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BRRR: buy, refurbish,
refinance, rent
BRRR lets you add value to a property, take most of your money back out, and keep it as a rental. Do BRRR deals yourself, source them for investors, or both, with the training, tools and support of Sourced.
What is BRRR?
One strategy that adds value, releases your money and keeps the property earning.
BRRR stands for buy, refurbish, refinance, rent. You buy a property below its potential value, refurbish it to add value, refinance it on the new higher value to pull out some or all of your money, then let it out.
Some people add a fifth R, repeat, because the money you take out funds the next deal, which is why it’s also called the BRRRR method. You may also see it described as renovate, refinance, rent.
How BRRR works,
step by step
Each step builds on the last. Get the buy and the refurb right, and the refinance does the rest.
Buy
A property that needs work, ideally below market value, in an area with good rental demand.
Refurbish
Add value with the right works, such as a new kitchen, bathroom or layout changes, on a tight budget.
Refinance
once the work is done, remortgage on the new, higher valuation and release cash.
Rent
Let the property to cover the new mortgage and produce monthly income. Then repeat.
A BRRR deal in numbers
An illustration of how money goes in, and how much can come back out. Every deal is different.
Purchase price: £100,000
Buying costs (stamp duty and fees): £8,000
Refurbishment: £25,000
New valuation after works: £160,000
Refinance at 75%: £120,000 released
Total cash in was £133,000. The refinance released £120,000, leaving about £13,000 in the deal, before finance costs, for a property worth £160,000 that’s let for £900 a month. Figures are illustrative.
Why investors use BRRR
BRRR helps you build a portfolio faster, because the same money can fund more than one deal.
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Recycle your money
Pull out most of your cash and use it again.
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Create equity
The refurbishment adds value you own from day one.
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Long-term income
Keep the property as a rental for monthly cash flow.
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Scale faster
Grow a portfolio without saving a new deposit every time.
Two ways to build a business around BRRR
Many Partners do both: they run their own BRRR deals and source deals for investors.
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Do BRRR deals yourself
Buy, refurbish, refinance and let properties for your own portfolio. You'll need capital or finance for the purchase and works, and a clear plan for the refinance.
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Source BRRR deals for investors
Find properties with the potential to add value, run the numbers and introduce them to investors for an agreed fee. You don't need to buy the property yourself
What makes a good BRRR deal?
The profit is made when you buy. These are the signs a property has room to add value.
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A clear discount
Bought below what it will be worth once refurbished.
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Cosmetic or layout work
Improvements that add value without major structural risk.
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Strong comparables
Recent sold prices for refurbished homes nearby that support the new valuation.
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Rental demand
Rent high enough to cover the refinanced mortgage comfortably.
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A realistic budget
Quotes before you buy, with a contingency of at least 10%.
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A mortgageable end product
The finished property must suit standard buy-to-let lenders.
What to check before you start a BRRR deal
BRRR works well when the numbers and timings are planned from the start.
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The six month ruleMany lenders won't refinance on a new valuation until you've owned the property for six months. Some specialist lenders will lend sooner. Plan your timings and finance around it.
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ValuationsThe refinance depends on the lender's valuation, not your estimate. Back your end value with comparable sold prices.
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Bridging financeMany BRRR purchases use short-term bridging finance, which is repaid by the refinance. Budget for its interest and fees.
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Rental coverLenders check that the rent covers the mortgage by a set margin. Make sure the rent works at the new loan size.
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Money left inYou won't always get all your money back. Plan for some to stay in the deal.
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Overspendingrefurbishment overruns are the most common way BRRR deals go wrong.
How Sourced Partners build BRRR deals
Everything you need to do BRRR deals yourself or source them for investors, with a team behind you.
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Practical training
Learn how to find, assess and run BRRR deals.
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Deal Analysts
Get the numbers checked, from the purchase price to the end valuation.
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Personal Business Manager
One-to-one support to keep your business moving.
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Investor network
Present BRRR deals to investors through the Sourced app and platform.
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In-house brokerage
Support with refinancing, subject to lender criteria.
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Property accounting
Accounting built in, so you don't need an external accountant.
Want to build BRRR deals with a team behind you?
Book a discovery call
Real Partners.
Real BRRR deals
- Bought for £95,000. Refurbished for £20,000. Revalued at £160,000.
- A tired two-bedroom terrace in Warrington, purchased for £95,000.
- A £20,000 refurbishment covering a new kitchen, bathroom, updated heating and redecoration throughout.
- At a £160,000 valuation, a 75% loan-to-value mortgage released £120,000.
- James kept the property and let it for £950 a month, adding his first refurbished rental to his portfolio.
Frequently asked questions
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Buy, refurbish, refinance, rent. Some people add a fifth R, repeat, and call it BRRRR.
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The same strategy as BRRR, with a fifth R for repeat. Once you’ve refinanced and let one property, you use the released money to start the next deal, building a portfolio over time.
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BRR is usually shorthand for BRRR: buy, refurbish, refinance, rent. It’s a way of adding value to a property, releasing your money through a refinance, and keeping the property as a rental.
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You buy a property that needs work, refurbish it to add value, refinance on the higher value to release cash, and let it out. The released cash can fund your next deal.
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Sometimes, but not always. It depends on the purchase price, refurbishment cost and new valuation. Plan for some money to stay in the deal.
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Many lenders require six months of ownership before they’ll lend on a new valuation. Some specialist lenders will refinance sooner.
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With a flip, you sell the property after the refurbishment. With BRRR, you refinance and keep it as a rental. Read our guide to property flipping.
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No. You can find BRRR deals for investors and earn a fee through property deal sourcing.
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It can be, when you buy at the right price and control refurbishment costs. Higher interest rates mean the rent must cover a bigger mortgage, so the numbers need checking carefully.
Ready to build a business around BRRR?
Book a discovery call-
Book a discovery call
Tell us what you want to build, whether that's your own BRRR portfolio, sourcing deals for investors, or both.
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Get to know us
See how the training, Deal Analysts and investor network work, and speak to Partners already doing it.
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Secure your franchise
If it's the right fit, we'll onboard you and help you start on your first BRRR opportunities.