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Buy Renovate Refinance: In a Nutshell

Updated: Jan 27, 2023

BRR stands for Buy Renovate Refinance, which basically means that you buy the property with cash on hand, undertake refurbishment work to bring it up to scratch, refinance your loan at the new value after the work is completed and then start renting out your property.

So, how does Buy, Renovate, Refinance work? Here are the steps:

Step 1: Find a property that needs renovations in an affluent area.

You look for a knackered property in need of some love! This property needs to be in an area with good DUV (Done up values). It also needs to be purchased at a significant discount. Remember, you make your money when you buy!

Image shows a rundown property with the potential to have a high value after renovations
Look for a Property in need of some love in a good area.

You secure this property for £65k and purchase it in cash. Assuming you spend £5k on other costs such as legals and surveys etc. You have now outlaid £70k in total.

Step 2: Renovate the property to increase its value.

You now own the property and need to remove the swirly carpets and net curtains. So you spend £15k on renovations. This now takes the property up to the standards of the rest of the lovely houses in the area.

You have now spent a total of £75k + £15k = £90k

Step 3: Apply for a mortgage on the property with the new value

You check the comparables in the area and identify that your property is now worth £110k. So you apply for a BTL mortgage on the property.

Example mortgage particulars for this could be, 3% Interest only and a 75% LTV (Loan to Value).

This means you would receive a loan of £110k x 75% = £82.5k Given that you have only spent £90k on the property in total, you have just received £82.5k back.

So you have only left £90k - £82.5k = £7.5k in the deal.

You've just bought a house for £7.5k!!

Remember, you make your money when you buy!

Step 4: Rent Out the Property

"FOR RENT" sign

Your monthly payments would be:

£82.5k x 3% = £206 per month

So, you now rent the property out at £600 per month: £600 - £206 = £394

and you're now making £400 per month from a seven grand investment.

Step 5: Rinse and Repeat by recycling your capital.

Now that you've regained back your capital through the remortgage, use that to find your investment property. The cycle continues...


BRR is a popular strategy for property investing because it allows you to spend less money upfront. By following the steps above, you can keep recycling your capital to increase your portfolio with minimal amount spent!

How can Property Store help?

Property Store is a Property Management CRM Software designed by property investors for property investors. If the BRR method in property sounds too complicated, we have made it incredibly simple to work out the numbers and manage your properties within our Landlord Property Management CRM Software! We've got your first week free so that you can test things out before you fully commit.


Want a free trial of Property Store? Sign up now and get your first week free!

Not convinced yet? Click here to attend our free webinar where we will show you how Property Store can support you in your property investing business.

Want to see more? Head over to our features page where we recorded a live demo that you can watch to see Property Store in action.

Got a question? Check out our Frequently Asked Questions Page for answers to common concerns.


Want to check out other strategies? Head on over to our blog about property investing strategies so that you can decide which strategy is for you!


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