Real estate investing has always required creativity, timing, and smart risk-taking—but in a high-interest rate, low-inventory market like we’re seeing in 2025, strategies need to evolve. One approach that continues to generate buzz (and results) is the BRRRR strategy: Buy, Renovate, Rent, Refinance, Repeat.
But does the BRRRR method still hold up in today’s Canadian real estate market? Let’s break it down.
📉 Does BRRRR Still Work in 2025?
✅ Yes—But With Adjustments
While the fundamentals of BRRRR still work, market conditions have changed, especially in Canada.
🔺 1. Higher Interest Rates
Challenge: Refinancing is more expensive, and cash flow can be tighter.
Solution: Focus on higher-yield markets (e.g., smaller Ontario cities or emerging Alberta towns) where rental income offsets borrowing costs.
🔒 2. Tighter Lending Standards
Challenge: Lenders are conservative when assigning post-renovation appraisals.
Solution: Use a mortgage broker experienced in investment lending. They’ll know which lenders understand BRRRR math.
🔨 3. Construction Costs and Delays
Challenge: Reno budgets can quickly spiral.
Solution: Choose cosmetic renovations over full guts. Focus on updates with the highest ROI—kitchens, bathrooms, and curb appeal.
🧮 Example of a BRRRR Deal in 2025
Here’s a real-world-style deal from the SLGPropertyDeals.ca network:
- Purchase Price: $320,000 (off-market duplex)
- Renovation Budget: $50,000
- All-In Cost: $370,000
- After-Repair Value (ARV): $470,000
- Rental Income: $3,000/month
Refinance (80% of ARV): $376,000
➡️ You pull out nearly all your capital while holding a cash-flowing property.
🔍 Pro Tips for Today’s BRRRR Market
- Buy Below Market Value
The deal is made at purchase. That’s why we focus on off-market and distressed deals. - Know Your Numbers
Budget for renos, vacancy, maintenance, and current interest rates. - Build a Strong Team
Contractors, investor-focused realtors, and mortgage pros are essential. - Cash Flow First
Appreciation is great, but positive monthly income is what sustains you. - Be Active, Not Passive
BRRRR isn’t a hands-off strategy—it’s for investors ready to execute.
🚀 Final Thoughts
The BRRRR strategy still works in 2025—but it requires more precision and more strategy than ever before. The upside? Investors who can find and execute the right deals can still build long-term wealth with recycled capital.
At SLGPropertyDeals.ca, we help investors like you access off-market, cash-flowing properties ideal for BRRRR.
👉 Join our investor list today to get exclusive access to deals before they hit MLS.