BMV BRRR/Flip in Cheshire

Property Description: Traditional semi detached 2 bedroom + loft

Key property details:
- Freehold
- 56 sqm
- EPC D
- Council tax band A
- Vacant possession
- No chain

This Cheshire semi is In need of some refurbishment, hence the requirement to ideally buy with cash, and a view to refinance or sell once the works are complete. In our opinion the rent achievable would be up to £800 PCM or a sale price of circa £125,000. Asking prices can be as high as £150,000 for this type of property the area, however they don't sell particularly quickly ( if at all ) at those prices. Please remember, we will view the property, negotiate the price and pursue the purchase through to exchange on your behalf, if you so wish. To move forward, you will need to sign our contract, provide proof of funds, and complete all necessary anti money laundering and identity checks. If you need funding, an SPV to hold your property or a managing agent to find tenants and collect rent then these can be arranged separately by Sourced head office in Warrington. Should you require, after completion we are available to do site visits or full Project management for a further fee.

The financials
▪ Purchase price: £80,000
▪ GDV: £125,000
▪ Refurb costs: £25,000
▪ Annual profit: £5,100
▪ ROCE: 48%
▪ Yield: 9%

▪ Stamp duty: £4,000
▪ Sourcing fee: £3,000 (special sub £125k price)
▪ Legal fees estimate: £1,000
▪ Survey and valuation estimate: £600
▪ Insurance estimate: £50 (between exchange and completion)

▪ Total: £113,650
▪ New value estimate: £120,000
▪ Max. potential gross rent: £9,600

Refinance Example
▪ Mortgage interest 75%: £4,500 (@ 5%)
▪ Money left in after refinance: £19,900
▪ ROCE: 48% gross
▪ ROCE: 26% after interest as shown above.

Representing potentially all money out in just under 4 years!
No allowance has been made for, management fees, maintenance, insurance or void periods and conversely no calculation for capital appreciation or future rent increases have been made either as these are variable and unique to each tenancy / property.

Yield and ROCE explained.
Yield is the income divided by the amount spent, or sometimes the income divided by the purchase price, shown as a percentage to indicate a return benchmark.
ROCE, is return on capital employed, or also known as money left in after refinance. For a gross ROCE calculation divide the income by the money left in, express as a percentage.


Sourced offer a comprehensive property wealth building package in one place;
Sourced Investment Agents - Sourcing investment opportunities for you,
Sourced Enterprise - Limited company and SPV formations with tax efficient portfolio structuring and accounting solution.
Sourced Finance - Access specialist property lending and mortgages, created for investors.
Sourced Lettings - Seamlessly integrate property management using our nationwide lettings management service.

If you are interested in this or similar opportunities that you would like us to find for you, please get in touch.

Sourced reference: 728957883274495