| 37 Elmwood Street | 39 Elmwood Street | 54 Athol Street North | |
|---|---|---|---|
| Purchase price | £45,000 | £45,000 | £10,000 |
| Refurbishment cost | £150 | £1,100 | £28,084 |
| Solicitor's fees | £900 | £900 | £900 |
| Stamp duty | £1,350 | £1,350 | £0 |
| TOTAL | £47,400 | £48,350 | £38,984 |
Cashflow
| 37 Elmwood Street | 39 Elmwood Street | 54 Athol Street North | |
|---|---|---|---|
| Property valuation | £45,000 | £45,000 | £55,000 |
| Mortgage loan | £33,750 | £33,750 | £41,250 |
| Mortgage payment (PCM) | £80 | £80 | £106 |
| Rent (PCM) | £368 | £368 | £475 |
| Lettings management - 8% (PCM) | £29 | £29 | £38 |
| Operating expenses | £33 | £33 | £33 |
| CASHFLOW (PCM) | £226 | £226 | £298 |
ROI & Yield
| Money left in | £25,984 |
| Cashflow (PA) | £9,000 |
| Return on investment (PA) | 34.6% |
| Gross Yield | 10.0% |
|---|
37 & 39 Elmwood Street
54 Athol Street North
The benefit of buying these three properties together was only £36,000 of actual cash was required to buy them all. Two were bought with mortgages so we applied all the negotiated discount from the three onto just one property. This meant 54 Athol street north was purchased for just £10,000. The collective ROI met my investment criteria and allowed me to use my funds wisely.
54 Athol Street North was a back to brick refurbishment with a total layout change of the 1st floor to create a 3rd bedroom, and has been let by the same family ever since.
A year later when both the Elmwood properties were vacant, we turned them into small HMOs to maximise their income. They both continue to run as 3-4 person HMOs.
