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Deal analyse and some advice needed Please


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1) Is my deal worth proceeding or best to do 5 small individual houses:

 

I have looked at a big 4 row of houses which is all connected and has the potential for 27 to 30 bedroom. The value is about 430K. is it worth purchasing this or go for small 6 properties each will cost 75 to 110K in the area. 

 

As the rooms are all pretty decent size and most partitions already there as it has been a HMO for a while, i  am estimating a low value  or dont want to spent more than  50K to refurb. I might be too optimistic, never done this before please advice, happy to share floor plans and pics. 

the cash in will be around 180K initially  and after refurb hoping to remortgage and the value could be atleast 600 to 650K. The ROI is working out to be in the region of 20 % and net gross at 7 to 10 % ( only on the current value not remortgaged) depending on how harsh i am on the voids and repairs maintenance. I have taken 6 % as stress interest rate.  As its close to university planning to run it as student let or prefer to do a low standard SA or B&B you may call it. or there is possibility to split. 

Q)   is it worth proceeding? this is my first project. I would appreciate if you know any builders or project managemnet company in the north to do refurb within budget. 

 

2) is it worth getting a structural evaluation before making an offer or after? rather having suprise of  refurb cost as its a 1800 or 1900 building.  but looks robust for normal eyes.  it costs 1300 pound :( . or would it be ok to just get a building company to give a quote. should i see an architect aswell?

 

3) what is the right order or step to follow now ?  can anyone recomend a building company in north  or elsewhere who would be cheap and good to do a good refurb work in this big building ?  should i also get an architect involved to suggest on the alterations needed. 

 

4) I am also looking how to finance this project, so any advice on that will be helpfull aswell. 

 

I might sound like i have not got any of my ducks in the row.. but trust me i am very enthusiastic about this project ( as an engineer i am good with numbers and risk analysis) and its definitely going to be winner , i am just looking for a some directions , pointers as a new starter and please you wont regret for sparing 5-10 mins of your life to have been a life changer in an ambitious women's life . 

 

  Thank you so much in advance and i will be very grateful for your pointers.  

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  • 1 year later...

Hi there,

Unfortunately I’m a newbie and I can’t give you much advise, but it sure looks promising.

I heard in a podcast that some people dedicated to property use the LNPG for refurbishments, but I’ve never used them, so I can’t give you personal references.

I hope someone on this forum can give you more advice and you keep us informed with your progress .

 

Best of luck.

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