What's considered a BRRRR success in Canada?

[Michael Hopkins]

Question regarding the Perfect BRRRR Deal. Just going through the ARV/FMV research. Of course the perfect BRRRR deal is to recoup all your money invested. Down payment + rehab costs + holding, etc. In the market I'm looking the numbers don't quite follow those guidelines. What if you only recoup your rehab costs? Both units in duplex are cash flow+ after all expenses. But you're still only in for your 20% down payment, closing/holding costs, refi costs, etc. Is that considered a win?

I'm looking at a SF and performing a MF conversion. Listed at 400K. Most likely go for 450K in our current hold offers/multiple bids world. Say 90-100k rehab costs. Should be able to refi to reach an ARV of 550K. Both units would be cash flowing $184/unit/mo. After all expenses including, capex 5%, property management 8%, maintenance 5%, taxes, insurance, utilities, etc. I estimated most costs, rent, etc. on the low end. My calculations say a CAP rate of 4.8% and COC of only 2%.

Would this be considered a good deal in Canada? Is anyone here doing deals with these kind of numbers? Would love some feedback. Viewing the property Saturday and they’re holding offers till Tuesday.

Thanks! :)

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@Michael Hopkins

My target is 100% investment returned at mortgage renewal. I don’t see a ton of advantages in buying all cash up here as I’ve always been able to refinance even as early as 9 months in. Variable rate keeps penalties low low low (3 months interest) and usually if you refi with be be same lender they’ll cover that if you ask and press a little. I target 2 or 3 year terms, 25-30 yr amm, and have been able to complete this each time without much hassle.