Hey there, real estate enthusiasts! Today, I’m pulling back the curtain on how I transformed a rundown triplex into a cash cow using the BRRRR method and expanded my investing horizons by venturing 3,100 km away from home. Whether you’re new to real estate or a seasoned investor, this strategy can be a game-changer. Let’s dive in.

What Is the BRRRR Method?

First things first—BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It’s a systematic way to build wealth by acquiring properties that need some TLC, fixing them up, renting them out, and pulling out the equity to buy more properties.

Here’s a quick breakdown:

  1. Buy: Snag a property below market value.
  2. Rehab: Fix it up to increase its value and rental potential.
  3. Rent: Find tenants to generate steady income.
  4. Refinance: Get the property appraised and take out a mortgage to recover your initial investment.
  5. Repeat: Use the money to buy your next project.

Broadening Horizons: Investing 3,100 km Away in Saint John, New Brunswick

How One Phone Call Changed Everything

I had an enlightening conversation with Brock Rogerson, a seasoned real estate investor based in Calgary. Brock owned an impressive portfolio of around 33 rental properties just in Winnipeg, and I was looking to purchase eight of them through a vendor financing deal. Essentially, this strategy would allow me to acquire these income-generating properties with no money down—a highly leveraged approach. While risky, this method can be a powerful way to build an asset base quickly, provided the cash flow from the properties is sufficient to service the debt.

During our discussion, I was curious about what Brock planned to do with the funds from selling some of his properties. His response surprised me: he had been investing heavily in Saint John, New Brunswick. Intrigued, I started researching Saint John properties on Realtor.ca while we were still on the call. What I found was shocking—properties in Saint John were listed at prices that seemed almost too good to be true. I initially thought there must be a catch, but Brock assured me that these prices were legitimate. He went on to explain why he believed Saint John was a promising market for real estate investment.

After our call ended, I couldn’t shake the idea of investing in Saint John. Within two weeks, I made a decision and called Brock back. I told him I was no longer interested in purchasing his Winnipeg properties. He was understanding and said it was no problem. A week later, Brock called me back, asking me to reconsider, but by then, my focus had fully shifted. I declined once more.

During that second call, he overheard some background noise of an intercom system and asked, “Where are you right now?”

I told him, “I’m at the Montreal airport.”

“Where are you going?” he asked.

“Saint John, New Brunswick,” I replied.

“You f***er!” he said with a mix of humor and exasperation.

Despite the playful jab, Brock was a good sport and shared valuable advice about the Saint John market. He pointed out areas to avoid, recommended trusted professionals to work with, and flagged potential challenges to watch out for. His guidance proved invaluable as I began exploring this new real estate opportunity.

That single conversation with Brock completely changed my investment trajectory. It’s a great reminder of how keeping an open mind—and asking the right questions—can uncover opportunities you might never have considered.

This was the beginning of a realization that changed my entire approach to real estate: I didn’t need to invest where I lived.

The Myth of Investing in Your Backyard

Many investors cling to the idea that they need to buy properties close to home. It feels safer. But as I started exploring Saint John, I saw how limiting that mindset truly is. With today’s technology—Zoom, DocuSign, online banking, and property management platforms—it’s easier than ever to invest in markets far from home.

Think about it:

  • If a property floods, what am I going to do by standing there? I’m going to call a professional.
  • If a tenant doesn’t pay, am I going to knock on their door? No—I’ll call my property manager.

Living near your properties doesn’t solve problems; it often creates more distractions.

How I Got Started Without Connections

Without knowing anyone or having any local contacts, I decided to dive right in. I booked a flight to Saint John, searched Google for every contractor, property manager, and real estate agent I could find, and reached out to all of them. My goal? To meet as many people as possible and gather actionable insights.

I booked a hotel near a Tim Hortons, set up back-to-back meetings every 30 minutes for two straight days, and fueled up on coffee while asking every single person the same set of questions:

  • Which areas would you invest in?
  • Where would you buy, and where would you avoid?
  • What pitfalls should I watch out for?
  • Who are the top contractors and service providers you trust?

I also made it a point to get a feel for the community. I walked neighborhoods I was considering, chatted with people on the streets, and visted at all hours of the day to explore the area at different times. I asked myself:

  • Would I feel safe here at night?
  • Would my family?
  • What are the nearby amenities?
  • How are the schools?
  • Is public transit nearby?

To broaden my network, I connected with local bankers and insurance representatives, joined real estate groups on Facebook, and reached out to other investors in the area. By being persistent, I started to piece together a network of trusted contacts and built a solid Rolodex of professionals who could guide me.

Touring Properties and Making Offers

Once I had a good understanding of the market and had built relationships, I spent two more days touring properties with Realtors. I evaluated what made sense, narrowed down my options, and submitted offers. The property I’m writing about was one of those initial investments. After securing it, I set up systems to manage everything remotely.

Now, I meet virtually with property managers once a month to review rent rolls, expenses, and ensure everything is running smoothly. Early on, I managed contractors closely, providing detailed scopes of work and requiring signed agreements to ensure clarity. I avoided paying upfront, maintaining open communication, and relying heavily on referrals to find trustworthy professionals.

Building a Team Through Referrals

I live by the saying, “Rockstars know rockstars.” When you find excellent Realtors or property managers, they’ll often know the best contractors, mortgage brokers, and insurance agents too. By building my team through referrals and recommendations, I’ve created a network of reliable professionals who keep things running smoothly.

While you can’t avoid every issue, working with good people minimizes risks and ensures most processes go relatively smoothly. My strategy has always been to build and manage teams based on trust and proven expertise, which has been instrumental in my success.

Streamlining Deals with the “Miracle Email”

One of the key strategies I’ve implemented to manage deals efficiently is what I call the “miracle email.” Once I’ve identified a property, crunched the numbers, and decided to move forward, I send out a single mass email to everyone involved in the transaction. I include all relevant parties—lawyers, appraisers, inspectors, Realtors, bankers, property managers, contractors, and insurance agents—ensuring they’re either CC’d or BCC’d based on the context.

In this email, I outline the essential details: the property address, closing dates, the game plan, and everyone’s contact information and role. The message is simple: “The next deal is on. Let’s go!” I encourage the team to communicate directly with each other to meet deadlines, which prevents bottlenecks and minimizes the chances of delays.

This approach creates a seamless workflow:

  • Lawyers communicate directly with bankers.
  • Contractors coordinate with property managers for access.
  • Realtors work with inspectors and appraisers to arrange property visits.
  • Appraisers liaise with banks, who in turn collaborate with lawyers.

It’s like having your own team of professionals on payroll—but instead, they’re all third-party experts brought together for each transaction. This level of coordination ensures that every step of the process moves forward efficiently without constant back-and-forth through me.

By fostering direct communication among the team, I’ve been able to significantly streamline the closing process, enabling me to scale my portfolio quickly—even from a distance. It’s a pivotal strategy that’s been instrumental in maintaining momentum and ensuring deals get done without unnecessary hiccups.

The Triplex Transformation: Applying BRRRR in a New Market

Alt text The Triplex

Finding the Perfect Diamond in the Rough

In Saint John, I stumbled upon a triplex listed for $64,900. It had been sitting on the market for over 120 days because it was, frankly, a disaster—walls ripped out, knob-and-tube wiring (a big no-no for insurance companies), and literal garbage everywhere. Most people wouldn’t touch it—but I saw potential.

Alt text 2nd level kitchen as-purchased

Negotiating the Deal

I hired an inspector to highlight all the property’s flaws and presented the sellers with a list of renovation costs. They agreed to sell for $40,000, and I paid cash because the property was in such bad shape and to cheap for me to finance. I considered cash advancing a credit card for the payment, but opted for a credit line. This was an easy cash play for me, and it was time to get to work.

Alt text 1st level living room as-purchased

The Rehab: Turning Trash into Treasure

I budgeted $35,725 for renovations. Here’s how I allocated the funds:

  • Electrical Upgrade: $12,000 to bring it up to code.
  • Garbage Removal: Six dump runs costing $1,500.
  • Fire-Rated Doors & Fixtures: $5,000 for safety and aesthetics.
  • Hardwood Refinishing: Instead of installing new floors, I refinished the existing hardwood to preserve the character.

With a bit of paint, trim, and updated kitchens and bathrooms, the property was unrecognizable. Each unit—three flats with three bedrooms and one bathroom each—was now move-in ready.

Alt text 2nd level living room after renovations

Alt text 2nd level bathroom after renovations

The Numbers: Before and After

  • Purchase Price: $40,000
  • Renovation Costs: $35,725
  • Total Investment: $75,725

Rental Income:

  • Two units rented for $950/month (heat and electricity included).
  • One unit rented for $750/month (tenants pay utilities).
  • Total Monthly Rent: $2,550

After accounting for vacancy, maintenance, and utilities, the property nets me $1,280/month in profit. And I hadn’t even refinanced yet.

Refinancing: The Real Magic of BRRRR

After the renovations, I had the property appraised. The new value? $105,000! I approached the bank for a 75% loan-to-value (LTV) mortgage, which means they gave me $79,000.

Since my total investment was $75,725, I not only recouped my entire investment but also walked away with an extra $3,275. Yep, I got paid to buy this property.

Lessons Learned

Here are a few takeaways from this journey:

  1. Don’t Fear the Ugly Properties: The ones everyone avoids are where the money is.
  2. Know Your Numbers: Always run comps and calculate potential income before diving in.
  3. Build Relationships: A good appraiser or contractor can make or break your deal.
  4. Think Long-Term: BRRRR is a marathon, not a sprint.
  5. Go Where the Deals Are: Don’t limit yourself to your local market.

Final Thoughts

My decision to invest in Saint John taught me a valuable lesson: The best deals often aren’t in your backyard. With the right systems, technology, and partners, you can build a thriving portfolio anywhere. By focusing on scalable deals and letting the numbers guide me, I’ve been able to grow my business without being tied to a single location.

Ready to Start Your Own BRRRR Journey?

If you’re feeling stuck in your local market, ask yourself: Are you limiting your potential? It’s a big world out there, and there are incredible opportunities waiting if you’re willing to look.

Got questions or want me to dive deeper into any part of the process? Drop a comment, and let’s chat!

Check out this video for a more in-depth look at the BRRRR method for this exact deal: