About
Introduction
I, Roger Goodwin, am the Director of Goodwin Property. I have been completing renovations and conversions since 2012. I currently have a portfolio of properties including an HMO and single lets in Greater Manchester, Lancashire and Mid Wales.
The Team
The Team
Goodwin Property has a small team of trust contractors who we have used on all of our projects in Greater Manchester. We also work with three local independent lettings managers who manage the properties in our portfolio.
I, as director, project manage all the refurbishments, to ensure that they come in on time and budget.
The Project
I have recently agreed at auction to purchase a 4 bed HMO which is located in the center of Warrington (WA5). The HMO provides accommodation over three floors. It has 4 double bedrooms, a dining room, kitchen, 2 bathrooms, and a downstairs toilet. It has an EPC rating of D. It also has the potential to create an external laundry room or office space with separate access from a side street and directly from the back courtyard.
Warrington has the highest average wages in the North West, which makes is an attractive area for investors.
The property in question is near to Warrington Hospital (10 mins walk), Warrington town centre (10 min walk) and also has good transport links with the main railway station, Warrington Bank Quay being only a 10 minute walk away, this train station has direct services to local areas and also provides a direct service to London Euston. The location of property also is close to the M6, M56 and M62. A major supermarket is just 4 mins walk from the property.
This would make it the ideal location for potential professional residents.
Warrington as an area
Warrington Town center has recently been revamped, bringing a new market hall, a cinema, and new bars and restaurants to the area. In addition to this, The University of Chester is going to be relocating to Warrington Town center, which may provide a long-term opportunity for student accommodation.
Refurbishment plan
We have a small renovation planned for this project and it is expected to be completed within a 6-month timescale. The plan is to re-paint the property throughout, refurbish the bathroom, and either add a utility space to the external room for laundry or to make this into an office area, this will be decided by the type of resident interested in letting within the property. The total estimated cost is between 10-15k for the refurb.
The Figures
Current tenants
The property currently has 3 rooms that are already let on AST Agreements
£350
£368
£375 (July 2021)
These figures will be reviewed by the new managing agent, when appointed, and are expected to be increased to £400 per calendar month, which we believe brings them into line with current market values for a similar standard of properties in the area once renovations have been completed.
Investment Figures
Purchase price 83k (already secured at Auction on 14/07/2021)
Potential Gross Yield 23 % yield
Potential Net Yield 15%
Last sold for 115k in 2015 (Estimated value with light refurb 115K-135k)
Estimated Gross income 19200 p/a
Estimated Net income £8523 P/A
Compatibles
The cheapest 4-bed house on the market currently is 100k (right move) within 0.25 miles. In addition to this, as a single let the LHA rate is £875 PCM.
In terms of single HMO rooms, in Warrington, these are around £350 to £425 per calendar month.
The Opportunity
In return, we are offering a rate of return of 8% per annum. This compares with the 0% - 0.25% return that you would currently be earning by leaving your money in a current account, with a high street UK bank.
We are looking to raise this £100k to cover the cost of the purchase and refurbishment. The term of the loan would be for a maximum of 12 months. We have already secured this investment with a deposit on auctioneer fees.
The investor's loan could be secured against the property.
Once the property has been renovated and refurbished, we will apply for a mortgage to extract out our own funds that we have invested in the project and therefore we would be in a position to comfortably repay your loan, with interest.
Also, once you decide to come on board with us, we would be happy to take you to see the property before the building works commence and once the project has been completed, as we are sure you will be impressed with the transformation. We have attached pictures of the property as it is now.
Next Steps:
Please let me know if you are interested in this opportunity by return of email.
We will send you a contract to sign with the agreed loan amount once a deal has been agreed.
Would you like to find out more about Investing in Property?
We are looking for more investors to help grow our business. We offer bank busting rates, why leave your money in the bank earning little interest?
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We can offer you:
A much better return on your money than in a bank!
Complete armchair investing, just sit back and see your money earning more or Site visits and insight into specifics of a project
Regular updates on projects if you would like this information! (not all lenders do)
Upon completion of the project, all capital plus interest are returned to you.
Interest paid monthly or rolled up to the end of the project