Completed BTL Project The REAL Renovation Numbers
When it comes to property investing, the “deal stacker” spreadsheet is where the magic happens. We’ve just completed a project in Stoke-on-Trent for a client, and the results perfectly illustrate how the BRRR (Buy, Refurb, Rent, Refinance) model builds wealth quickly.
The Project Breakdown:
1. The Purchase & Setup
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Purchase Price: £75,000
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Stamp Duty: £2,250
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Legal Costs: ~£1,000
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Sourcing Fee: £6,000 (+VAT)
2. The Renovation
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Planned Renovation Cost: £19,000
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Project Timeline: 3 Months
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Total All-In Investment: £104,450
3. The Valuation & Equity
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End Value (Post-Refurb): £120,000
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Instant Equity Created: £15,550 By adding value through a strategic renovation, the investor has manufactured over £15k in equity in just one quarter.
The Refinance & Cash Flow:
The goal of this project is to pull as much capital back out as possible to move onto the next deal.
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Refinance Strategy: After owning the property for 6 months, the client will apply for a 75% LTV (Loan to Value) mortgage.
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Cash Back Out: At a £120k valuation, they will pull out £90,000.
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Capital Left in Deal: Only £14,450 of the original investment remains tied up in the property.
Monthly Income (The Yield):
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Expected Rent: £795 per month
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Mortgage Payment (@4%): ~£300 per month
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Management Fees: ~£95 per month
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Net Monthly Income: ~£400 per month
The Bottom Line:
With a net profit of nearly £400 per month on a tied-up capital pot of £14,450, this deal delivers a 33% Return on Investment (ROI).
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