Can I do BRR anywhere?

by | Dec 17, 2019 | BRR

Buy Refurb Refinance only works when the figures work in your favour.

This strategy won’t work where the done-up value of a house is too low.
E.g. A 2 bed terrace on a side road off County Road won’t usually work.

End Value is £55k and a full refurb could cost £12-14k, depending on how bad the house is.

So, work that backwards: £55k – £14k = £41k
If you do this, and buy a house for £41k, you will still leave £13,750 in the deal.

So you would actually need to be buying the house for £30k to make this strategy work.

And you won’t find many houses at that price in the right areas for rental, on the open market…