Investing: Flips and BRRRRs
Flips and BRRRRs in Calgary
Buy right, renovate smart and know your exit before you start, whether that’s a sale or a refinance.
Spotlight
Adding a legal suite
One strategy I like right now is a BRRRR on a single-family home with a legal suite: two rents from one property, ideally in an area with less rental supply.
Not every basement can become a legal suite, so I’ll help you spot the homes that can before you buy.
Buy
Below what it will be worth, with clear room to add value.
Rehab
Renovations that raise the value and the rent.
Rent
To good tenants at today’s rents.
Refinance
On the new value, to pull your money back out.
Repeat
Put it into the next one.
Flip or BRRRR?
Both start the same way: buy a property that needs work for less than it will be worth once the work is done.
A flip: you renovate and sell. Selling within a year can change how your profit is taxed, so bring your accountant in early.
A BRRRR: you renovate, rent it out, then refinance on the new value to pull money back out for the next one.
Either way, holding costs, financing, permits and selling costs need to be in the numbers before you write an offer.
A good fit if
- You want to add value, not just wait for the market
- You have a budget buffer for surprises
- You have good trades lined up, or want my introductions
- You’re patient with permits and timelines
Think twice if
- You’re counting on prices rising to make it work
- Your budget has no room for surprises
- You want a hands-off investment
The process
How I help
Strategy and numbers
We set your budget, your exit plan and the returns you need.
The right property
I target neighbourhoods with strong rental demand.
Offer and conditions
With time to inspect, get quotes and price the work.
Renovation team
Introductions to contractors and trades I trust.
Sell or refinance
I list it for you, or help you lease it and line up the refinance.
Can I refinance right after renovating?
Lenders usually want the work finished, and often a lease in place. The new value comes from an appraisal, so we plan the renovation around what adds value.
How much should I budget for renovations?
It depends on the property. Get quotes during your conditions and keep a buffer for surprises.
Do you have contractors?
Yes. I can introduce you to contractors and trades I trust.
Is a BRRRR still possible in Calgary?
Yes, but the numbers need to work at today’s rents. A legal suite can make a big difference.
Services
More ways I can help
Let’s talk
Have a property in mind? Let’s run the numbers.
Happy to jump on a call or a Zoom.
Book a call
Not financial, legal or tax advice.