Breaking Down the Numbers: How a BRRR Still Works in 2025

The property market in 2025 is a very different landscape than it was even a few years ago. Rising build costs, tighter lending, and squeezed margins have led some to believe the Buy, Refurbish, Rent, Refinance (BRRR) model no longer works.

But the truth? When sourced properly and backed by disciplined due diligence, BRRR deals can still deliver excellent results, particularly for smaller investors looking for short-term value creation and a sustainable way to recycle capital.

At PropInvest, while our larger focus has shifted toward barn conversions and multi-unit developments, we continue to source BRRR opportunities for our investor network.

They remain a smart way to generate predictable returns and to grow portfolios without locking up capital for years at a time.

Here’s how it looks in practice, using a recent deal of ours.

Step 1: Buying at the Right Price

The foundation of any BRRR is acquisition. Pay too much at the front end, and the numbers won’t stack up, no matter how good the refurb looks.

• Purchase Price: £90,000

• Property Type: 2-bed terrace

• Condition: Tired but structurally sound, requiring a full internal refurb

We secured the property significantly below comparable sales because of its dated state and limited buyer competition.

That discount created the margin from day one.

Step 2: Refurbishment to Add Value

The refurb stage is where the uplift happens, but only when costs are tightly managed.

• Refurbishment Cost: £20,000

• Works Included:

  • New kitchen and bathroom

  • Full redecoration throughout

  • New flooring and carpets

  • Electrical and plumbing updates where needed

This brought the property up to modern rental and resale standards, adding both immediate and long-term value.

Step 3: Refinance Against the New Value

Once the refurb was complete, the property was revalued based on comparable, modernised stock in the area.

• GDV (Gross Development Value): £150,000

  
  

By refinancing against this uplifted value, investors could pull out most (if not all) of their initial capital while retaining ownership of an appreciating asset.

Step 4: Rental Income

The refurbished property was placed on the rental market, generating steady income.

• Monthly Rent: £750

• Annual Rental Income: £9,000

With the mortgage and running costs accounted for, this deal still delivered healthy cashflow alongside the equity created at refinance.

Step 5: The Numbers in Black and White

• Purchase Price: £90,000

• Refurb Costs: £20,000

• Total Spend: £110,000

• Revalued at: £150,000

• Equity Created: £40,000

For an investor, that means a 36% return on capital employed once refinanced, alongside an asset generating consistent monthly rental income.

Why BRRR Still Works in 2025

This example proves the point: BRRR is still alive and well, if you know where to look.

The challenges in today’s market mean:

• You need disciplined sourcing at below-market prices.

• You must budget refurbishment tightly and realistically.

• You can’t rely on generous surveyor valuations, your uplift must be defensible.

That’s where PropInvest comes in. Our network, experience, and sourcing criteria allow us to filter out the noise and deliver only those BRRR opportunities where the numbers stack up.

What Next?

For smaller investors, BRRR remains one of the most effective ways to scale quickly, recycle capital, and grow a portfolio without waiting years for returns.

At PropInvest, we continue to provide carefully sourced BRRR deals for investors who want transparency, clear numbers, and the reassurance that the deal has been fully stress-tested.

👉 If you’d like to see live BRRR opportunities in our pipeline, or learn how we source and structure them, get in touch with our team today.