158500.00 $ Lancaster city centre HMO fully let to students rental income 27K. 40% + pa returns on cash invested Avery Island

Published date: 22.10.2020
  • Location: Avery Island, Louisiana, United States

FULLY REFURBISHED PROPERTY
4 LARGE BEDROOMS
LARGE COMMUNAL KITCHEN AND DINING AREA
4 EN-SUITE BATHROOMS
1 GUEST BATHROOM

Proven return on cash invested is initially 15% and ULTIMATELY IN EXCESS OF 35% per annum on all properties in this area.

EXCELLENT REVALUATION LEVELS ON COMPLETED PROJECTS


**ALL THE FOLLOWING CALCULATIONS ARE BASED ON ACTUAL RENTAL FIGURES AND PROJECT COSTS**

Purchase Price: £158,500.00

Deposit: £31,700.00 (Mortgage 80% LTV – this is subject to status and criteria)

Conversion/Build: £47,500 approx. (4 bedrooms / 5 bathrooms)

Set up costs/ Design & Build Fees including VAT - £15,000

Legals - £1,300

Stamp duty - £4,755

Survey - £450

Furniture and flooring packs can be purchased at an additional cost - £7,261.00

TOTAL PROJECT COSTS: £234,766.00
TOTAL CASH OUTLAY: £107,966.00

RENTAL INCOME: 2 rooms at £100.00PPPW (Ensuite) and 2 rooms at £140.00PPPW x net of bills (water, gas, electricity) = £24,960.00

Management: £3,244.80 per annum includes VAT (Fully managed 10%)
Annual mortgage cost/interest: £5,566.52 (4.39% - subject to status and criteria)

TRUE NET INCOME: £16,148.68
NET RETURN ON CASH INVESTMENT: 14.95% per annum

Based on a refinance valuation of £265,000 we can release up to £212,000.00 (80% LTV) by re-mortgaging after completion of the project. At this stage, you will have only around £22,766.00 left in the deal and after deducting the new increased mortgage interest, your net income will be approximately £12,196.40 annum giving you a net return on CASH INVESTED OF MORE THAN 50% PER ANNUM!!

Based on the full commercial value after 12-18 months, the property would value at £350,000.00, we would then advise a second re-mortgage of up £280,000.00. This completely reimburses the original cost of the project & gives you an extra lump sum of over £45,000.00.

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