Meet Dev (name changed to protect privacy), a real estate investor who used to focus on Toronto precons.
He saw a big opportunity in Toronto’s low-rise scene due to high rents, old houses, strong housing demand combined with low supply, and many new investor-friendly housing policy changes lately.
Wanting to take on a big renovation project, Dev approached us for help.
The Investment
Dev had his eyes on a big renovation project that could see a substantial bump in value in a shorter period of time.
With $450,000 to invest, we found a $1.1 million fixer-upper in Downtown Toronto.
The property needed $200,000 of renovations and upgrades, but it presented a great opportunity – comparable finished rentals in the area were priced in the $1.5 million range.
Here's a breakdown of the investment and monthly financials:
Numbers below are based on our best estimates. Feel free to change the numbers around to see how they impact investment returns.
Goals Achieved With The Toronto BRRRR Strategy
After fixing up and renting out all three units, Dev’s triplex was bang on at $1.5 million. This allowed him to refinance and pocket $320,000 in cash, and the triplex still cash flows positive monthly.
Now, with some extra savings, Dev’s ready to reinvest and do it all over again.
Dev’s growth strategy in the real estate investing world is known as BRRRR, which stands for Buy, Renovate, Rent Out, Refinance, and Repeat.