Case Study - 49% Return On Cash Invested

Here is a case study of a project we have undertaken that has enabled us to get a fantastic return on our cash invested of 49% and is generating in excess of ￡300 positive cash flow every month and will have paid for itself in 2 years.

Case Study: Buy, Refurb, Refinance - Hawthorn Road, Blackpool.

Property Type: 2 Bed Mid Terraced Property (Previously 3 bed)

History: The house was a probate property and was originally on the market for ￡75,000 however, it needed extensive work and after numerous viewings had failed to sell. After a reduction in the price we managed to negotiate a sale for ￡50,500.

• Purchase Price: ￡50,500
• Purchase Costs: ￡13,912 (includes deposit, stamp duty, legals and fees)
• Renovation Costs: ￡25,000
• Total Money Invested: ￡38,912

Refurbishment Details: Damp Course throughout ground floor, excavation of kitchen floor and new damp membrane and concrete floor, brand new heating system, full rewire, new kitchen, extend bathroom, create a third bedroom, plaster throughout, decoration, chimney stack pointed, slate roof repaired and new gutters)

What went well: The refurbishment was completed to a great standard and the teams on the job all worked well with the main contractor keeping in close contact and control of what was going on.

What could have gone better: Better understanding of the target market / end user as we over spent on the kitchen and bathroom however, we are happy to have provided a quality product that is above expectation.

What did we learn: We were involved heavily on the strip out and to speed things up we could have enlisted a specialist team which although would have cost us we could have completed the task project sooner. Understanding that opportunity cost is more important than cost.

Refinance:

• New Market Value: ￡90,000
• Cash out from refinance: ￡31,600
• Money Left in the deal: ￡7312
• Achievable Rent: ￡600
• Net monthly Cash Flow: ￡300.60
• Months before No Money Left In: 24
• Return on Capital Employed: 49%

Buy Refurb and Refinance is a great investment strategy but does come with it's challenges and with the right knowledge, experience and attitude it allows you to build a cash flow, refinance your money to reinvest and allow you to progress in your property journey.

We will source, project manage the refurbishment, handle the post refurbishment process allowing you to enjoy a complete hands free approach.

If you would like to work with us on our next venture and enjoy similar returns then get in touch and lets have an initial discussion - [email protected]