BRRR Strategy In Canada - How does it work?

[Zack Tremere]

Hey guys.

I have been listening to the podcast for awhile now and alot of the investors who speak about the BRRR strategy find private or hard money and buy the property, reno, and refinance at the new appraised value....
Unfortunately in my market (Hamilton, Ontario) the deals I am looking at cost at least $350k and the numbers just do not work on that sized loan at 5%-7%.
I was wondering how are Canadian investors utilizing this strategy?

Really appreciate the responses!

[Elizabeth Milder]

Hi! I’m an investor in Victoria BC. My partner and I have used this method of investing multiple times over. We now hold 11 doors. Like Sarah mentioned, we too follow the house conversion regulations to convert single family homes to multi unit rentals (2-4 plex). I’ll use numbers on our last project as an example.

Completed Jan 2018. Purchased for $680,000 November 2016. Reno cost of $415,000. The renovation was major - we completely gutted the interior & dug down the basement to add another suite. The property was completely rented by Feb 2018: two 1BR -$1500/month each, main floor 2BR -$2000/month, garden suite 2BR - $1800/month. The property cash flows & appraised at $1,350,000 - allowing us to pull out about 50% of our capital investment.