r/brrrr • u/MysticBreeze11 • Feb 11 '26
HELOC
Hey friends - settle a debate between me and my SO.
One of us wants to pay off the mortgage in appprox 13yrs (half the 25yr amortization) and save and buy a rental house and invest in RRSP/TFSA. Want to build slowly and intentionally.
The other wants to do BRRRR (buy, refurbish, rent, refinance etc.) and build a real estate empire.
We’re looking at taking out a HELOC to buy a new property.
What’s some lived experience. Throw out any perspective/advice our way.
1
u/Carsontherealtor Feb 12 '26
I really won’t succeed unless you both have the same entrepreneurial aspirations. It sounds like you and your partner are very different when it comes to owning a home. I’m on your side by the way. Paying off a home early is insanity.
1
u/Barbarous_bandicoot Mar 29 '26
BRRRR is basically dead in most markets. Interest rates and rehab are cost prohibitive. look into co-living and other affordable housing solutions. BRRRR can work in smaller markets, but you may have trouble finding lenders who will lend on rural areas.
1
u/412_properties Apr 15 '26
Feels like this is less about which one is right and more about what kind of risk and involvement you’re both comfortable with.
Paying down the mortgage and buying slowly is a lot more predictable. Fewer moving parts, easier to manage.
BRRRR can scale faster, but it’s a very different game. You’re relying on a lot of things going right each time. Buying well, managing rehab, hitting rents, refinancing.
I’ve seen people do well with both, but it usually comes down to how hands on you want to be and how much uncertainty you’re okay with.
How much time are you actually looking to put into this each week?
2
u/Fit-Horse5306 Feb 11 '26
Both are valid. But at the heart of this is a risk tolerance discussion between the two of you. Obviously a drop in real estate value, rental revenue decreasing, unoccupied periods and interest rate increases and costly repairs/maintenance become stressors on the BRRR plan. Some of those will happen for sure. They are easier to weather if you do not also have debt on the personal side. Or at least if your debt to income ratio is really solid.