For Property 5, I wanted to try a refurb to rent, using the BRR model (Buy, Refurbish, Refinance). This is a much cheaper property than previously bought, and gives a much better yield when it is refinanced. Here are the stats of the property bought.
| Price | £43K |
|---|---|
| Refurb | £12K |
| Value after refurb | £65K (at least) |
| Mortgage (after 6 months) | £48,750@ 3.2% = £130 per month |
| Deposit (money left in after refinance) |
£6,250 |
| Rent | £450 per month |
| Management | 9%+VAT = £49.50 |
| Insurance | £13 per month |
| Cashflow | 450 – 49.50 (management) – 130 (mortgage) – £13 (insurance) = + £257.50 per month |
| Return on Cash |
3090/6250 = 49% |
This is great, I will get a similar return to my previous properties, with only 6.2K invested, giving a 50% return. Problem is … finding lots of these deals is not so easy, and there is a LOT more work involved.
Work included a new kitchen, new central heating, new double glazing, and plastering throughout. Basically a full refurb. Once the refurb is complete I will give more photos.
Purchase condition
Property Seeds 