The Project
A run-down property near the town center, requiring urgent refurbishment, underwent a significant transformation in our strategic property investment venture. Through extensive efforts, we converted the derelict structure into a 6-bedroom residence, complete with ensuite bathrooms, and some rooms equipped with kitchenettes. Following a successful refinance, we managed to extract all invested capital from the deal, achieving a remarkable infinite return on investment, as no funds were left tied to the property. This redevelopment not only generated substantial rental income but also exemplified a financially efficient and lucrative real estate investment strategy.
Before
Total Acquisition Cost – £141,450
Refurbishment Cost – £135,000
Total Initial Investment – £276,450
After
End Value – £375,000
Money pulled out after refinance – £281,250
Total Money Investment – £0
The Results
Annual Gross Rent – £48,960
Rental Net Cash Flow – £21,700
Annual ROI – Infinite