BRRRR in Canada - any different than in US?

4 Replies

@Jessica Vanderveen

The practice of buying an unloved property at a good price; forcing appreciation by updating the business (modernizing the property and increasing the net revenue); and refinancing the now more valuable property/business had been around a long-time before it received the BRRR acronym.

You can do this in Canada just as well as in the U.S.A.   There are no real differences outside of the regular discretions in finance, taxation and regulation between the two countries.  You will find that refinancing may actually be easier here in Canada as there are not the same wait periods you frequently encounter in the U.S.A.  ... we've refinanced properties in as little as 45-days after purchase.

 

@Jessica Vanderveen agreed w Roy. It's very doable. I've recycled savings from a teacher salary 8 times now. I don't buy cash though. Wasn't an option in my market. I use 2-3 year terms (25yr amm) and generally between cash flow, paydown, and forced appreciation I have all or nearly all my investment back. Rinse & repeat. Once you've got 4 or 5 you're basically refinancing something every year. Again, depending on market your mileage may vary. Right now in the west, appreciation is essentially forced only.

I do the same as mentioned above; my skills as a carpenter help with the appreciation. If you are a DIY'er don't bite off more than you can chew on the rehab portion; it is definitely not as easy as it looks.