Walter Road – Decision to invest

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Walter Road – 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.

The basics:
Purchase: £135,900
Other costs: £5,000
Refurb: £60,000
Total Spend: £200,900

Investor subscribers can see the returns here:
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Below here is some more info for people we know and trust. Check out how to read it here.
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Rent at 80%:
Gross Yield: 11.71%
Cashflow: £1,373.75 pcm after int and expenses
OPT: -£47,500 23% left behind
ROI: 34.23%
TRR: 10.94%

Although this deal fails the OPT (offer price template) test, we decided to go forward with the investment to get some HMO experience, and cash flow experience.  When we up this to a full business loan, the OPT will pass the test, as it is a HMO.

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Jun and Craig are the principals of JC Holdings, they are on an adventure in the UK and sharing their experience via this blog for education and transparency. More details about them on the about page here About us

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