Weekly Review #10 - Buy to Lets, Dilapidated Houses and Care Homes
Updated: Oct 17, 2020
ELLIOT JAMES PROPERTY - WEEKLY REVIEW #10 - Find out what deals we are working on
This week we have been working on:
- Buy to let property (3 bedroom terrace in Ashton-under-Lyne)
- Dilapidated houses (3 terraced houses requiring extensive work)
- Care Home development site
- SALE AGREED on another buy to let property
While I much prefer working on the development stuff a good source of income for us this year has been the buy to let properties for our overseas investors. This week an estate agent we are working with sent us a 3 bedroom terrace property in Greater Manchester. We researched, packaged and sent this over to our investors and after a £5k price reduction they agreed to buy.
Below are the final numbers:
3 Bedroom Terrace
Purchase Price £85,000
Refurbishment £2,000 (an allowance for any general maintenance)
Stamp Duty £2,550
Current rental income £525 pcm (£6,300 p.a.)
Potential to increase rent to £575 pcm over the next 12 months (£6,900 p.a.)
Current Gross Yield 7.4%
Potential Gross Yield 7.9%
Revaluation between £100,000 and £105,000
This property has come from a landlord looking to sell some of his portfolio over a period of time. By working with our overseas investors, who don't physically have to come and see the properties, the landlord can sell off the properties without disturbing his tenants with viewings and the vast majority of the time our investors will retain the tenants.
These buyers are looking for more buy to lets in the Greater Manchester Area as well as HMOs and blocks of flats. We are happy to work with others on these deals.
Sites/Buildings we are looking for:
- Development sites/conversions for between 4 and 12 units with or without planning
- Residential refurbishment opportunities
We have clients looking for:
- Multi-tenanted office buildings
- Larger Development sites 100+ units
- Apartment schemes / commercial conversions
- Apartment Blocks (Greater Manchester + other areas, vacant or tenants)
- Industrial buildings
- Buy to lets (Greater Manchester, 6.5%+ Gross Yield)
Hope everyone had a good week!