Does anyone have any experience doing BRRRRs in Ottawa, ON?

[Mahmoud Tellou]

Hello! I was wondering if anyone on BP has experience doing BRRRRs in the Ottawa area. Where you able to find Hard Money Lenders? Are Canadian banks investor friendly when it comes to refinancing? Appreciate everyones input!

[Matt Belzile]

Originally posted by @Mahmoud Tellou:

@Matt Belzile

Hi Matt! Your answer opened up many interesting points.

1. I assume you invested out of your province of residence. How does that work? Are there any restrictions? Additional tax implications? Etc.

2. Did you use private money for both the acquisition and the refi?

3. Can you share the numbers of the deal? How did you find it?

Thanks!

1. I am investing outside my providence of residence but I grew up here and my family is still here, so I have some boots on the ground people in the region. No restrictions besides the flights over once in a while. No additional tax implications that I know of. 

2. I just used private money for the initial purchase and then got a mortgage from a bank

3. My last deal I bought for $157,500 and put ~$16,000 of my own money into the rehab and it appraised $232k after repairs. I could have taken 80% of the $232k but only took $180k from the bank. The property is rented for $1300/mo and I am cashflow positive. I essentially have infinity cash of cash return because I got all of my money back from the refi. 

Now, this was a great deal and I am having trouble finding similar ones but they are out there! I just purchased one for $165k and just started the rehab on it. I'm hoping it'll appraise around $220k after ~$15k-$20k rehab.