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Hi,

Thanks for sharing.

Looking at the figures it looks to be a decent deal I have tried to calculate your ROI assuming a few things:

Rent: £1300

Mortgage Interest @2.79%: £435

Management (10%): £130

Maintenance and Insurance: £120

Voids (1 month per year): £110

Net Profit (before Tax): £505

Annual net Profit (before tax): £6060

ROI (based on total put into deal): 7.1%

 

Overall I think it is a decent deal. If the area you are investing in has high rent demand and good level of capital growth in the long term then its good. I would ask though how you are planning to increase the house value by 50K by only spending 10K? Did you buy the house at a discount for any reason?

Regards,

Ahmed

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