All money out deal
An all money out deal is a property investment outcome where a landlord recovers all of their invested cash, the deposit, refurbishment costs and fees, by refinancing the property once its value has risen, leaving none of their own money in the deal. It is the ideal result of a buy, refurbish, refinance, rent (BRRR) project. The higher post-works valuation supports a larger mortgage, and the funds released repay the original capital so it can be recycled into the next purchase.
How an all money out deal works
The strategy runs in a set order. You buy a property below market value, usually one that needs work, often funded with short-term finance such as a bridging loan. You refurbish it to force an increase in value, then refinance onto a longer-term buy-to-let mortgage based on the property's value after the works, not the original purchase price. If the new loan releases enough to clear the bridging finance and return your deposit and costs, you have pulled all your money out. You then let the property, which produces rental income while you redeploy the recovered capital. From working with self-managing landlords across the UK, a genuine all money out deal is less common than property training courses suggest, because refinance valuations rarely match the optimistic figure used at the planning stage.
The maths: after-repair value and the 70% rule
Whether the money comes out depends on the after-repair value (ARV), the price the property should achieve once refurbished. A buy-to-let lender typically advances up to about 75% of that value, so the deal only fully recycles if your total outlay stays below what the refinance returns. Investors commonly apply the 70% rule as a screen, keeping the purchase price plus refurbishment and costs at or below roughly 70% of the ARV, which leaves a margin for fees and a cautious valuation. You can model the refinance against the after-repair value with our buy-to-let mortgage calculator before committing.
When money is left in
The money does not always come fully out. If the refinance valuation comes in below your ARV estimate, the refurbishment runs over budget, or the wider market softens, the new mortgage releases less than planned and some of your capital stays in the property. This is a money left in deal, and it is not necessarily a poor one: a property that still produces strong rental income and holds equity can be a sound investment even with capital tied up. Landlords using August who run refurbishment projects tell us the deals that work are the ones underwritten conservatively, with a deliberate buffer for a down valuation rather than a best-case ARV.
Tax and finance considerations
The cash released by a refinance is borrowing rather than income, so it is not itself taxable. The trade-off is a larger loan and higher finance costs, and for individual landlords mortgage interest no longer reduces taxable profit directly. Instead, HMRC gives only a basic-rate tax reduction on finance costs, which lowers the real return on a heavily leveraged property for higher-rate taxpayers. Lenders also apply affordability and interest cover stress tests at the refinance stage, so a deal that works on paper at today's rate can fail if rates rise.
Frequently asked questions
Is an all money out deal the same as BRRR?
Not quite. BRRR is the strategy; an all money out deal is the best-case result of one, where the refinance returns 100% of your invested cash. A BRRR project that leaves some capital in the property is still a BRRR deal, just not an all money out one.
Can you always get all your money out?
No. It depends on the refinance valuation, the lender's loan-to-value limit, and how disciplined your purchase and refurbishment costs were. A conservative ARV estimate and a margin for a down valuation make a full recovery more likely.
Do you pay tax on the money you pull out?
No. Refinance proceeds are a loan, not income, so there is no income tax to pay on the cash released. The interest on the larger loan, however, attracts only basic-rate tax relief for individual landlords, so it affects your net return.
