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Updated almost 5 years ago on . Most recent reply

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24
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2
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Kim Wu
2
Votes |
24
Posts

Does BRRR method works in Hamilton?

Kim Wu
Posted

I am quite new to the BRRR method.

I watched a couple of videos on Youtube and understand the 'general' idea of how it works.

However, I am struggling to apply it in the real world.

So I am looking to buy my first investment property in Hamilton.

Please correct me if I am wrong, here is what I understand so far

1. Renovate / Refinancing

"The property needs to be cheap enough so that after renovation, I can refinance it at a much higher price" - Maybe I am searching the wrong way on MLS, but most properties in Hamilton is around +/-$550K (the ones close to McMaster). Here is an example;https://bit.ly/2wrXYTD

And this property doesn't seem that bad. So even if I purchase and renovate it, I am not sure if I can bring much value to bump the price up for refinancing? There is another property not far from this one, sold 612k just a few weeks ago and that one seems to be more furnished. 

2. Rental

Then here comes to the rental. Using the '1% rule', this means the rental needs to be $5500 for me to be cash-flow positive. I am not sure how this unit can rent out for anywhere close to $5500. I checked and it seems like the rent in the area is around $2200 at max.

Any advice would be much appreciated. Thank you!

Most Popular Reply

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18
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14
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Melissa Vass Scott
  • Real Estate Agent
  • Hamilton Ontario, Canada
14
Votes |
18
Posts
Melissa Vass Scott
  • Real Estate Agent
  • Hamilton Ontario, Canada
Replied

I agree to what James said.  I’m a long time investor and there are always properties coming up.  As a real estate agent I pay close attention to DOM and listings that have been cancelled.  Quite often a property will have a stigma attached to it for no reason, just length of time on market.

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