Talk about a sweet BRRR deal where we pull out most of our money after refinance of the new value and reive high return on our ash invested
A client approached us looking for a great deal and had around £80,000 to put to work with us we got to work and came across a deal on the modern method of auction and secured it.
I had previously sourced a few flip deals close by and knew the area well and knew it would be worth once renovated and refurbished to a great standard anywhere from £87,000.00 – £95,000.00
The figures and costs and video and photos are presented down below.
Purchase price £56,500
modern method Auction cost £6,300
SDLT £1,695
solicitor cost £662
total £2,357 + 6,300 + 56,500 = £65,157.00 to get the keys
Refurbishment and all other costs £17,500
Total cash in £82,657
After build works are done we refinance the property with its new value of £91,000 where we are given 75% based on a BTL mortgage with an interest-only of 3%. So we are given £68,000 75% of £91,000
Now in terms of equity, we have £68,000 – 82,652 = £14,652 is left cash in the deal and you have made £8,098 equity in the property.
with £14,652 cash invested we have the property rented out for £555 pcm £6,660 pa
interest-only mortgage £95 pm – 12% rental management £67 – put aside 12% for maintenance £67
expenses £228 £555 rent -£228 = £327 profit pm x 12 yearly £3,924 profit!
£3,924 / £14,652 = 26% ROI !!!!
and yearly capital growth of 2% pa and the refinance is Tax-free so leaving £68,000 to invest in another property investment with ARM Empire.
This is also a great example of why it is better to keep some houses and why it is better to flip others based on the return.
This is done entirely hands-off and hassle-free 07909613771
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