Real Life Example of BRRRR Real Estate Investing Method in Canada

Real Life Example of BRRRR Real Estate Investing Method in Canada



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What is the BRRRR real estate investing strategy? How can you use the BRRRR investing strategy to make money in real estate? This strategy may also be known as a cash out refinance.

BRRRR is a term coined by bigger pockets. It stands for:
BUY
RENOVATE
RENT
REFINANCE
REPEAT

When BRRRRing a property you purchase a distressed or underutilized property, improve it through strategic renovations, then rent it out for a higher value – now because you’ve improved the property through the renovations + increased rents – you can now have it reappraised and pull out the new equity you’ve created.

Want to read the book that inspired Matt to get into real estate investing:

In this video (and the next one) Matt walks you through a real life example of the BRRRR investing strategy in action! And shows you exactly how to calculate a successful BRRRR investment!

Early Retirement Extreme:
Think and Grow Rich:

At Early Retirement Extreme Jacob goes indepth into the theory behind how to retire within 5 years.
Mr Money Mustache: and the amazing article that discusses the 4% safe withdrawal rate and the trinity study:

Matt McKeever

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Matt McKeever is a CPA, CA and Real Estate Entrepreneur in London, Ontario. On this YouTube Channel Matt will walk the viewer through how to invest in real estate using such strategies as the BRRRR method while also documenting his personal experience as a real estate investor. Matt began investing in real estate at age 25 by purchasing a student rental near Fanshawe College. In 2016 he’s acquired over 25 units.

As well on this channel Matt will share his personal monthly spending and discuss the strategies and tactics needed to reach financial independence (retire early) at a young age. We’ll discuss such topics as safe withdrawal rates, how to build passive income streams and how to reduce your personal consumption

BACK IN SUMMER by Nicolai Heidlas Music
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36 thoughts on “Real Life Example of BRRRR Real Estate Investing Method in Canada

  1. Dude, I love the simplicity of your content. However, I’m tired of watching videos that display an ideal example. Talk more about the realist and f investing n, please.

  2. Hi Matt: I am from Canada and binge-watching your videos. Curious what the cash flow was on this deal after the refi

  3. Question: Where/How did you get deposit for 122K house which, in Canada is 10% so 12,200$ AND cash to do/cover 28K for reno and closing costs??

    Thank you for your videos

  4. Great information, this is a powerful real estate investing strategy interesting to see how you added value to the property. I have a similar video involving a flip property that i turned into a rental. Thanks for sharing this deal with us.

  5. So I was under the impression that the 1% rule was based on the amount of money the deal cost not the amount the property is worth. So this deal should be 1% of 150k not the 200k. Correct me if I am wrong.

  6. Hi, Matt, I enjoy your maths, I want to go invest with you on this market. I have got around 800 k in cash. I studied several markets around Europe, but that looks very sexy. Let's get in touch!

  7. matt what would the housing market in ontario mean in regards to this method while still owning the properties? would it be a loss and are you scared of that? sorry im very new to this. also what would be a fast way you get the startup funds to make this investment intitally?

  8. Can someone or Matt tell me if he got two mortgages on the house. Did the second refinance mortgage replace the first. and if so did Matt pay for legal fees twice? Once to buy and once to refinance?

  9. I'm a bit confused. You said nothing about the down payment on the initial loan. 24,400(CASH) down on the the initial loan then you put 28,500(CASH) for RENO then you got back 9000(CASH) after the REFI. Please correct me if I'm wrong but you didn't get much back after investing almost 53,000 dollars.

  10. So does this mean you actually need 150 K from your own money before you could even do this? Because you need to buy the property before you can get a mortgage on it.

  11. Even tho the $9000 is in the form of cash, you still derived it from a mortgage so its basically a loan and cant be seen as a profit. What was created of value was the $40k in equity with no money down.

  12. This is my newest and most favourite real estate strategy. I just love it.

    I love this strategy mainly because it is a whole system in itself.
    Systems bring success. When you have a system and a strategic plan you are always able to grow and scale your business.
    That is excellent. I love how the last "R" of the strategy means "repeat".

    Definitely gave you a big like and a share! 🙂 😉 🙂 (^O^)

    And I'm totally using this concept in my daily life and business.
    (I have watched this vid a few weeks ago, i'm just commenting now)

    – Danny

    Digital Marketer
    (Social Media & Website Management)

  13. Confused on one part. How did the 9K materialize? If you had a mortgage for the original 122K then paid all expenses, and you refinance. Wouldn’t the bank just add the 9K into existing equity ? How did it become liquid cash?

  14. The refinanced difference is only tax free if you reinvest it. Should there be a paper trail of your difference that shows that you used it for personal purposes, it is not tax free.

  15. Ideally what you would do is use the refinance funds to purchase another property and let the rent money alone pay down your acquisition and renovation costs (assuming that you borrowed money to finance those two in the first place). Otherwise you’re merely paying down debt with debt and I don’t see how that makes you any money unless your new loan terms are much more favorable than your previous loan.

  16. hahaha. 1% value to rental rule. not applicable in Toronto. average price of house $1mil. 1% is $10,000.00/m rent. will never happen in my wildest dream. good effort tho with the numbers.

  17. Hi. Great video. Can you share what's your cash flow on this property or your strategy as a buy and hold investor.

    I am new to the REI and are looking at the numbers. Based on the information in the video. The cash flow I est. is $85 a month after 6 months of works.

    The assumptions I have are,

    Monthly income – $1800

    Monthly expenses – $1715

    – mortgage 810 (160K, 30 years @4.5%) – tax 250 (3K/year)- insurance 100 (1.2K/year)- property management 180 (10%)- repairs 90 (5%)-vacancy/turnover 144 (8%)-cap x 90(5%) – misc. 50 (lawn, snow, trash etc)

    Please let me know if I missed something as that's a lot of work and time for $85/mo cash flow and the potential risk if one future renter trash the place which can wipe out muti-years cash flow earned. Please share your thoughts. Thank you again.

  18. So in buying my first home if i want to buy an investment property and live in one of the units will i loose out on the first time home buyers rebate?

  19. Matt, I'm confused about something.

    Why would you want to re-finance a property? Because the way I understood it, it seemed that you had a mortgage for 122,000 and now you have a new mortgage of 160,000, which would increase your monthly mortgage?

    I also don't understand how you would have 9,500 in remaining cash, considering the 160,000 is a new mortgage loan?

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