banks or lenders can offer payments like a mortgage for that loan,, or you can manually strategically pay it yourself.

My 2 cents too..