| Purchase price | £45,000 |
| Refurbishment cost | £19,000 |
| Solicitor's fees & broker | £900 |
| Stamp Duty | £1,350 |
| Total | £66,250 |
|---|
Cashflow
| Property valuation | £65,000 |
| Mortgage loan @80% LTV | £48,750 |
| Mortgage payment (interest only/PCM) | £109 |
| Rent (PCM) | £1,430 |
| Lettings management - 15% (PCM) | £215 |
| Operating expenses | £286 |
| CASHFLOW (PCM) | £820 |
|---|
ROI & Yield
| Money left in | £17,500 |
| Cashflow (PA) | £8,856 |
| Return on investment (PA) | 50.6% |
| Gross Yield | 26% |
|---|
Coal Clough Lane – Burnley
This property is a secure investment as needed only minimal changes to the internal layout’. It could function as both a buy-to-let and a small HMO. The additional cost of renovation to HMO standard is £3,000 but should the HMO market become saturated, it could also be easily let as a 3 bedroomed property. The property would only need to exist as an HMO for 5 months in order to repay the additional cost of refurbishment.
