BMV BRRR in Cheshire

BMV 2-Bed Mid Terrace BRRR in Cheshire 

Strategy: BMV, Buy to Let BRRR or Flip
Traditional mid terrace house.

Key property details:
- Freehold
- 72 sqm
- EPC D
- Council tax band A
- Vacant possession
- No chain

This Mid Terraced House is In need of some refurbishment, hence the requirement to ideally buy with cash, with a view to refinance or sell once the works are complete.

Work has started and it would appear that somebody has started a live in renovation project and sadly the property seems to have been repossessed. It looks like the kitchen and bathroom need finishing and the whole place needs decorating, We have allowed a very generous £22,000 for this in our figures. In our opinion the rent achievable would be up to £800 PCM or a sale price of circa £100,000. Asking prices can be as high as £120,000 for this type of property the area, however they don't sell particularly quickly at those prices.

Please remember, we will view the property, negotiate the price and pursue the purchase process through to exchange on your behalf, if you wish. To move forward, you will need to sign our contract, provide proof of funds, and complete all necessary anti money laundering and identity checks. Should you require, after completion we are available to do site visits or full Project management for a further fee.

▪ Purchase price: £60,000
▪ GDV: £100,000
▪ Refurb costs: £22,000
▪ Annual profit: £5,850
▪ ROCE: 35%
▪ Yield: 10%

▪ Stamp duty: £3,000
▪ Sourcing fee: £3,000 ( special sub £125k price )
▪ Legal fees estimate: £1,000
▪ Survey and valuation estimate: £600
▪ Insurance estimate: £50 ( between exchange and completion )
▪ Annual gross rent: £9,600

Representing potentially all money out in just over 3 years!

No allowance has been made for, management fees, maintenance, insurance or void periods and conversely no calculation for capital appreciation or future rent increases have been made either as these are variable and unique to each tenancy / property.

Yield and ROCE explained.

Yield is the income divided by the amount spent, or sometimes the income divided by the purchase price, shown as a percentage to indicate a return benchmark.
ROCE, is return on capital employed, or also known as money left in after refinance. For a gross ROCE calculation divide the income by the money left in, express as a percentage.

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If you are interested in this or similar opportunities that you would like us to find for you please get in touch.