How to Spot a BRRR Deal Before You Buy. A Practical UK Checklist
Most people think a BRRR deal is about buying cheap.
That belief is why so many investors get stuck after their first project.
A BRRR deal is not confirmed at purchase.
It is confirmed at refinance.
If the refinance fails, your capital stays trapped and the repeat part of BRRR dies.
This guide shows you how to spot a real BRRR deal before you buy, using evidence, not optimism.
What BRRR Actually Means
BRRR stands for:
Buy
Refurbish
Rent
Refinance
Repeat
The model only works if capital is recycled.
If your refinance does not release enough cash, you slow down or stop entirely.
At that point, you have bought a refurbishment project, not a BRRR deal.
The Core Mistake Most Investors Make
Most investors analyse BRRR deals forwards.
They start with:
• Purchase price
• Refurb ideas
• Potential uplift
That approach feels logical.
It is also dangerous.
Experienced investors run BRRR deals backwards.
They start at refinance.
The Five Checks Every BRRR Deal Must Pass
Before you book a viewing, answer these five questions clearly.
If you cannot, walk away.
1. End Value Must Be Proven, Not Hoped For
End value should be based on sold comparables, not asking prices.
Check:
• Same street or micro-location
• Same property type
• Similar size and layout
• Similar condition after works
Listings flatter numbers.
Sold prices protect you.
If you cannot evidence the end value, you are gambling.
2. True All-In Costs Must Be Known
Most “great” deals fail here.
Your all-in cost must include:
• Purchase price
• Stamp duty
• Legal fees
• Broker fees
• Survey costs
• Finance costs
• Refurb budget
• Contingency
• Utilities during works
• Insurance
• Compliance and certification
If you only track refurb cost, you do not know your deal.
3. Refinance Must Be Based on Reality
Your refinance assumptions must be based on:
• The lender you will actually use
• Their loan-to-value limits
• Their stress testing
• Their likely valuation approach
Ask yourself:
• What happens if the valuation comes in 5–10 percent lower
• Does the deal still work
If the deal only works with a perfect valuation, it is not a deal.
4. Rent Must Be Based on Demand
Rent is not what you hope to achieve.
Rent is what lets quickly to the right tenant.
Check:
• Local demand
• Comparable lets
• Tenant type
• Time to let
Then underwrite properly:
• Management
• Void periods
• Repairs
• Compliance costs
Optimistic rent assumptions quietly kill BRRR deals.
5. Cashflow Must Survive Boring Assumptions
Run worst-case, not best-case numbers.
Assume:
• Voids
• Management
• Repairs
• Delays
If the deal still works, you have resilience.
If it only works on perfect conditions, you have risk.
The Backwards BRRR Test
This is the simplest filter you can use.
Run every deal in this order:
End value from sold comparables
Likely refinance value
Cash returned to you
Realistic rent
Cashflow after boring costs
If you do not like the end result, do not buy the beginning.
This removes emotion.
It saves time.
It protects capital.
Common BRRR Mistakes to Avoid
• Buying because it feels discounted
• Using asking prices as comparables
• Ignoring finance costs
• Overestimating rent
• Assuming a kind valuation
• Skipping contingency
• Rushing because of excitement
Most BRRR failures are not dramatic.
They are small misses stacked together.
What to Do Next
If you are analysing BRRR deals right now, the fastest way to avoid mistakes is a second pair of eyes before you offer.
If you want a quick sense check on a deal, book a discovery call, and we can see how we can help you.
It is far cheaper to kill a bad deal early than fix one later.
About The Author: Estately
Estately helps UK professionals invest in property with clarity, structure, and discipline.
We actively invest using proven BRRR strategies, manage refurbishments end to end, and operate a fully compliant lettings business. Our guidance comes from live projects, real numbers, and decisions we make ourselves.
We work with investors who want to avoid costly mistakes, recycle capital properly, and build portfolios that stand up to scrutiny.