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
The house we bought in Durham in 2014 was built in 1999/2000 and is also 2 bedroomed, but it’s semi-detatched. 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 £30k to play with next year?).
Purchase Price : £113,000
Current Market Value : £140,000
Property Books You Must Own and Read (click to buy)
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 out. Another house with infinite ROI
Purchase Price : £44,000
Current Market Value : £75,000
Rent Currently Received : £5,040 pa
Recently financed for our son
We have recently finished 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 spent about £35k 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 £115,000, so a tasty profit. He has now remotgaged and we’ve got 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.
House 5 – a 4 bedroom mid-terrace
After a spell of 5 months or so, we finally bagged our 5th house. We looked in a slightly different neighbourhood this time and came up with this little gem (actually not so little, it was a three floor property, with two bedrooms tucked under the eaves).
A little light renovation was required, with new blinds, a new back door, refreshing of the kitchen and papering and painting of the hallway being the only jobs that needed doing. The whole house was freshly carpeted out, so that saved a packet. We reckon we can get £500 per month for this one.
Purchase Price : £50,000
Current Market Value : £70,000 ?
Rent Currently Received : £6,000 pa.
House 6 – a 3 bedroom corner terrace
This was a speculative viewing, the photos didn’t look fantastic but as soon as we visited we realised the photos didn’t do it justice. It was originally on sale for £60k, but after a bit of negotiation we settled on £53k.
It’s our intention to create a 4th bedroom to add value. Several of the rooms already have excellent laminate flooring, so not much else to do.
Purchase Price : £53,000
Current Market Value : £75,000
Potential Rent : £6,600 pa.
For the future, we are looking out for further opportunites in the North East.
Any comments are welcome.
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is an Entrepreneur, Blogger, Internet Marketer, Local SEO Search Consultant and Property Investor from North East England. He is an active member of Wealthy Affiliate, an Educational Portal for Affiliate Marketers of all experiences. If you have a local business, I can secure you more customers and save you time.
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