Purchase price | £50,000 |
Refurbishment cost | £35,000 |
Solicitor's fees & broker | £1,150 |
Bridging cost | £2,752 |
TOTAL | £88,902 |
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Property valuation | £100,000 |
Mortgage loan @80% LTV | £75,000 |
Mortgage payment (interest only/PCM) | £241 |
Rent (PCM) | £1,755 |
Lettings management - 15% (PCM) | £263 |
Operating expenses | £438 |
CASHFLOW (PCM) | £813 |
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Money left in | £13,902 |
Cashflow (PA) | £8,780 |
Return on investment (PA) | 63% |
Gross Yield | 21% |
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56 Manchester Road
This terraced house has been converted into a stylish and modern 4 bedroomed HMO suitable for up to 6 residents in an area with a strong rental demand. The property has a return on investment calculated at 63% and a yield of 21% and is therefore a very stable investment property.