BRRRR Strategy in Hamilton: A Case Study

The BRRRR strategy (Buy, Renovate, Rent, Refinance, Repeat) is one of the most effective ways to build a real estate portfolio with limited capital. Hamilton has become a prime location for this strategy due to affordable property prices, strong rental demand, and increasing home values.

In this blog, we’ll break down how BRRRR works and showcase a real-world example of an investor successfully using this method in Hamilton.

1. Understanding the BRRRR Strategy

The BRRRR method allows investors to recycle their capital and scale their portfolios. The five steps are:

Buy – Purchase an undervalued property. Renovate – Improve the property to increase its value. Rent – Find tenants to generate rental income. Refinance – Pull out equity through a mortgage. Repeat – Use the refinanced funds to buy another property.

2. Why Hamilton is Ideal for BRRRR

Hamilton is one of the best cities in Ontario for BRRRR because:

Affordable Entry Prices – Compared to Toronto, Hamilton offers lower-cost properties with strong upside potential. High Rental Demand – Growing population, student housing (McMaster University, Mohawk College), and a booming job market. Favorable Zoning Rules – Many areas allow duplex and triplex conversions, increasing rental income. Strong Appreciation – Property values in Hamilton continue to rise, making refinancing more lucrative.

3. Hamilton BRRRR Case Study

Investor Profile:

• Investor Name: Sarah (first-time BRRRR investor)

• Location: Crown Point, Hamilton

• Property Type: Detached single-family home (2-bedroom, 1-bath)

• Purchase Price: $550,000

Step 1: Buy

Sarah found an off-market fixer-upper in Crown Point, a rapidly improving neighborhood in East Hamilton. She negotiated a purchase price of $550,000, securing it under market value.

Step 2: Renovate

• Total Renovation Budget: $80,000

• Upgrades:

  
  

  Finished basement with an additional bedroom & bath

  
  

  New kitchen, flooring, and paint

  
  

  Exterior upgrades (landscaping, curb appeal)

Step 3: Rent

After renovations, Sarah listed the property as a legal duplex and secured two tenants:

• Main Unit (2 Bed, 1 Bath): $2,200/month

• Basement Unit (1 Bed, 1 Bath): $1,800/month

• Total Monthly Rent: $4,000

Her monthly mortgage payment (after refinance) was $2,800, leaving her with $1,200/month in cash flow!

Step 4: Refinance

After six months, Sarah’s property was appraised at $750,000, allowing her to refinance at 80% loan-to-value (LTV).

• New Mortgage: $600,000

• Cash-Out Equity: $100,000 (used for the next BRRRR property)

Step 5: Repeat

With $100,000 pulled from her refinance, Sarah repeated the process with another duplex in Stinson, Hamilton.

4. Key Takeaways for Investors

Find Off-Market Deals: The best BRRRR opportunities often come from distressed properties or motivated sellers. Budget for Renovations Wisely: Over-improving a property can reduce profit margins—focus on value-add upgrades. Know the Rental Market: Hamilton’s legal secondary suites and high demand for rental housing make multi-unit properties ideal. Work with a Mortgage Broker: A strong refinancing plan is essential to pull out capital efficiently.

Conclusion

The BRRRR strategy in Hamilton remains one of the best ways to scale a real estate portfolio with minimal upfront capital. With the right property, smart renovations, and strong refinancing, investors can build long-term wealth while generating positive cash flow.

Are you ready to start your first BRRRR deal in Hamilton? Now is the time to explore the market and find your next investment opportunity!