If you’ve ever wondered how some investors keep buying property after property without saving up new down payments every time, here’s the secret: the BRRR method.

It stands for Buy, Renovate, Rent, Refinance, Repeat, and it’s one of the smartest ways to grow a real estate portfolio while recycling the same capital over and over again.

Let’s break down how it works and where to be cautious.

1. Buy Smart

The first step is buying a property that has room to grow in value. That usually means something a bit outdated, dirty or under-rented, but in a solid area with strong rental demand.

Look for:

• Cosmetic fixer-uppers (tired kitchens, dated flooring)
• Properties with legal-suite potential or flexible layouts
• Homes with corner lots or deep yards suitable for a future ADU (Accessory Dwelling Unit)
• Undermarket rents or poor management
• Homes that haven’t been maintained or presented well

Resource: Investor Due Diligence Checklist to help you confirm zoning, leases, and legality before you buy.

Before purchasing a property, run the numbers through our Cash Flow Calculator to ensure it’s a strong investment.

2. Renovate to Add Value

This is where your sweat equity pays off. Focus on strategic upgrades that increase both the property’s income potential and appraised value.

High-impact improvements include:

• Updating kitchens and bathrooms for modern appeal
• Adding additional bedrooms – for example, converting a dining room into a main-floor bedroom or finishing a basement to add two bedrooms or a separate income suite
• Building an ADU or coach house, if zoning allows – corner lots are often ideal for this
• A fresh coat of paint and deep cleaning throughout- simple but highly effective for homes that have been neglected
• Upgrading lighting, flooring, or curb appeal for a better presentation

The key is to invest in upgrades that directly improve rentability or value, not just aesthetics. Keep detailed records and receipts; your lender will need them when you refinance.

3. Rent to Reliable Tenants

Once renovations are complete, you’ll want a stable, predictable income to show lenders that your property performs well.

Tips for Choosing Good Tenants:

• Verify income and employment (aim for at least three times the monthly rent).
• Check credit reports and references from previous landlords.
• Look for tenants with a consistent rental history and professional communication.
• Meet them in person when possible – reliability often shows through how they interact.
• Do a quick online search of their name. A simple Google or Facebook search can reveal red flags- such as public landlord complaints. It takes two minutes and can save you months of headaches.

Avoid rushing this step. One bad tenant can cost more than months of vacancy.

Resource: Tenant Screening Checklist – a step-by-step guide for screening tenants effectively.

4. Refinance to Pull Out Equity

Here’s where the BRRR magic happens. After your renovations and lease-up, the property should be worth significantly more. You can refinance it based on the new appraised value and pull out much or sometimes all of your original investment.

Real-Life Example

You purchase a duplex in Guelph for $800,000 and invest $120,000 in renovations – adding an extra bedroom, new flooring, fresh paint, updated kitchens and bathrooms, and enhanced curb appeal.
After completion, the property is reappraised at $1,000,000.

• 80% of new value = $800,000 mortgage
• Original mortgage was $640,000 → you can pull out $160,000 in equity
• That covers your renovation costs and most of your initial down payment.

You now own a cash-flowing duplex and have funds to invest in your next property – without saving another down payment.

Resource: Refinance Analysis Calculator – see how much equity you could unlock. (Tip: Click “Make a Copy” to create your own version and start entering your numbers!)

5. Repeat to Scale

Use that recycled capital as the down payment on your next property, and repeat the cycle. Each property builds equity and income, creating a snowball effect over time.

Keys to success:

• Maintain a cash buffer for vacancies or interest rate changes.
• Avoid over-leveraging – prioritise properties that still cash flow after refinancing.
• Reassess your portfolio regularly to ensure your returns are aligned with your goals.

Common BRRR Mistakes

Underestimating Renovation Costs or Timelines:
Unexpected issues – like electrical upgrades, permits, or weather delays – can eat into profits fast. Always budget 10–15% for overruns.

Overvaluing the After-Repair Value (ARV):
It’s easy to get overly optimistic about the appraisal. Base your numbers on actual sold comparables, not listings.

Ignoring Carrying Costs During Renovations:
Mortgage payments, taxes, and utilities continue while you renovate. Build them into your calculations so you’re not surprised by cash flow gaps.

Refinancing Too Early:
If you refinance before tenants are stabilised or before your full value is realised, you might limit how much equity you can access.

Over-Leveraging Your Portfolio:
Too much debt can turn opportunity into risk- especially when rates rise or values dip. Always leave room to breathe financially.

Neglecting Tenant Quality:
Don’t rush to fill the unit just to qualify for refinancing. Poor tenant choices can lead to late payments, property damage, or turnover costs that erode your returns.

Final Thoughts

The BRRR method isn’t a get-rich-quick strategy – it’s a disciplined system for recycling your capital and steadily building wealth through real estate. With the right properties, careful math, and a trusted team behind you, it can be one of the most effective ways to scale your portfolio in today’s market.

If you want help finding the right property to start your first BRRR – or to review whether one of your existing investments has refinance potential – the GoWylde Real Estate team can help you analyse the numbers and connect you with reliable mortgage, construction, and property management partners.

Book an Investment Strategy Call with GoWylde Real Estate to start planning your next move.