Page 11 - Ian Cowie
P. 11
THE NUMBERS
2 TO 4 BED CONVERSION
Project Columbia Terrace is a 2 bed to a 4 bed conversion. When this
property first got revalued, it got down valued at £117,000 which is £18,000
less than what I know it’s worth.
PURCHASE PRICE £63,000
REFURB, BRIDGING & BROKER FEE £32,403.93
RENT £850 PCM
CASHFLOW £343 PCM
NEW VALUE £135,000
I knew that it was worth more so I went with a different surveyor who valued the
property exactly what I know it’s worth at £135,000. If I had accepted the first
valuation, I would have left around £16,500 in the deal, given me an ROI of 30%, which
isn’t too bad.
However, with the right valuation, I will only be leaving £4,325.93 giving me an ROI of
95%. I will have all of my money back from this deal within one year. This property was
on the market for quite some time before I came across it. I just saw something in the
property that others missed, and I know my investment area very well.
