If you’ve been following real estate investing trends, you’ve probably come across the term BRRRR Strategy—short for Buy, Renovate, Rent, Refinance, Repeat. In 2025, as Ottawa’s housing market evolves, this approach is gaining traction with savvy investors who want to scale their portfolios while minimizing the amount of new capital they put in each deal.
Whether you’re a first-time investor or a seasoned landlord, Ottawa’s unique mix of stable rental demand, growing population, and diverse housing stock makes it an ideal city to apply BRRRR. But success depends on understanding the market, the math, and the risks. Let’s break down how you can use the BRRRR method successfully in Ottawa in 2025.
Step 1: Buy – Finding the Right Property in Ottawa
The first step is identifying a property that has value-add potential. Not every home is suitable for BRRRR. In Ottawa, target neighborhoods where homes are older but rental demand is strong.
🔑 Best property types for BRRRR in Ottawa:
Bungalows and post-war homes in areas like Carlington, Overbrook, or Elmvale Acres.
Multi-unit conversions (duplex/triplex) in Centretown, Sandy Hill, and Hintonburg.
Fixer-uppers in emerging suburbs like Orleans, Barrhaven, or South Keys.
Look for motivated sellers, estate sales, or homes sitting longer on the market. Remember: profit is made at the time of purchase, not the sale.
Step 2: Renovate – Adding Value Strategically
Renovations are where you unlock equity. But in 2025, with material costs still high, smart investors focus on high-impact, cost-effective upgrades.
✅ Renovations that add the most value in Ottawa rentals:
Basement apartment conversions (secondary dwelling units are in high demand).
Kitchen & bathroom updates (appealing to tenants and appraisers).
Energy efficiency upgrades (windows, insulation—bonus for eco-conscious renters).
Modern flooring & paint for a quick refresh that boosts rental appeal.
Be mindful of Ottawa’s zoning bylaws and permits when making changes. Illegal suites can ruin your BRRRR play.
Step 3: Rent – Locking in Strong Tenants
Once renovated, it’s time to rent at market rates. Ottawa’s rental market remains tight in 2025, with vacancy rates hovering near historic lows. This works in investors’ favor.
🎯 Tips for Ottawa landlords during the Rent stage:
Target professionals, students, or small families depending on location.
Offer modern finishes to justify higher rents.
Use thorough tenant screening—credit checks, references, employment verification.
Consider furnished rentals in areas near uOttawa, Carleton, or the hospitals for higher monthly income.
The higher the rent, the stronger the refinance appraisal will look.
Step 4: Refinance – Unlocking Your Equity
Here’s where the BRRRR magic happens. After boosting the property’s value, you refinance with a lender to pull out your equity.
Key refinance considerations in 2025:
Appraisal accuracy matters – choose lenders familiar with Ottawa neighborhoods.
Interest rates are more stable than the spikes of recent years, but still higher than pre-2020s. Run your numbers conservatively.
Loan-to-value (LTV) typically allows up to 80% refinancing.
Example:
Purchase: $500,000
Renovation: $50,000
Total: $550,000
Appraised value post-reno: $700,000
New mortgage (80% LTV): $560,000
You’ve essentially pulled out most of your invested capital while keeping a cash-flowing rental.
Step 5: Repeat – Scaling Your Ottawa Portfolio
The final step? Do it all again. BRRRR works because it lets you recycle your capital into the next deal without needing massive new cash injections.
Ottawa investors who succeed at BRRRR in 2025:
Focus on neighborhoods before they peak.
Build strong contractor and realtor relationships.
Track cash flow and appreciation trends closely.
With LRT extensions, new immigration targets, and a tech/public sector job base, Ottawa’s fundamentals support long-term rental growth.
Risks and Red Flags for BRRRR in Ottawa
While powerful, BRRRR isn’t without risks:
Overpaying on the buy – kills future profits.
Renovation overruns – common with older Ottawa housing stock.
Tenant turnover or arrears – protect yourself with careful screening.
Appraisal surprises – sometimes values don’t come in as high as expected.
Smart investors build in buffers, plan for delays, and keep cash reserves.
Final Thoughts: Why BRRRR Works in Ottawa in 2025
The BRRRR strategy thrives in markets like Ottawa where rental demand is strong, property values are steady, and value-add opportunities still exist. If you approach it with discipline—buying right, renovating wisely, and managing tenants effectively—you can build serious wealth and scale your portfolio without constantly raising new capital.
For investors in 2025, Ottawa isn’t just Canada’s capital—it’s a capital of opportunity.
