Updated almost 9 years ago on . Most recent reply
New Member from Toronto, Ontario and learning about BRRRR!
Hello BP Community! I'm Florence, and moved from the most expensive market in Canada (Vancouver) to the second priciest one here in Toronto three years ago :)
I purchased and sold condos and learned a lot from family who did the same, and am comfortable with tenant selection and management although we rent to yuppie A+ tenants or students which makes it much easier.
I am contemplating stepping out of my comfort zone as I consider next steps. I have a 2-bedroom condo in downtown Toronto and was inadvertently house hacking before I learned about the term by renting out a room, and fortunately seen significant appreciation after minor upgrades and general lift from the market.
I'm debating between refinancing my property to purchase a second condo either to move into or rent out (20% down up to $500k), or selling my current home and attempting to find a townhouse or house with an income component such as a basement to continue building equity. I love the idea of multifamily housing, but with work demands, lack of handiness, and units going for well over $1M, I would look to partner with investors and and learn along the way.
It feels a bit risky as I am a single income earner in a hot market that may be cooling off after the government's latest mortgage changes, so I will continue to read here and look forward to learning from all of you fabulous and friendly folks!
Most Popular Reply
If you suspect that prices may fall and you need security, I would not go upgrading to a more valuable property. If you suspect a dip in the market and you want security, then stick to cash-flow properties. If the house value drops the rents will stay the same you'll just carry on flowing cash.
And yes, as Rosston says, BRRRR is a great way to start building cash flowing properties. I'd be cautious about it if you lack both time and handiness. Perhaps a JV with a trustworthy person who has time and handiness would make sense. You source the property and front the cash, they renovate, you manage tenants and they keep up the property maintenance. Get it stable and refinance it to start another one.