Flips vs. BRRR: Which Strategy Makes Sense for Your First £50k?

For many new investors, the first big question isn’t whether property is the right asset class. It’s how to start. With £50k to put to work, should you aim for the quick turnaround of a flip, or the long-term recycling potential of a BRRR (Buy, Refurbish, Rent, Refinance)?

At PropInvest, we work with both strategies for different investor profiles.

Here’s an honest breakdown of how each works, the pros and cons, and what you should consider before making your choice.

The Flip: Fast Turnaround, Clear Returns

A flip is simple in theory: buy low, add value through renovation, and sell for a profit.

Why it works

• Speed of returns – money is typically tied up for 6–12 months, not years.

• Clear outcome – you buy, improve, sell, and move on.

• Beginner friendly – easier to explain and understand than longer, finance-heavy strategies.

What to watch out for

• Market dependency – your profit relies on selling at the right time. A dip in demand can erode margins.

• Tax treatment – profits are taxed as income rather than capital gains if you’re flipping regularly.

• One-off return – once the property is sold, the income stops. There’s no recurring cashflow.

Example

Purchase: £90k

Renovation: £20k

Sale: £150k

Profit: ~£30k before fees and tax

A great result for an investor who wants speed and clarity.

The BRRR: Long-Term Equity and Cashflow

The BRRR model goes a step further. You buy and refurbish, just like a flip, but instead of selling you rent the property out. Then you refinance at the new, higher valuation, pulling out most (or sometimes all) of your initial investment.

Why it works

• Recycles capital – you can use the same £50k multiple times over.

• Cashflow – the rental income provides a recurring return.

• Wealth building – the property remains in your portfolio, benefitting from future appreciation.

What to watch out for

• Time and complexity – refinancing takes longer than selling, and mortgage processes can be slow.

• Not always full extraction – you may not pull all of your £50k back out, especially if the market cools.

• Management burden – rentals require tenant management, compliance, and ongoing costs (unless outsourced).

Example

Purchase: £90k

Renovation: £20k

Revaluation: £150k

Mortgage @ 75% LTV = £112,500

Cash pulled out = £112,500 – mortgage costs – fees

Remaining cash left in deal = ~£5–10k

Monthly rental income: £650–£750

Instead of a lump-sum return, you’ve got equity growth plus cashflow, with most of your capital ready for the next deal.

So Which Strategy is Right for Your First £50k?

It depends on what you want most:

• Certainty and speed? A flip may be the better entry point. You’ll learn the ropes, see results fast, and reinvest profits into your next move.

  
  

• Long-term wealth? BRRR is hard to beat. Even if you leave some money in, you build a portfolio asset that pays you every month.

  
  

• Balanced approach? Many of our investors start with a flip to get comfortable, then graduate to BRRRs once they’ve seen the process in action.

  
  

The Value of Experience

At PropInvest, we’ve guided investors through both strategies. We know where the numbers stack, where they don’t, and how to structure deals that align with your risk appetite and goals.

Whether you’re considering your first £50k flip or want to explore BRRR projects that recycle capital for future growth, the key is simple: the deal must be sourced right.

Without the right purchase price and value-add opportunity, neither strategy works.

If you’d like to see live examples of flips and BRRR deals we’ve sourced, get in touch, we’re happy to share what works, what doesn’t, and how we can help you take your first confident step into property investment.

Contact us today.