Used Glenn’s “If it smells of wee, think of me” line…
The Agent laughed and said, “I have just the house for you..”
The property is two semi-detached houses that have previously been knocked together to form a care home. This was done in a very haphazard way. The houses are occupied by the owner, who “only” has 17 cats left now out of the 150… there is caging for in the back garden and three “waifs and strays” who are needy people she cares for.
The house has been on the market for 2 years, at a price of £285,000. After a bit of negotiation, we got it down to £250,000.
I had my Architect have a brief look at it with regard to dividing it into flats.
Figures as follows:
Purchase Price £285,000
Conversion to 7 Flats @ £30,000 per Flat £210,000
Total Costs £505,000
Sale of 5 x 2 Bedroom Flats at £90,000 Each £450,000
Sale of 2 x 1 Bedroom Flats at £75,000 Each £150,000
Total Sale Price £600,000
Total Profit £95,000
Flats will be run as an 18 bedroom HMO whilst planning is obtained, this should produce a profit of some £1,000 per month over and above the finance cost.
There may also be scope to build at least one more flat, as the property has lapsed planning permission for an extension at the rear.
Plan B is to run the property as an HMO, and get more favourable finance, allowing a £2,000 profit per month.
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