How to Use the BRRRR Strategy in Canada
- Greenell Properties Capital
- Sep 8
- 2 min read
The BRRRR method—Buy, Renovate, Rent, Refinance, Repeat—has become one of the most popular strategies for real estate investors looking to scale fast and recycle capital. But in the Canadian lending environment, it comes with unique rules and risks.
In this blog, we break down how the BRRRR strategy works in Canada, what makes it different from the U.S., and how to do it right.
1. Buy Below Market Value
The foundation of BRRRR is buying under market value—often properties that need cosmetic or structural work.
Look for:
Outdated interiors
Deferred maintenance
Motivated sellers (e.g. estate sales, vacant units)
Investor Tip: Don’t overpay. Your profit is made when you buy.
2. Renovate for Value
The goal is to increase the property’s after-repair value (ARV) through strategic upgrades.
Focus on:
Kitchens, bathrooms, flooring
Legalizing units
Improving layouts for multi-family
Budget smart: Know what improvements add appraisal value and which don’t.
3. Rent to Quality Tenants
Before refinancing, stabilize the asset with solid tenants. This creates income history and improves your loan-to-value options.
Key docs:
Signed leases
Rent roll
Proof of market rents (MLS, Craigslist, etc.)
4. Refinance to Pull Out Capital
Once rented and renovated, refinance the property at the new appraised value. Use the equity to repay your initial investment and fund the next deal.
Important in Canada:
Refinance timelines can vary by lender (some require 6+ months of seasoning)
CMHC rules differ from conventional lenders
5. Repeat with New Deals
With your capital recycled, repeat the process to grow your portfolio with less out-of-pocket money over time.
Final Thoughts
BRRRR is a powerful way to scale—but only works when your numbers are accurate and your refinance strategy is solid. Misjudge your ARV or timelines, and your cash stays locked.
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