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Matt Brighton

26 | We're finally in the BTL Refurb πŸ› οΈ (Progress Photos!)

publishedabout 1 month ago
3 min read

Hello everyone! πŸ‘‹
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It's been a few weeks since I've sent out a newsletter, I finally completed on the first project! I have my very first refurb buy-to-let project and have been working on the rip out over the past few weeks!
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As a reminder, I bought the property for Β£106k and estimated that it needed about Β£10k spending on it to bring it up to a better standard. The estimated GDV when I did the analysis back in March (Yes! Conveyancing took a long time!), I estimated it to be worth Β£130k done up.

However - a few things have changed. Since ripping out the property a few bits I wanted to salvage, like the kitchen were in too poor of a condition so the refurb has become bigger than expected with a new projected budget of about Β£16k - Β£17k. Now - usually that's bad news and poor project planning, but thankfully because it's been so long in conveyancing, my bets on the area (round the corner from a good secondary school, lots of families etc) the area GDV for a 3-bed semi detatched is now looking to be a minimum of Β£140k... I'm seeing a few sell for Β£145k already which is exciting so I'm happy to do this refurb right and spend more money making it right.

That means the updated figures are roughly:

PP Β£106,000.00
​Purchase Costs Β£6,600.00
​Deposit Β£26,500.00
​Refurb Β£16,961.97
​GDV Β£144,000.00
​Profit Β£14,438.03
​ROCE 28.84%

​That's a return of almost 30% which would have made this a great little flip project, but as I bought this using a 2 year fixed and sinking money in myself for 2 years. I'll be locking up that money for the next 24 months and enjoying the rental income and capital growth with it. Overall it should achieve or exceed 32% ROI per year which is awesome. Of course - as things change I'll keep updating the numbers to whatever becomes the final truth!

🏑 Refurb BTL 1 Progress

So - we're now fully ripped out, I was hoping to salvage the kitchen but after looking closely, it needed completely ripping out, I also spotted a leak on the main pipework so better to completely rip it out and start again.
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I was going to order my kitchen from DIY-Kitchens.com and even did a video about it here but when it came to ordering, I spotted that they wouldn't deliver until 2022! That's almost a 3 month lead time.

So I had to re-think my plan and opened up a trade account with Howdens. A lady came round to verify my ID the same day, she then sent a free planner round to visualise and put together a kitchen for me, and he sent that over by the end of the day. Delivery was arranged within 48 hours and I'm having it all delivered today!
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The original cost with DIY-Kitchens including sink, tap, built in oven etc was about Β£1500, Howdens came in at Β£1800 but for the sake of speed, convenience and saving me time with the property being empty, Β£300 extra isn't too bad.

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This is the kitchen - we fully ripped it out ready to re-do the walls and fit the new Howdens kitchen in, hopefully in about 2 - 3 weeks time!

​The bathroom also was really worse for wear and I knew for a long time it needed ripping out, after taking everything out I've found 3 leaking pipes which explains water damage on the ceiling downstairs in the kitchen so my hunch was 100% correct.
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Damp and water problems often look scary but if you think logically it's easy to troubleshoot and find the main problem. The plumber will be coming in to re-do all the pipes here ready to fit the new bathroom.

This is the bathroom - ready to finish the rip out and install a brand new suite, pipes, plastering and tiling!

We also ripped out a lot downstairs, including some old pine units built and nailed straight into the brick so taking those out naturally destroyed the walls! This will be fully boarded over and re-plastered

The old cupboard units are removed, ready to be plastered

And here's a plan for the new kitchen, note that there's an awkward space with a small slither of the kitchen worktop - I was going to keep it the same as before and allow a small gap but kudos to Howdens for coming up with a better solution to make the corner of the kitchen way better and fill in the awkward gap with a filler panel.
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I probably won't be going with the purple / pink wall but the kitchen will be their Charcoal Greenwich kitchen with grey oak worktop (laminate).

Howden's sent me this within hours of visiting the property! All for free

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I used this to analyse the property above and had all the key figures before viewing the property which helped me make the right offer on the property.

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πŸ“½οΈ YouTube this week

I've been posting a few videos of walkthroughs of the property so feel free to get a proper view of what's going on as I go through the refurb process!

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As always - any questions, feel free to reach out!


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