Using Property Filter to find properties suitable for the Buy, Refurbish, Rent, Refinance (BRRR) model is a streamlined process. This strategy typically targets properties in need of modernization and with low Energy Performance Certificates (EPCs), such as E, F, or G ratings. Here's a guide on how to use Property Filter for this purpose:
Setting Up Your Lead Generator:
Access your Property Filter dashboard and select 'Leads Generator'.
Choose 'Add New Leads Generator' and input your initial search area, like 'L1' for Liverpool.
Add relevant local postcodes to your search area by clicking on them or using the 'Show More Nearest District Postcodes' option.
Selecting the BRRR Strategy Template:
Choose the BRRR strategy template, designed for properties less than four beds, houses, or bungalows with low EPC and specific keywords.
Name your lead generator for easy identification (e.g., 'LVP BRRR' for Liverpool BRRR).
Refining Your Search Criteria:
Edit your lead generator to refine the search. Set a maximum price cap, like £200,000.
Choose to focus on Freehold properties and exclude leaseholds and auctions.
Under the strategy section, adjust filters like property type and EPC ratings. Consider focusing on properties rated E to G for poor energy performance.
Using Advanced Filters Carefully:
In the advanced filters section, be cautious not to over-filter. Adjust filters like EPC ratings to target lower-performing properties.
Under 'Keywords', include relevant terms like 'unmodernized', 'cash buyer', or 'repossessed' that align with the BRRR strategy.
Reviewing Your Leads Inbox:
After refining your criteria, check the leads generated. You should now have a manageable list of highly motivated sellers.
Evaluate each lead's details, such as price history, EPC rating, and property condition. Look for significant price reductions or other signs of a motivated seller.
Example Lead Evaluation:
Consider a three-bedroom terrace listed initially at £115,000, reduced to £87,000, with an EPC rating of E and labeled for cash buyers. Investigate further for potential issues like dampness or structural problems, which might be why it's marked for cash buyers.
Utilizing Property Filter Resources:
Use the Success Base on the Property Filter website for more guidance, including orientation and success calls.
For personalized support, book a session with a Property Filter accredited coach.
By following these steps, you can efficiently use Property Filter to identify properties fitting the BRRR model, refine your search criteria, and prioritize leads for potential investment opportunities. Remember, the key is to balance specificity in your search with the flexibility to uncover hidden gems. Good luck with your property ventures!
Using Property Filter's deal calculator for the Buy, Refurbish, Rent, Refinance (BRRR) strategy is a straightforward and efficient way to analyse potential property deals. This tool is particularly useful for both long-term buy-to-let and Houses of Multiple Occupation (HMO) investments. Here's a guide on how to use the deal calculator for these types of deals:
Accessing the Deal Calculator:
Log into your Property Filter account and navigate to the property you are interested in.
Scroll down to find the 'Deal Calculator' section.
Click on 'Add a Deal Calculator' and select your investment strategy (e.g., BRRR).
Setting Up a Buy-to-Let BRRR Calculator:
Choose a relevant template (e.g., Buy to Let) and name your calculator (e.g., 'Exit 2').
Enter the asking price, deposit amount (usually 25%), stamp duty, conveyancing fees, loan fees, and refurbishment costs.
For the refinance section, input the anticipated property value after refurbishment (GDV) and the refinance mortgage amount (typically 75% of GDV).
Adjust the gross monthly rental income based on local market rates. Consider increasing this figure slightly if you're doing a high-quality refurbishment.
Include monthly operational costs like mortgage interest (adjust based on current rates), letting agent fees, voids, and bills.
Review the automatically calculated metrics such as cash needed, equity release, cash flow, ROI, and yields.
Setting Up an HMO BRRR Calculator:
Follow a similar process but choose the 'HMO Conversion' template.
Adjust the refurbishment costs and other costs as HMOs typically require more investment.
Input the number of rental units and the rent for each unit.
Adjust the mortgage interest rate and letting agent fees to reflect HMO-specific costs.
Review the automatically calculated metrics, ensuring positive cash flow and acceptable ROI.
Refining and Saving Your Calculations:
Once you've input all the figures, tweak them as needed to reflect different scenarios or updates in your deal analysis.
Save the calculator to refer back to it or duplicate it to create different scenarios.
Hover over the metric terms to understand how they are calculated.
Utilizing Property Filter Resources:
For detailed guidance on using the deal calculator, refer to the tutorial videos in the Property Filter success base.
If you require personalized support, you can book a one-to-one session with a Property Filter accredited coach.
By using Property Filter's deal calculator, you can efficiently analyse potential BRRR deals, both for single lets and HMOs, ensuring that you make informed investment decisions based on solid financial analysis. Good luck with your property investing journey!