BMV BTL House - Lancashire

BMV BTL Tenanted House - Lancashire

Key property details:
- Strategy: Buy to Let, SA, Flip
- Traditional mid terrace 2-bedroom house
- Freehold
- 55sqm
- EPC E
- Council tax band A
- Tenanted
- No chain

This mid-terraced house is currently tenanted and is offered for auction with a starting price of £64,500 and with annual rent of £7500 shows a potential yield of nearly 12% gross from day one. However the property would benefit from some updating as the EPC is on the lower limit for renting. A small investment into the property of circa £8000 would bring the property to a good modern standard and there would also be an opportunity to improve the EPC score. The GDV could potentially rise to £85,000 along with a potential rental uplift too.

The financials:
▪ Purchase price: £64,500
▪ Refurb costs: £8,800
▪ GDV: £85,000
▪ Annual profit: £5,531
▪ ROCE: 30%
▪ Yield: 10%

▪ Stamp duty: £3,225
▪ Sourcing fee: £4,000+vat
▪ Legal fees estimate: £1,000
▪ Survey estimate: £500
▪ Insurance estimate: £350
▪ Renovations estimate: £8,000

▪ Total: £81,575.00

▪ Max. potential gross rent: £8,400
▪ Mortgage Interest @ new Valuation £85000: 75%@4.5% - £2,869
▪ Money left in after refinance: £17,825.00

Representing an all money out deal just after 3 years!

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