What does BRR stand for in property?

BRR is an abbreviation and stands for “Buy Renovate Rent”. Its a type of property investment strategy were you buy properties that require renovation. Once the refurbishment is complete, you then rent out the property and collect rent.

Read our full article here on the BRR property investment strategy:

Buy Renovate Rent Refinance | B.R.R.R. Property Investment Strategy

How A Buy Renovate Rent Purchase Is Financed

A property needing renovation is usually unmortgageable on a standard term facility. If it has no working kitchen or bathroom, or the condition is poor enough that a valuer marks it down, most buy to let lenders will decline it until the work is done.

That is why most BRR purchases start with a bridging loan, which funds the purchase and often the works, and then refinance onto a buy to let mortgage once the property is finished and let.

The timing matters. Most lenders apply a six month rule and will lend against the price you paid rather than the improved value until you have owned the property for six months. A smaller group will refinance at the new value sooner where the refurbishment is genuine and properly evidenced. See BRRRR for how the full buy, refurbish, rent, refinance, repeat cycle is funded.

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