Question 1

What is the BRRRR strategy in Canadian real estate?

Accepted Answer

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is a real estate investment strategy where you purchase an undervalued property, renovate it to increase its value, rent it out for cash flow, refinance based on the new appraised value (After Repair Value or ARV) to recover your initial investment, and then use those funds to repeat the process with another property.

Question 2

How do I calculate if a BRRRR deal is good in Canada?

Accepted Answer

A good BRRRR deal should ideally leave little to no cash in the deal after refinancing. Key metrics to evaluate: (1) Cash left in deal — ideally $0 or negative (you pulled out more than you put in), (2) Cash-on-cash return — aim for 10%+ on any cash left in, (3) Monthly cash flow after refinance — should be positive, (4) Equity created — the difference between ARV and total all-in cost. This calculator models all five phases to help you analyze deals.

Question 3

What LTV can I refinance at in Canada for a BRRRR?

Accepted Answer

In Canada, most conventional refinances allow up to 80% Loan-to-Value (LTV) on the appraised value. Some alternative lenders may offer up to 85% LTV. For a BRRRR strategy, you want the 80% LTV refinance amount to cover most or all of your initial purchase plus renovation costs, which requires buying significantly below market value and adding substantial value through renovation.

Question 4

Can you do the BRRRR strategy in Canada with CMHC insurance?

Accepted Answer

CMHC-insured mortgages (under 20% down) generally cannot be used for investment properties in Canada. For BRRRR deals, you typically need conventional financing with at least 20% down for the initial purchase. However, private lenders and alternative mortgage lenders are commonly used for the initial acquisition phase, with conventional refinancing at 80% LTV after renovation.

BRRRR Calculator

Key Metrics

Buy Phase

Rehab Phase

Refinance Phase

Monthly Cash Flow (after Refi)

Equity Growth

Annual Cash Flow

Total ROI Over Time