Bentley Road over £27,431 profit 28% ROI

The Property in Bentley Road was secured off-market and for a purchase price of £74,000 and was a property we had mi thoughts about if we should make into an HMO (house with multiple occupancies) or keep it as a residential Flip.

I decided to advise our investor to flip the property due to the fact of local knowledge in knowing the saturation of HMOs on the street and advice given from trustworthy local agents and we had negotiated the property below market value as properties in the same condition were selling for 80k – 85k without a refurbishment.

We had an estimated Refurbishment cost of £11,500

We had an end value presale estimate of £101,000 – £110,000 at the time of securing the property and when we got the builders in we had properties on the street selling for £119,000 – £133,000

We are still at the refurbishment stage for this property and have estimated the end sale to be above £124,000 once all works have been completed

Purchase Price = £74,000

Stamp Duty Land Tax (SDLT) = £2,220

Solicitor / legal costs = £849

ARM Empire Fee = £2,800

Total purchase cost to Investor £79,869

extra costs (council) = £300

Refurb cost (contractor) = £15,500 extra cost as the chimney was removed and needed roof works.

Estate Agency Sale price fee £900

Full cash invested by the investor = £96,569

We are still at the refurbishment stage for this property and have estimated the end sale to be above £125,000 once all works have been completed making a conservative flip cash profit of £27,431.00 a 28% Return on investment.

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Have Any Questions? Give me a call on 07909613771 or drop us an email on [email protected]

OUR FEE for this project was £2,800 We also provide a full management fee for an additional £2,000 if you want ARM Empire to manage the entire process.

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