Two Profitable Exit Options for a 3 Bed Refurbishment
South West House Refurbishment:
We are currently reviewing a Below Market Value (BMV) 3 Bed home to buy and refurb and then we have two profitable exciting strategies for the exit and return of invested funds. The first option A would be a basic level refurbishment and then look to sell and the numbers are below.
Option B would be to look at a Higher Specification refurbishment and then I would advise renting the home as I feel this is best suited to a high level refurb and rent or sale. Do you know someone who would be interested in similar opportunities, if so, then please ask them to contact our team today.
3 Bed Property Headlines:
- The home was rented and requires new Windows, and TLC after years of poor Tenant care for the Property.
- The key reason I would suggest Clients opt for Option B is the fact the area is showing strong value rises. (One Bed flats are being rented at £1200 in the area.) This is because the area is under massive investment, with a new Arena, and a new Campus which will drive value growth for this property. Based on this Higher specification refurb the investor would gain excellent demand for renting the home or selling it after the refurb.
- I would buy with option B if this was my investment and rent for say 3 or 4 years and then sell it.
- So this fabulous 3 Bed Home is requiring a refurbishment, and would at a high speciation refurb achieve a rental of circa £1950pcm (£23K a yr).
The Headline Property Data:
Option A: Mid-level Refurb and Sell
- House purchase price £250k
- Estimated Legal/Refurb costs £36k
- Admin/3% Investor SD/Fees £9k
- Purchase and Refurb funds required from JV: £295k
- Forecast New Value after refurb £340k
- JV/Investor Profit £29k^ (ROI 9.9%)
Option B: Higher-level Refurb and Sell
- House purchase price £250k
- Legal/Refurb costs £65k
- Admin/3% Investor SD/Fees £9k
- Purchase and Refurb funds required from JV: £324k
- Property Fee to Berwyn Property £9k
- New Value after refurb £388k^
- If sold the Client could achieve £55k Profit. Client (JV) ROI Forecast 16.9%
- Rental £1950 PCM^. Gross Yield 7.22% Net Yield 7.07%
- This option is my preferred route of a long term Capital Appreciation project.
If you know someone interested in this project or similar Berwyn Property Services Property opportunities, then please ask them to contact our team today.
Telephone 074368 11200
Email Info@BerwynServices.co.uk
8-6pm M-Friday
PRS Number PRS040625
^&* % Rates and profit numbers, or time taken, or Rents quoted could change and prices are correct at time of reporting but could change without notice. Prices of the end sale and costs can change, and we always work hard to lower costs to maximize returns for both parties, you accept that the profit split could rise or fall with any agreement. The time taken to refurb and sell the home is beyond our control.
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