We purchased Broadmead Road, Folkestone, in July 2017. The property was extremely run down and in need of massive modernisation and required a full refurbishment. This included everything such as new wiring, and new heating and hot water systems.
We planned to convert this property into a 6 bedroom with 4 ensuite licensed HMO.
Work started quickly after the purchase of the property. We started by knocking down the walls that were no longer needed and then started on the stud partition work to reconfigure the house into 6 bedrooms with 4 ensuites.
Then there was a complete rewire of the property and we installed a new system boiler and accumulator. We also installed a new kitchen, new bathrooms, full safety and fire alarm systems and equipped the living area with furniture. Finally we provided a full interior design for all of the tenant rooms.
All of this work was completed by the end of October 2017 which was fast considering the amount of work required. The first tenants moved in to the HMO in the third week of November 2017 so we minimised the amount of time the property was vacant.
Here are the project financials
Costs Summary
Purchase Price: £195,000
Refurbishment Costs: £49,500
Stamp Duty and Fees: £11,353
Revaluation and Mortgage
Commercial Revaluation: £330,000
Mortgage Amount Raised: £247,500
Investment Returns
Rental Profit: £1,600
Equity Created: £74,146
ROCE: 209%