This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
A lot of new investors focus on what to buy—but almost no one talks about how to exit, and that’s where people lose a TON of money. Too many assume selling is the only way to cash out.
But here’s a reality check: In all the deals we’ve done, how many times have we actually sold after renovating? Zero. And there’s a reason for that.
In this post, we’re breaking down the smarter way to build wealth in real estate—without handing half your profits to taxes and fees.
Why Selling Can Be a Costly Mistake
Selling is usually the least recommended option. We’ve built a strategy that focuses on refinancing, and it’s almost always the smarter move. Here’s why:
Huge Transaction Costs – When you sell, you’re giving away a big chunk of your profits in fees and taxes:
5-6% in realtor fees
3.5% in land transfer tax if you’re buying again
Legal fees
Capital gains tax (and if you’re selling too soon, the CRA may classify it as business income, meaning even higher taxes!)
Market Timing Risk – If you sell at the wrong time, a downturn could wipe out your gains. We’ve seen firsthand how fast the market can shift. Holding gives you the flexibility to ride out downturns and let appreciation and rent growth work in your favour.
The Smarter Alternative: Refinancing
Instead of selling and losing money to taxes and fees, smart investors refinance to pull out tax-free equity and reinvest.
Let’s say you renovate a property, and it’s now worth $1.5M.
What if you sell?
What if you refinance?
Instead of selling and losing money to taxes and fees, smart investors refinance to pull out tax-free equity and reinvest.
Refinance at 80% of $1,500,000 – original mortgage of $$720,000 = $480,000 tax-free cash
- Keep the property, collect rental income, and still benefit from long-term appreciation
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Use the equity to buy another property without losing money to transaction costs
The Bottom Line
Before selling, ask yourself: Do I really need to sell, or could I refinance instead? Selling is an option, but it shouldn’t be your first choice.
Refinancing lets you keep your cash flow, avoid massive tax bills, and grow your portfolio faster.
Want to See How Refinancing Works?
If you’re serious about investing in Toronto multiplex properties, let’s connect. We’ll walk you through real-life case studies and help you strategize the best move for your portfolio.
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Ready to get started? Click on the link below, and let’s start working together!
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
