Canadian BRRRR calculator
BRRRR works when the refinance pulls your cash back out. Enter the purchase, the rehab, and the after-repair value to see how much you recover and how much stays trapped.
BRRRR lives on the refinance. BrickROI tests it.
BrickROI runs the buy and the refinance on your real listing, with the after-repair value, the new payment the Canadian way, the DSCR on the refinanced loan, and a lender-ready PDF. Paste a Canadian listing and see if the cash comes back in two minutes.
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How BRRRR works in Canada
BRRRR is five steps: buy, rehab, rent, refinance, repeat. The idea is to buy a property that needs work below what it will be worth fixed up, renovate it, rent it, then refinance on the new higher value. The refinance pulls most or all of your cash back out, and you carry that cash to the next deal. Done well, a small pool of cash buys several properties over time.
The whole model rests on the refinance. A lender will lend up to a loan-to-value limit, often around 75 to 80%, on the new appraised value. You take that loan, pay off what you owe, and keep the rest. If the after-repair value and the rent come in where you planned, you recover most of your cash. If they come in low, you leave more in, and the repeat step slows down.
Where Canadian BRRRR deals get stuck
The appraisal is the choke point. You can control the rehab, but the new value is the appraiser's call, and rates at refinance time are the market's call. Both can move against you. A conservative investor underwrites a lower after-repair value than the optimistic one and checks that the refinanced mortgage still clears DSCR with the rent the property actually earns.
Run these before you commit
- Use a realistic after-repair value, ideally backed by comparable sales, not a hopeful number.
- Check the refinanced payment with the Canadian compounding rule and confirm the DSCR still clears.
- Budget holding costs for the months between purchase and refinance, when the property earns nothing.
BRRRR questions
What does BRRRR stand for?
Buy, Rehab, Rent, Refinance, Repeat. You buy a property that needs work, renovate it, rent it out, then refinance based on the new higher value to pull your cash back out. If it works, you recycle that cash into the next deal.
How much cash can I pull out on a refinance?
Lenders refinance up to a loan-to-value limit, often around 75 to 80% of the new appraised value. You subtract the existing loan from that amount to see your cash back. This calculator shows how much you recover and how much stays in.
What makes BRRRR risky in Canada?
The refinance depends on the after-repair value and the appraisal, and both can come in lower than you hoped. Rates at refinance time also matter. If the new value or rent falls short, you leave more cash in the deal than planned, which slows the repeat step.
Does the Canadian compounding rule affect BRRRR?
Yes, on the new mortgage. Canadian fixed mortgages compound twice a year, so the refinance payment should use that rule. BrickROI runs the new payment the Canadian way and checks the DSCR on the refinanced loan.