“BRRRR,” otherwise known as “Buy Rehab Rent Refinance Repeat” is a popular strategy for real estate investors.
This strategy involves purchasing a property in need of repairs, renovating it, renting it out, and then refinancing the mortgage to free up equity for further investments.
This strategy can turn a novice investor into a seasoned professional by helping them build their portfolio, increase cash flow, and generate wealth. With careful analysis of the market and a solid plan, investors can purchase properties below market value, increase their value through renovations, and rent them out for a steady income. Finding cash flowing properties is obviously a huge benefit for the model to work. This can be challenging in todays market. But understanding your local market and working with a realtor will help you to navigate the best time to purchase and for the right price.
Snowball Your Equity
Refinancing allows investors to access the equity in the property and use it to purchase more properties, creating a cycle of growth and success. Having a great Mortgage Broker on your team is also a huge asset. Knowing what you can afford and how the current interest rates will affect your borrowing power is HUGE.
Paul Gazzola at Mortgage Architects is someone we have worked with time and time again, and would highly recommend him and his team of professionals. Paul is located at 3 Speedvale Ave. in Guelph, and should be one of your first calls if you are looking to start executing this strategy. Whether you’re located in Guelph or elsewhere, this strategy can be a great way to achieve success as a real estate investor.
Having a good contractor/builder on your team is another great asset (unless you can manage this portion yourself). All properties need regular maintenance, but some need significant work in order to maximize your rent rates. Having a TRUSTED professional that can give you appropriate estimates and stay on agreed upon timelines will help you to keep your investment working for you!
Do you want to know more about how to invest in real estate? Here are some related reads you may enjoy:
- The Pitfalls and Payoffs of Real Estate Investing in Guelph
- A Guide to Buying Pre-Construction in Guelph
A Trusted and Proven Model for Success
I have many clients that use this model to build their portfolio and wealth. It is important to work with a trusted real estate professional to ensure you’re investing in the right areas, the right type of home and of course purchasing and negotiating for the right price. Purchasing in the wrong area can lead your investment not achieving the right rent rates OR whats worse, staying vacant for too long.
The beauty of investing in Guelph is the University continually brings in renters each and every year. AND year over year keeps growing. Currently Guelph is in a housing crisis, as we do not have enough single family dwellings to accommodate its population. Now with the new announcement that Conestoga College is taking over the old Cooperators Building Downtown Guelph, expected September 2025, we can expect the need for rentals to only increase city wide.
KEY POINTS:
- Talk to a mortgage broker
- Understand the area your looking to invest in (rent rates, population, demand)
- Work with a trusted Realtor®
- Have a good relationship with a contractor/builder
- Understand this will not be an overnight success- takes years of building
Do you have questions about how to get started as a real estate investor or how to add to your portfolio? Reach out to nick@cbn.on.ca or call 519-830-4823 for more information.
