How To Find BRRRR Properties In 2024 [10 Easy Steps]

The BRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy is a popular real estate investment method in the UK. 

In this guide, I covered 10 practical ways to find BRRR properties in 2024 and beyond.

This includes methods from property auctions to local authority websites, to help you build a profitable real estate portfolio.

What is BRRRR?

BRRRR is the abbreviation of a real estate property investment strategy. Here,

• B= Buy
• R= Rehab/ Renovate
• R= Rent
• R= Refinance
• R= Repeat 

What is the BRRRR Strategy?

In a BRRRR strategy, you first acquire an undervalued or distressed property that could be appraised in value after renovation. 

After acquiring a property, you renovate it to make it habitable for tenants and lease it out. The rental income you get from this helps you pay the ongoing expenses like mortgage, maintenance, etc. 

Once the property’s value is increased, you refinance the mortgage. This should pull out a significant amount of your initial investment and give you additional equity. 

Now, with the capital freed up from the refinancing, you can move on to acquiring another property and repeat the same cycle of renovating and renting.

To put it in perspective, let’s say you plan to buy a house worth £150,000. You make a 25% deposit out of your pocket, that is £37,500, and renovation would cost you an additional £30,000.

So your initial investment becomes £37,500+ £30,000= £67,500. 

With additional legal fees and miscellaneous costs, let’s assume it goes to £70,000. You put it on rent for £1,500-1,000 per month, which helps you pay your mortgage and additional ongoing costs like maintenance. 

In the refinance stage, let’s say your post-renovation valuation is £200,000. Your current loan-to-value (LTV) ratio is 75%. 

So, the amount you could finance would be £200,000 x 75% = £150,000.

Now, if your initial mortgage was £112,500 (75% of £150,000), refinancing at £150,000 would not only cover your initial mortgage (£112,500) but will also leave you with an additional £37,500 (£150,000- £112,500), which pulls out the entire initial deposit that you made from your pocket. 

10 methods on How to find BRRRR properties

Here’s a mix of some new and old methods of spotting profitable BRRR properties for investment. 

1. Keep an Eye On Auction Sites

Property auctions can be a good place to find potential BRRR investments. You can find properties below market value that might require renovation, which is perfect for adding value. Here’s how to find and acquire them. 

• Go to popular auction platforms:  Explore established auction houses like Allsop & Co., Countrywide Property Auctions, etc. They list a variety of properties, including potential BRRR finds.
• Do your own research: Before bidding, research the local market thoroughly. Understand average rental yields and renovation costs in the area. 
• Consider the hidden costs: Factor in auction fees (typically 2-3% of the purchase price) and potential refurbishment costs when determining your maximum bid.

For example, You find a two-bedroom terrace house in Manchester listed at a starting bid of £150,000 at an auction. After researching the area, you find that similar properties rent for around £800 per month, and a renovation budget of £20,000 would bring it up to standard. Here, the potential benefits are clear:

• Estimated Rental Income: £800 x 12 months = £9,600 per year
• Increased Value: Post-renovation value could be around £200,000

Doing this calculation is a must to ensure that you are not losing money or buying a property that won’t work well for a BRRR investment method. 

If you want to know how to keep your BRRR investments profitable all the time, we have covered all the rules you need to follow. 

2. Stay In Touch With Estate Agents

Real estate agents would obviously have insights into properties that will soon be open to market or are already present and good for BRRR investments. So you can build relationships with such agents and learn about investment opportunities. 

However, make sure you target the right agents. They should be knowledgeable about areas with good rental yields and a steady property market. Once you find them, convey your interest in BRRR properties and that you’re a serious cash buyer willing to move quickly.

Remember that they might ask for a commission fee to find you the right property. So keep that cost in mind. 

Here are some steps to execute this idea.

1. To find potential agents, use online directories like Property Ombudsman or Zoopla. You can get their contact number and email addresses from there. 

Here’s the screenshot where you can see Zoopla in action to find properties:

In fact, you can get additional details such as property description, listing and asking price of the property.

An example:

2. Once you have that, you can either call them or send them a professional email that outlines your goals and interests in BRRR. 
3. During initial communication, discuss the agent’s commission fee structure for finding BRRR properties.
4. If you find a highly compatible agent, consider a Sole Agency Agreement for a specific timeframe. This gives you exclusive access to their BRRR opportunities for a set period.

3. Hire Property Investing Agencies

Consider partnering with a property investment agency specializing in BRRR deals. These agencies can help you with their network of lenders, contractors, and direct sellers to source profitable investment opportunities.

Consider going with agencies that have the qualities mentioned below.

• Special focus on BRRR strategy.
• An extensive network of lenders, contracts, and tenants.
• A management process to handle various aspects of BRRR.

👉 At Pluxa Property, we specialize in BRRRR investments. We source discounted properties with value-add potential, manage renovations, guide refinancing, and handle tenant placement.

Our team of experts helps you build your property portfolio efficiently, aiming to maximize your returns through the BRRRR (Buy, Refurbish, Refinance, Rent, Repeat) strategy in the UK market.

4. Search Repossessed Property Sites 

Repossessed properties are also known as ‘mortgaged in possession’ properties. These can be great options for BRRR investments as the lenders often sell the properties below market value just to get their money back as soon as possible.

But they often use bidding to sell these properties, so be prepared with your bidding strategies. 

To find such biddings, you can visit websites like Repossessed Houses For Sale, UK Distressed Property, or even UK Auction List, where repossessed properties in the UK are often listed. 

Another one:

5. Search Local Authority Websites

Local authority websites can also be a good place to do your online research for properties suitable for BRRR investment, as they are often listed with a good discount. 

Tip: Use the UK Government’s Find a Local Council website to identify local authorities within your target areas.

Each local authority website might have a dedicated section for property sales. Look for terms like “council house sales,” “property auctions,” or “surplus assets.”

You could also look for brownfield lands, as they are sold at highly discounted rates and build your own property on it on a budget little more than the renovation cost. For this search for terms like “brownfield regeneration” or “land for sale.”

However, know that projects on brownfield lands often require you to go through a rigorous process of acquiring permissions and maintaining protocols.  

6. Network With Investors

If you are just starting as a property investor, be it BRRR or any other real estate investment method, networking will always help. 

If you seem to struggle with finding the right people, look for seminars, workshops or networking events that are focused on property investment in the UK. 

Tip:  Keep an eye on websites like NRLA to learn about such events. 

You can also join online communities or groups on platforms like Facebook and LinkedIn dedicated to property investment and find valuable connections from there. 

Also, don’t forget to reach out to the experienced property investors in your area and build a relationship with them. If you manage to have a good bond, they might even share details of off-the-market deals or upcoming developments that are suitable for the BRRR strategy. 

7. Driving Thorugh Neighbourhood

If you want a more hands-on experience, you can try the drive-through method, where you drive through a selected neighbourhood to spot properties that align with your BRRR strategy and directly reach out to the property owners. 

For that, you first need to sort things out. The first thing on the list would be the neighbourhood criteria, like good rental yields, lower vacancy rates, etc. 

Then, you need to consider your budget, such as how much you are willing to spend on acquisition and renovation. 

Once these two checklists are made, you can move on to property hunting. Follow these two steps to be more efficient. 

1. Observe the general condition of the properties. Are there houses with overgrown gardens, peeling paint, or boarded-up windows? These could be potential fixer-uppers. Look for “for sale” signs, which might indicate properties that haven’t yet hit the open market.
2. Once you spot a property with potential, note down the address and research it online. Public land registry resources can reveal ownership details. 

3. Once you have their contact details, consider sending a polite, handwritten letter to the owner expressing your interest in purchasing the property if they’re thinking of selling it. If you offer them an all-cash payment, the offer might seem more lucrative to the owner and can influence the decision in your favour. 

This age-old technique is a great method for finding hidden gems that haven’t hit the market yet, potentially leading to better deals. 

However, make sure you respect residents’ privacy. Don’t trespass on properties. This method is time-consuming and requires patience. It might not always yield immediate results.

8. Post Bandit Signs

Bandit signs or bandit boards are a traditional way of advertising your interest in buying properties. For this method, you craft a clear and simple message., something along the lines of  “We Buy Houses” or “Cash Buyer for Your Property”, along with your contact details and post them in your desired neighbourhood. 

For effective results, target neighbourhoods with a mix of older properties and good rental yields. Place signs near busy roads or intersections with high visibility.

However, while posting the signs ensure that you are complying with local council regulations regarding size, placement, and duration. In case you don’t do that, there’s a high chance that your signs will be taken down by authorities. 

The bandit signs can be a cost-effective way to reach motivated sellers directly without spending much time. 

9. Go To Estate Sales 

Estate sales, also known as “house clearances” or “probate sales,” can be a good place to find profitable BRRR properties. These sales occur when a property needs to be emptied and sold quickly, often due to inheritance or relocation.

To find such sales, you can look for advertisements in local newspapers, online classifieds, or estate sale websites. However, remember that these sales can be competitive, especially for properties in good condition. So, if you are aware of any such sale, we recommend you visit the property a day prior to assess its condition and prepare yourself for the sale the next day. 

10. Get Insights From Banks And Lenders

If you have connections with banks and lenders, you can find out about many properties that are soon going to hit the market due to loan defaults or cases like that. 

Banks often end up owning properties when borrowers default on mortgages, and they are turned into repossessed properties.  (We have already discussed why repossessed properties are a great option for the BRRR strategy.) 

The same goes for lenders. Apart from repossessed properties, lenders often have good connections with property developers, estate agents and even motivated sellers. Keeping them in your circle can help you learn about off-the-market BRRR properties that you wouldn’t find elsewhere. 

Is the BRRRR method profitable in 2024 in the UK?

Yes, the BRRR method will still be profitable in 2024 for the UK market.  There are many reasons to back this claim. 

To start with, according to reports, the gross rental yield in the UK has been increasing over the past three quarters and in Q1 of 2024, it hit 6.1%. This indicates that a £100,000 property could generate £6,100 annually. If you successfully appraise your property after the acquisition and renovation to this value, you could easily make this or more per year. 

This money could easily pay off your mortgage if you do a 30% downpayment and finance the rest.  Also, we must not forget that the idea of the BRRR strategy is to grow wealth over time. So, the more properties you acquire, the steadier your income becomes.  

Although the current rental market in the UK faced a dip, till 2028, according to reports it is expected to face almost an 18% growth in a steady manner. 

How to calculate BRRRR?

To calculate BRRR investment that generates a cash flow, you can follow the 1% rule. According to this rule, your monthly rent should cover 1% of the total investment of your property. 

So to calculate how much you should be investing in a BRRR property, you can simply backtrack from there. 

Start by researching the average rental yield of the property’s neighbourhood. Look for properties that can be compared to the property you are eyeing on. Once you get a quote from there, you can start calculating how much you should invest in acquiring and renovating that property. 

For example, if the rental yield is £900 per month, the maximum you can invest in that property to break even would be £90k. If you can get it done for a lower price, it would be even more favourable for you.  

For the refinancing stage, you can again take reference from the market price going for similar properties in your neighbourhood. 

How Pluxa Property helps you find BRRRR opportunities

Investing in BRRR properties is definitely time-consuming, and it is common for people to struggle to find their entry point, especially if they already don’t own a property.  

However, even after you enter the process, there are several ongoing things that you need to manage as a BRRR property owner. 

To name a few- there is managing renovations in a cost-effective way, finding the right tenant, tenant management, property management etc etc. and the more properties you acquire, these responsibilities keep multiplying. 

Managing all these single-handedly can definitely put a cap on your ability to grow exponentially. 

This is where Pluxa Property can help you. Our services cater to both new and seasoned BRRR investors. Our services include:

• Property finding,
• Property renovation, 
• Tenant finding and management,
• Property management

So, if you feel we can be of help, feel free to get in touch with us.