3 Property Deal – Burnley

Purchase & refurbishment costs

 37 Elmwood Street39 Elmwood Street54 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 Street39 Elmwood Street54 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 Yield10.0%

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.

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