The property was selected as it hit the criteria required, it was undervalued, it required extensive work and would give the investor the required rate of return. The exit strategy selected was to Flip. We viewed the property and evaluated the works required, the planning approvals and the anticipated resale price. We offered below asking price and the vendor accepted.
We went about converting the disjointed 5 bedroom house (2 rooms in a separate annex) into a modern spacious 4 double bedroomed family home. The changes we made were to extend the kitchen out into the garden, to knock through into the annexe, convert a bedroom into an ensuite for the master bedroom and increase the landing space. The flat roof on the living room also needed rectifying.
Once we commenced works, the project took 6 months to complete, complicated by Planning Permissions.
The reconfiguration had the desired effect and with input from the estate agent pre-completion we were able to maximise the valuation and sale value of the property.
The valuation of the property was higher than we had anticipated and the investor realised a 14% return on his investment.
The Investor is now undertaking 2 more similar projects with Caurum.