Looking to purchase a 2nd property for BRRRR but I'm wondering if anyone is still able to find deals in Southern Ontario anywhere that meets the 1% rule. With property prices north of $400k rent would have to be $4000/mo. Is BRRRRing still feasible?
Rental Property Investor · London, Ontario · Member since 2019 · 40 posts · 10 votes
6y
The only place I can think of you will be able to achieve 4k a month is in GTA for SFR. You might be able to find a multifamily and get 4k a month, but not for 400k. At current market, this kind of deal doesn't show up often (not impossible).
If you actually want to find this kind of deal, you will need to look for an off market deal.
In case you find this kind of deal let me us know what city you bought.
Rental Property Investor · Stoney Creek, Ontario · Member since 2014 · 13 posts · 3 votes
6y
I am also struggling with this. I live in Stoney Creek/Hamilton. With the rising prices, it is very hard to reference the 1% rule. I have properties in Smithville that that are cash flowing at 0.8%.
Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
6y
Nope 1% hasn't existed anywhere in southern Ontario for some time now. Possibly far north like Timmins or Thunder Bay but even Windsor isn't possible now. Or a smaller municipality like Sarnia as Hai mentions.
@Evan Kummer I am no expert and only starting with the BRRRR strategy but .8% it is still pretty good in my opinion.
What about the other numbers like the cash flow itself, your high ROI, the capital you get back, the fact that rent will increase each year so you will get to the 1% rule (if value increases less than rent) ?
Rental Property Investor · Stoney Creek, Ontario · Member since 2014 · 13 posts · 3 votes
5y
@Robert Bugeag sorry for the delayed response, but the cash flow is very good, hundred/property. Provided my tenants have been great, I don't intend to increase rents for a couple more years especially with the times we are in.