3 bed terrace, 6 months process from purchase completion to
3 bed buy to let in our home town of Chorley!
Facebook marketing and word of mouth with the offer of referral fees came into play on generating this lead. A local resident contacted us after seeing our Facebook post to let us know about an empty house, we then posted a letter and ta-da the phone rang, we viewed and agreed a figure that worked for us and seller. The purchase was straight forward and took around 3 months which is pretty standard at the present time of writing. We then gave the person who told us about this £500 referral fee as a thank you,
Refurbishment
The refurb was a big one with an estimate of £30,000 at the start of the project, this increased to being a total spend of £33,000, main reason was we took the decision to upgrade all skirting boards and architraves throughout whereas the initial plan was to keep current but it came clear we would get a better finish by replacing with new.
The refurb included getting a new gas connection as there was no previous gas supply which was a new experience for us but it was very simple. In addition we had new full central heating system, full rewire, plastering throughout, new kitchen, bathroom improvements and full decoration and carpets. The garden required a complete overhaul as you will see from images below. We had it cleared and provided a low maintenance tidy garden for tenants.
Although we went £3,000 over our initial budget we kept to timescales with the full refurb taking the estimated 10 weeks to complete. Fantastic effort by our team of trades!
Numbers
Purchase: £90,000
Stamp: £4,500
Refurb: £33,000
Legal and other costs: £1,500
As always funded by private funders, £130,000 in total, with a total of £7,800 interest paid for a 6 month period so we were all in this project for £137,800.
Refinance
Once refurbished we then submitted a mortgage application to allow us to release the funds invested.
New Value: £165,000
Loan To Value: 75%
Mortgage Funds Released: £123,750
Rent: £950
Overall a successful project, interest rates currently make the monthly cash flow not as high as other properties we have, however for a long term play, this property is a banger!.
Before and after images
