Gwendoline Street – Decision to invest
This property came from PSW, and receiving their email with the summary document started the process of deciding if it was a good investment, what the strategy would be, if the suggested strategy paid off or not etc.
Other costs: £5,000
Total Spend: £65,000
Walk score: 77 Very Walkable
Port Talbot is a new area for us, so a full area analysis was completed to determine if the area is a suitable with appropriate demand to match projected outcome.
To keep the blog tidy, we have separated that off to another post here: Port Talbot Area Analysis.
Some more indepth details below.
Below here is some more info for people we know and trust, check out how to read it here.
|Buy to Let||Flip||HMO – option|
|Rent: £550 pcm / £6,600 pa
Capital Back from Refin: £59,500
Cap left behind if BTL: £2,500
Gross Yield: 9.72%
Sales Costs: £2,140
|Refurb additional: £15,000
Rent: £16,800 pa
Left in: £18,900
Com Val: £168,000
Com Refin: £117,600
Gross Yield: 19.6%
Below here is the outcome of the decision for actual investor partners in this project.
Based on the above there is a good return on all options. Our preference is to go for the HMO option provided the requirements of the local council are not too onerous, as it will be the highest yielding, with highest % of capital returned on commercial loan terms.