🏡 How We Turned a £65,000 Property into a Profitable B&B

The UK property market is full of potential — but to truly unlock it, you need more than just savings.

You need a strategy.

For us, that strategy was BRRR: Buy, Refurbish, Refinance, Rent.

This is the story of how we bought a rundown house for £65,000, turned it into a stylish

short-term rental, and pulled out every penny we invested — while still retaining ownership and monthly income. If you’ve ever wondered how to start in property investment without tying up your cash forever, this article is for you.

The Purchase: Spotting the Right Opportunity

When we started looking for our first BRRR deal, we weren’t searching for the perfect house — we were looking for the perfect opportunity.

The property we eventually purchased wasn’t glamorous. It was tired, outdated, and in clear need of a full renovation. But beneath the worn-out carpets and dated wallpaper, it had exactly what we were looking for:

• ✅ A solid brick structure

• ✅ No major structural issues

• ✅ A layout that could be easily improved

• ✅ A location with proven demand for short-stay rentals

What stood out most was its potential to add value. It was the kind of house traditional buyers might overlook, but as investors, we saw it as a blank canvas.

We secured the property for £65,000, which was below market value for the area — giving us immediate equity potential. To finance the purchase, we used a 75% loan-to-value buy-to-let mortgage, meaning we only needed to put down a £16,250 deposit.

In addition to the deposit, we also had to factor in stamp duty, which for additional properties is charged at 3% of the purchase price. That came to an additional £1,950. It’s a cost that can easily be overlooked, but it’s essential to include it in your financial planning from day one.

Buying well is the foundation of any successful BRRR project. This deal ticked all the boxes: it was affordable, financeable, and most importantly, it left us room to refurbish and significantly uplift the property's value.

Step one: Walking into the project

The Renovation: Adding Real Value

This was the hardest part of the entire project. To save money, we decided to do most of the work ourselves. We took on the painting, flooring, and decorating — but left the more complex jobs like electrics, plumbing, and plastering to the professionals.

Doing it this way helped us stay on budget while still creating a well-designed space tailored for short-stay guests. We focused on comfort, practicality, and style — all the things travellers look for in a great B&B.

The total cost for the renovation and staging came to £15,000, which included materials, furnishings, and the trades we hired for the specialist work.

During the renovation, we invited a few local estate agents to view the property and give us an estimated valuation. Even though the house was still a work in progress, they valued it between £100,000 and £110,000, which already placed us in a strong position — we could see that we had created equity even before finishing the project.

However, it became clear that the lack of staging was holding the valuation back. The property wasn’t fully finished, and it definitely wasn’t dressed to show its potential. This experience highlighted just how much of an impact proper staging can have on the perceived and actual value of a property. A finished, well-presented home not only appeals to future guests — it also helps agents and surveyors see the full value you've created.

What a Renovation Can Do… 💥 Valued at £120K!

Styled, Staged, and Shot 🎯 This Is the Finished Product

After about eight weeks of what felt like a full-time job — working on the property from early morning until late at night — we finally got it finished.

Once the property was ready, we started thinking about our next move.

Should we sell it and cash in on the profit?

Or stick with our original plan and turn it into an Airbnb?

At first, we were tempted to sell — especially after seeing the value we’d added. We invited estate agents over again, this time with the house fully cleaned, staged, and photo-ready. That made a huge difference. The feedback was great, and we were told the property could go on the market for offers over £120,000!!! That was exciting

In the end, we decided to stick with our original idea and keep the property as a short-term rental. We moved forward with the remortgage, and the bank’s official valuation came back at £120,000, just like the estate agents predicted. That confirmed we were on the right track and gave us the green light to move ahead with refinancing.

That was a A Win-Win Investment

Looking back, this project was a huge learning experience — but also a clear success. Here’s how the numbers stacked up:

💷 The Investment

• Purchase Price: £65,000

• Deposit (25%): £16,250

• Stamp Duty (3%): £1,950

• Legal & Other Fees: £3,750

• Renovation & Staging: £15,000

• 🔹 Total Investment: £36,950

• 
  

🏦 The Refinance

• Final Valuation: £120,000

• New Mortgage (75% LTV): £90,000

• Original Mortgage Paid Off: £48,750

• Solicitors: £1,250

• 🔹 Money Pulled Out: £40,000

💡 The Result

• We got all of our money back — and then some.

• Created over £30,000 in equity

• Set up a stylish B&B that’s now generating monthly income

• Recycled our capital, allowing us to move onto the next investment

The best part? This property ended up being completely free — no money left in, plus £4,300 extra cash pulled out after covering all costs. And now, it continues to bring us around £900 a month in profit through short-term bookings.

Now, if you’re thinking:“Did they already have all the money saved for this investment?” The answer is no.

We started with a vision, not a full bank account. We found ways to structure the deal, take strategic steps, and grow as we went — and if we can do it, so can you.

If you’re curious about how it works or you’re thinking of doing something similar, feel free to drop us a message.

Contact Us

We are more than happy to share what We’ve learned and help however we can. 🙌

Timeline:

Property purchased in June 2024 and successfully refinanced in January 2025 — just six months from start to finish.