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My latest Southampton deal is now steaming towards completion on Friday 13th November!

Hurray!

It has been going since January, so it’s a long time coming. But with a little persistence we could be there soon.
Exchange happened on Friday after a marathon of problems (lease extension, damp, subsidence … etc. etc.)

And it’s taken so long my mortgage expired, so it’s in feet first with an all cash purchase. I’ve been nervous about that at times, but I’m completely comfortable with it now. The return justifies the decision, and I didn’t want to lose the property.

Details of the deal are:
Purchase Price: £65,000
Re-furb: £18,000
Legals, mortgage fees: £4,500
Total Cost: £87,500

Re-sale / Re-mortgage Value: £130,000. 75% LTV mortgage gives £97,500, so if I’m prepared to wait 6 month, I’ll get all my money back plus £10,000 (tax free)
Cash out: £10,000
Monthly Cashflow: £211

Or the other option:
Sale: all my money back out, costs paid and profit of £38,500 … but the greedy tax man will take some of that!

So Not No Money Down, but a classic No Money Left In (NMLI) deal or a flip.

I’ve not decided which way this one will go yet. Let’s get the purchase sorted first, then it’s on to the re-furb before I need to worry about getting my money back out.

And even better the seller has just confirmed that he’d like to rent it from me WHILE I DO THE REFURB! How cool is that!!! So money coming in from day 1.

Woo Hoo!

This entry was posted on Tuesday, November 10th, 2009 at 3:31 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.