The Canadian BRRRR Method — Done Right

BRRRR works in Canada — with two adjustments. The US version assumes 75% cash-out refi and 6-month seasoning. Canadian banks typically allow 80% cash-out refi but require 12 months of stabilized operating history. Here's the Canadian playbook.

Step 1 — Buy below market

Buy with cash, HELOC, or a private-money bridge loan. Target homes that need cosmetic + system updates but aren't structural. Aim for 70-75% of post-rehab value when including rehab cost.

Step 2 — Rehab to the rental standard

Don't over-renovate. Target the look of new-construction-rental (LVP flooring, quartz counters, white-painted cabinets). Budget kitchen + bath rebuild at $18-28k per door in most Canadian markets in 2026.

Step 3 — Rent at market or slightly below

Below-market by 3-5% rents fast and signals a stable tenancy, which the appraiser scores favourably during the refi. Document everything — first lease, deposit receipts, condition reports.

Step 4 — Refinance after 12 months stabilized

Most Canadian B-lenders allow 80% LTV cash-out refi after 12 months of rental history. A-lenders typically want 24 months but offer 75-100 bps better rates.

Step 5 — Repeat

Pull your capital + appreciation back out. Apply to the next deal. The compounding effect: a single $250k deposit can fund 3-5 stabilized doors in 24-36 months when the BRRRR engine is running.