Flipping is a type of investing strategy where you purchase a property, add value to the place, and then sell it to make a profit.

For example, let’s take a look at a flipping scenario: a buyer purchases a $250,000 property, puts $35,000 into home renovations, and then sells it for $350,000 in just short of 2 months. In this example, the investor would have made roughly $50,000 after paying real estate and lawyer fees and paying any holding expenses.

This is a strategy that makes an investor quick cash in a short period.

A turnkey property is an investment strategy where an investor can purchase a property and immediately rent it out, hence the name “turn-key”.

Let’s take a look at a type 2 scenario: an investor buys a property for $350,000 and puts down 20% to bypass CMHC fees (the minimum % down for a property is 5%). A monthly mortgage payment along with all of the home expenses (*utilities, fire insurance, and taxes) is approximately $1,600. The investor rents the property out for $1,800. They would only be netting $200/month however in the long run, they are building equity! Enough equity so that in 5-10 years, a parent would have more than enough cash to put a child through an entire University degree just by selling the property.

BRRRR stands for Buy, Rehab, Rent, Refinance, and Repeat. “This is an investment method that enables a buyer to borrow against the value of the property when it’s at its highest. This method, if done correctly, could help one recover most if not all the money invested in the property.” -David Greene.

This strategy involves a little more planning and details. Type 2 and 3 are strategies that build equity over a long period of time.

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