House 1 – 2 bed terraced
Our property journey really started when we decided to move to Durham in 2014. I had been living in my house for 18 years and then rented it out to enable me to move. I was an ‘accidental landlord’. The details are as follows and the values are current ones. All the houses are in NE England.
Purchase Price : £32,500
Current Market Value : £45,000
Rent Currently Received : £4,320 pa
House 2 – 2 bedroom semi
The house we bought in Durham in 2014 was built in 1999/2000 and again is 2 bedroomed, but it’s semi-detatched. It was owned by a former student of Durham who became a lecturer at Nottingham Uni. He’d rented it previously. We’re only 1 mile from the city centre, so the higher prices there are going to radiate out in coming years, giving us extra equity to play with (we’re down to about £76k on the mortgage, so maybe £50k to play with next year).
Purchase Price : £113,000
Current Market Value : £140,000
House 3 – 3 bedroom end terrace
We then started seriously looking at property as our way of making passive income. We sourced our next house which was up for auction with a £6,000 fee. This didn’t make it enough BMV, so we asked the vendor to drop it from the auction, waited 31 days then put our official offer in (we’d already verbally agreed a price). The house was in nice condition and only need £2,000 spending on it. We then refinanced after 6 months and took our deposit back, making the house completely purchased with other people’s money!
Purchase Price : £55,000
Current Market Value : £80,000
Rent Currently Received : £4,680 pa
House 4 – 2 bedroom mid terrace
The next property we bought was a 2 bedroomer, a relative new build at the end of a cul-de-sac, next to a church. The vendor lived in London and was in poor health, so a motivated seller. He had the house advertised on Rightmove for £59k. We secured it for only £44,000. This one needed more work, but we spent £11k on doing it up (some internal structural changes) before refinancing again after 6 months and taking our money back.
Purchase Price : £44,000
Current Market Value : £75,000
Rent Currently Received : £5,040 pa
House 5 would have been an £80k house; we had an offer accepted, but pulled out because the deposit money was needed elsewhere.
We are currently financing a 3 bedroom cottage for our son who bought it for £55k in Durham (so jealous because we sourced it for him). This one was also an auction property and we paid £6k to remove it from auction. It had a sitting tenant, but the vendor evicted at our request. He’s spending about £30k on it (it needed new windows, lintels, bathroom and kitchen and he’s removed two chimney breasts). The real market value when finished will be circa £110,000, so a tasty profit. He’ll then remotgage and we’ll get our money back out for future investments.
The rental from houses 1,3 and 4 pay for themselves as well as the mortgage payment on our own house (house 2). After 3 house purchases the whole thing becomes a cash generator. 😎
For the future, we are looking out for further opportunites in the North East.
Any comments or questions are welcome. 👍🏻
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