Definition
BRRR is commonly used to mean Buy, Refurbish, Rent, Refinance. It describes a strategy where works are used to increase the property value, then refinancing may release capital after completion.
How it affects a property deal
A BRRR deal depends on the relationship between purchase price, refurb cost, after-repair value, rent, finance cost and refinance terms. The strategy can improve capital recycling, but it is sensitive to valuation and cost assumptions.
What to check
- After-repair value evidence.
- Refurb budget and contingency.
- Bridge or phase finance cost.
- Rent after works.
- Refinance LTV, DSCR and lender criteria.