I'm curious to the results here as well. I like the BRRRR method immensely, would like to see some examples in Ottawa.
Hi Mahmoud, I have done it on the Quebec side (Gatineau) but I used private money. The banks are getting tighter on lending so I would make sure that you will be able to get approved for you desired refi amount before jumping into a hard money loan.
Also, I've been hearing of people having more luck with financing through credit unions. I haven't needed to do that yet, but lending through the big banks has been getting harder for myself.
Hope this helps!
I am also interested in Ottawa. Would like to connect:)
I've done a similar strategy to the BRRRR but instead of refi, I used a HELOC, then used that to help with the next property. I could have gone with Refi but for my situation and needs for the money, HELOC was a better option.
I have also used hard money for a flip in Ottawa but I stay with more traditional financing now.
Originally posted by @Mahmoud Tellou :
Hi Matt! Your answer opened up many interesting points.
1. I assume you invested out of your province of residence. How does that work? Are there any restrictions? Additional tax implications? Etc.
2. Did you use private money for both the acquisition and the refi?
3. Can you share the numbers of the deal? How did you find it?
1. I am investing outside my providence of residence but I grew up here and my family is still here, so I have some boots on the ground people in the region. No restrictions besides the flights over once in a while. No additional tax implications that I know of.
2. I just used private money for the initial purchase and then got a mortgage from a bank
3. My last deal I bought for $157,500 and put ~$16,000 of my own money into the rehab and it appraised $232k after repairs. I could have taken 80% of the $232k but only took $180k from the bank. The property is rented for $1300/mo and I am cashflow positive. I essentially have infinity cash of cash return because I got all of my money back from the refi.
Now, this was a great deal and I am having trouble finding similar ones but they are out there! I just purchased one for $165k and just started the rehab on it. I'm hoping it'll appraise around $220k after ~$15k-$20k rehab.