Summary:

- We purchased the property, extended at the back and converted the loft

- We then created 5 x en-suite bedrooms, rented, applied for HMO license, and remortgaged

- We raised additional funds from refinance and put towards the purchase of another similar property

- We now have positive net cashflow, partly used as income and partly financing the new project

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Achievement:

- We raised sufficient money from refinance to use as down payment for purchaseing another property

- We have £250,000 worth of equity left in the deal

- ROI which is the return on initial money invested is 24.47%

- After mortgage, utility and management costs, we have £3300 net positive pre-tax income per month

- Considering a moderate 5% average house price increase per year, that increases the ROI substantially

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Architect proposed plans: