Refurb Investment Opportunity 10k Profit and 8.5% Yield! on Cavendish St. with Darwen Estate Agents - Ainsworth Lord Estates

Was having me T last night and Debs was telling me about one of the houses she'd recently been instructed on (she knows I always like to hear that kind of stuff), on Cavendish Street in Darwen.

She tells me it's a nice refurber for a new Landlord or investor, that wants a house to do up and either sell for a quick profit, or keep and rent out with a decent rent.

Low Risk Investment
When she says a 'New Landlord or Investor', this means it's going to below risk. Why's that I hear you ask? Good question...

Well, Debs has plenty of experience at what she does, and has had some cracking results on Cavendish St. She got £85k for one not that long ago further up the street. So as you can see it sounds a good deal?

Strong Rental Demand
And Cavendish Street is in a good location for the main road, schools and motorway etc... rental demand is always good round there.

So... I'm interested in looking at it so I can let you guys know, and if you're not too late, it looks a decent buy for sure.

Here's the baby..

Investor Refurb Opportunity on Cavendish St Darwen

Here are a few of Debs' internal shots...

So, it's obvious it needs a refurb on it. But she tells me the house itself has been well looked after, and is just old fashioned inside.

Bit dated, but that an easy fix

Yep, it's a bit dated, but that's ok. 

Rip out the stone work, if you're up to it maybe take chimney right out to roof. (Make sure you know what you're doing here - or get someone in to do it), it makes all the difference to the room sizes, and certainly adds value.

Ok, so it needs a new kitchen?

New Kitchen... allow say £2-3k

Replace with a Nice new kitchen from Howdens (make sure they don't take mick on prices)

Use nice tiles and nice lights, and ask the wife to choose the painting colours (women are better than us fellas at that).

Sorry, Peach is out

New Bathroom... Yes, peach is out I'm afraid.

Budget say £1500 for comfort, and do a proper job!

Don't forget put independent electric shower in.

Easy £10k Profit and 8.5% Yield - No Brainer!

So folks, let's do the numbers..

Purchase Price: £55k

Budget £15k refurb spend on it (You will be able to do it for less, I'm sure, but always better to work on higher numbers).

Total Spend £70k

To sell on.... Debs reckons she could get £85k with a nice job done. So a nice easy profit, and it sits comfortable with me on my £10k Profit Model.

If you wanted to rent it out...

So it stands you at £70k

I reckon a nice 2 bedder on here will achieve between £500 - £525 depending on standadr of job and finishing touches..

So again working on worst case numbers at £500 pcm (£6kpa) That gives us a nice sensible return at 8.5% Yield and because you'll have done a nice job on it there shouldn't be much, if any, ongoing maintenance AND the rental market it will snap it up quick!

But.... if you made it into a 3 bedder, then the numbers all change!

We only do nice coffee

If you're interested in having a chat about this one, or any other you've seen up for sale with any of the Estate Agents in Darwen, why not bob down to our office on Market St (opposite YourMove Darwen and Boots the chemist in the town centre).

We're always happy to offer a second opinion over a nice coffee (we only do nice coffee).

But you could always email me on paul@ainsworthlordestates.com 

Or give us a ring.. 01254 760660. 

Redearth Road Darwen, Potentially an easy 10% Yield.

Redearth Road has had some bad press over the last 10-15 years or so, and for some good reason too. But that's in the past and since Sainsbury's came to town and then more recently the new DACA Academy, things have looked up.

I get some cracking yields on Redearth Road, but there is a knack to it, and I'm not talking rocket science here, more the use of experience and tweaks of the trade.

See this little baby here..

Rental Investment on Redearth Road, Darwen

http://www.rightmove.co.uk/property-for-sale/property-47392169.html?premiumA=true

Well, this little baby has been reduced twice now, from a whopping £70k to £60k and just now down to Offers Over £55k, so it gets my attention now, as it's sensible money for sure!

I know it needs a few tweaks just by looking at the pictures, most of which just seem cosmetic which is always reassuring, so I don't see any major spend on things like the kitchen or bathroom (although a viewing would confirm this).

So given the hasty price reductions I reckon it's time to take peek and make an offer, who knows?

If you are the lucky one and want to know how to make a 10% return on your investment, or  if you're thinking of putting an offer in I'd be happy to give you my thoughts before you commit yourself....

Why not give me a call at the office on 01254 760660 or drop by for a coffee... you know where I am... 

Nice Refurb Opportunity Lynwood Avenue, Darwen. £15k for a couple of months work? Not bad!

I'm always being asked for refurb deals, and to bag nice deals it's not always easy as they tend to get snapped up pretty quick.

But just scouting round on Rightmove and Zoopla this morning I noticed a decentish property that looks as though it could well be a nice little earner. Its not gonna make you rich overnight but it looks to me like one worth picking up to keep you refurbers busy for the next couple of months......

It's up with two Darwen Estate Agents - YourMove Darwen and Ainsworth Lord Estates. It's been on the market since middle of October which is over a month now, and not snapped up... so it needs a good looking at with a critical eye cos something that's been on for a over a month and not sold may have issues?

Reduced by £10k
Then just looking at it again, I notice it's been reduced from its original asking price of £75k... so its been dropped twice - £5k each time to £65k- that could well explain why its not gone yet mmmmmm?

Here's the baby....

and here's the link..
Potential Refurb Deal on Lynwood Ave Darwen

So what would it be worth when its been refurbed to a 'good' standard? Well I asked Deborah our sales director who is one of the agents selling it and she reckons with a nice refurb job done on it it's worth around the £100k mark. But she also stressed it neds to be a nice job, not a cheap job!

£10-£15k for a couple of months work? 
So I reckon a fat £20k spend on it should do the job. Given it's been dropped form £75k to £65k with a £20k spend will mean it stands you at around £85k. So if Debs got £99k for it you woud walk away with between £10-£15k profit. Not bad for a couple of months work (tax free if you box clever)?

So go have a look and make the offer, see if you can get it for £65 or thereabouts. I should imagine with the price reduction the interest levels have spiked a bit. Certainly don't go over £70k as the risk becomes a bit too fine, and I always say refurb deals aren't worth bothering with if you can't clear £10k min.

Remember if you see anything worth looking at drop me an eamil or call in to my office on Market St in Darwen. Always happy to chat and offer a second opinion. Debs will usually be around to offer her advice too. my email is paul@ainsworthlordestates.com
Happy hunting!

7% Yield in Lower Darwen, is that good enough? You could do better....

I love Lower Darwen, it's one of those areas where you can't go wrong as a landlord, or can you?

Perfect Location
It's a nice little place just in-between Darwen and Blackburn, close to some good schools and more importantly smack bang between two motorway junctions - 4 and 5 of the M65, plus loads of other attractive attributes of potential renters.


10% Yield Minimum
To date, every property we have on our books delivers over 10% yield for my landlords, and some give double that! but that's for another day.

Deal or No Deal?
Anyway, Ive just come across a little cottage that's being advertised by two estate agents in Darwen, which in itself raises questions in my head.... why would someone have 2 agents marketing the same property at the same time? It's probably the worst thing you could do as a seller, because this does nothing at all to motivate either agent. It goes right to the bottom of their list! Plus it will giv out the wrong signal to buyers, which is the seller is desperate to get rid. So assuming the latter is correct my ears prick up because we have a potential deal on the horizon, or do we?

Deal or no deal for us Landlords?

http://www.zoopla.co.uk/for-sale/details/35179591#VjWbejD77Smbgy4r.97


Let's look closer...
As I mentioned earlier, all my Lower Darwen stock delivers 10% or more. So what's wrong with this one? Well, I think we'd struggle getting above 7% on this one, for a variety of reasons, unless we can get a cheeky offer accepted.

I personally think it's too much money at £72,500, after-all you only need to look at what's available on Rightmove or Zoopla for that kind of money to see for yourself.

Always be mindful of your exit before you buy
Given where this cottage is situated, which is on a very busy road, with narrow footpath and difficulty parking, that's why I think I'd struggle to deliver above a 7% yield on this little baby, assuming we paid the asking price. Even then, as I always say to all my Landlords, we must always consider the exit on a property before you buy, and selling this in the future could well be a challenge. So worth keeping an eye on how the two agents selling this one perform?

Low voids & happy with 7%?
On the upside, whilst it might be in a tricky spot, if you're happy with 7% then it's worth a look, the demand in Lower Darwen is such that it should be full all the time with very few void periods.

Go on, make a cheeky offer, but don't tell them I sent you though ;-)

If you see anything else in Lower Darwen, why not send me the Rightmove link to paul@ainsworthlordestates.com and I'll let you know my thoughts. Or bob into my office in Darwen town centre.

Lower Darwen, 10% Yield on a 1 bed cottage. No brainer

I've said it before, that's cos it's true... I love Lower Darwen. It's great Landlord investment territory. The location ticks so many boxes and demand is so strong, which in turn means we can always get the best yields on decent stock.

Check out this little baby that Debs at our office has just sold from one Landlord to another.

The reason the previous owner decided to sell is quite simple and pretty common. He bought it as a refub property, did it up to a nice standard. We then rented it out within a matter of hours from when we put it on the market for a nice decent rent of £100 per week. The plan was to rent it for a year or two and then sell it so he could do another refub job and buy something closer to where he lived.


Anyway, Debs put it on the market at £55k (a sensible price) and it sold nice and easy to another newbie landlord. A great addition to any portfolio. Nice yield too. (Petty much 10%)

Take a look at it...

Lower Darwen great Landlord Investor territory

http://www.zoopla.co.uk/for-sale/details/33997589#mmAeeoozwEZ95DdV.97


If you are thinking of buying in Lower Darwen why not send me the details and I'll give you my thoughts? Better still, why not call in for a coffee (we only do nice coffee) and a chat. You know where I am... Ainsworth Lord Estates on Market Street in Darwen town centre, opposite the Darwen Your Move office. I'm in most days.
If you want to drop me an email, send it to paul@ainsworthlordestates.com I'll drop you a reply - no probs!

Property Values Rise by £55 per Week in Darwen Paul Ainsworth Lord explains..

Last week, a landlord who lives in the Sunnyhurst area of Darwen came into our office to discuss the rising property values in our part of Lancashire.  He owns a varied portfolio of rental properties, primarily in Darwen, Accrington and Blackburn, so it was interesting to compare the increase in property values around the area. 

Prices up £55 per week in Darwen

Over the last 12 months in Darwen, the average property value has risen from £108,700 to £111,600, a rise of £2,900 or £55 per week.  When I looked at some of the other surrounding areas, average property values in Blackburn have risen from £125,800 to £130,100, a rise of £4,300 or £82 per week.  However, Accrington property values had risen impressively from £99,200 to £107,000, a rise of £7,800 or £150 per week.  This means that values in Darwen have risen by 2.6% over the last 12 months, in Blackburn 3.4% and in Accrington a very impressive 7.8%. Therefore on the face of it, Accrington is surely the best place to invest in buy to let?

Darwen

As a landlord, one must consider the medium to long-term when it comes to property values together with additional factors like yields and void periods.  In future articles I will discuss those matters in greater detail.  However, looking at property values over the last three years, the tables have turned.  In Accrington even with the recent impressive increases in property values, property prices here are only 2.6% higher than they were three years ago, whilst in Blackburn they are only 1.72% higher but our town of Darwen is an impressive 7.9% higher than three years ago.  The research I have carried out enables me to give landlords the best advice on what to buy (or not) in either Darwen, Accrington or Blackburn.

When considering a landlord’s buy to let portfolio yields in Darwen can be in the order of 5%-10% per year, depending upon where you buy, so combine that with steady rental growth, excellent increases in capital values of the property itself and it could be a good time to invest in the Darwen property market as values begin to increase.

If you would like some advice about buying to let, be you a landlord with an existing portfolio or someone thinking of investing in the rental market for the first time, please come and see me at our office on Market Street in Darwen.

Is a 9% Yield up Whitehall in Darwen a good deal? Too right it is!

I'm always getting asked by people which are the best areas in Darwen? So, to someone who has lived in Darwen all of their life, this is a dead easy question for me to answer.

Which are the best areas in Darwen?
The answer is simple, the 3 best areas in Darwen are Whitehall, Sunnyhurst and Boldventure, which is where the 3 parks are. Now don't get me wrong, there are other nice areas too, but you will find these are not so far from the parks either.


So when landlords come to me and ask I am struggling to find properties to buy at the 'right money' in these areas, I tend to agree they aren't that easy to find.

Sunnyhurst or Whitehall?
Anyway, I was having a chat with a local landlord on Monday this week, he's looking for another property to buy and it was a toss up between a nice 3 bedder up Sunnyhurst at 90k (which I always think is an awful lot to spend in a renter round here) and another up Whitehall. So I offered to look at them both online to see which I thought was the better one for him to make an offer on.


He's the sort of landlord who is very clear on his requirements and what he wants to achieve with his property business, which is always good, and I could tell he always favours Sunnyhurst because he has other up there, (an he lives up there too).

Sunnyhurst wins
So after a happy chat I could tell his mind was set on the one up Sunnyhurst and I think he just wanted my comments to affirm his thinking. After our chat he made an offer on the one he preferred, so I'm looking forward to finding him a nice tenant for that one.

But I thought I'd just show you the other one up Whitehall he was considering....

3 Bedroom house, Whitehall Darwen

http://www.rightmove.co.uk/property-for-sale/property-29251488.html

Now this one has been on the market for a while, in fact since 6th February 2014. I haven't checked, but it could have been on with another agent before that.

The asking price isn't too bad for what it is, but the face it hasn't sold in this amount of time tells me it's too much money, and looking at the internal shots taken by the agent, it's clear that a few bob needs to be spent just to bring it upto standard (have a look at it yourself and I'm sure you'll see what I mean).

Anyway, after a minor spend on the right things, I'm confident we could get a nice £550 per month on this little baby, which would mean a potential yield of 9%. Now that kind of yield up Whitehall is good!

If you see some properties you're thinking of buying and just need that extra input why not give me a call or bob down to see me at the office on Market Street in Darwen? Happy to chat about it over a brew (we only do nice coffee).

Nice little Darwen cracker here... 20%+ yield

Well, just been checking out what our friends at YourMove Darwen have got on their books, got to keep an eye on the competition :-).... anyway, stumbled across what is potentially a nice little deal here......

Great Darwen Investment Property

Dead Duck or Gold Mine?

Refurbishment Project for Darwen Investor

 Mucky Job?

http://www.zoopla.co.uk/for-sale/details/34852350#ouo8BeQJkqdrRRx7.97

Stuff like this will be seen by most people as a dead duck, or load of hassle. But in my book it's a golden nugget and I'm always looking for properties like this for my clients, and that's another reason I have to keep checking out what the other estate agents in Darwen are getting on their books.

So where's the money in this I hear you ask?

Well first of all, we don't want to be paying 40k for it! It's worth putting in a cheeky offer on something like this. So let's start at 20k (probably won't be accepted, but you never know!) In all honestly they'll probably throw you out of the office... but hey ho! so, I'd expect to pay about 30k for it. Then it's gonna need a decent spend on it of course. I'd budget about 25k for what I'd do.

There is strong demand in Darwen, with what I'd do with this one, and the returns on it are staggering - not just in terms of rental yield, but capital too. (Despite where it is).

So, you might have noticed, I haven't fully revealed where the money is on this one? But if you're seriously interested in knowing more about how I'd monetize this one, just pop in to my office for a coffee and a chat (bring cream cakes!) and I'll give you my angle on it....

My office is in Darwen town centre, just opposite Boots (and YourMove's office).

Well, better crack on and make a few phone calls. I know several clients that should buy this one!

One of the nicest terraced houses you will see in Darwen

Whitehall Darwen

Our friends at Your Move put this little beauty, up Whitehall, on the market last week for Offers Over £90k. Probably too rich for our landlords, but definitely one for the first time buyers.

Not been inside it, but look at the rest of the photographs .. this wont be on the market long!

Photo's via the Zoopla link here ...  http://www.zoopla.co.uk/for-sale/details/34804142

Spring Vale Garden Village, Darwen- reasonable BTL investment for nervous landlords

Well, Procters Darwen put this nice three bed semi, up SpringVale, on the market for sale last week for £124,950.

Not the greatest yield, but properties have risen by 71% in the last 11 years .. not bad for Darwen!

Don't hang about on this one .. I have a good feeling about this one!

http://www.zoopla.co.uk/for-sale/details/34722683

Springvale Darwen

Laurel Avenue, Darwen - BTL sub-£25k -- PROJECT

Ok, I must declare, this property is on the market with us, but it is a genuine buy to let bargain.

£24,950 for a two bed terraced .. needs everything doing to it

http://www.zoopla.co.uk/for-sale/details/34743427

Great Investment Project Darwen

13.5% Yield on Tythebarn St, Darwen - No Brainer says Paul Ainsworth Lord - Darwen Property Expert

Just had one of my landlords call in to the office today to ask me about a nice little potential renter on Tythebarn Street here in Darwen. Luckily, the girls had just brewed up so his timing was bang on for a brew. (they're always brewing up - must be the nice coffee!)


It's one Deborah's selling, so I buzzed her down to get the info on it and sure enough it looks like a nice little deal.....

Tythebarn Street Darwen Reduced by 16.7%

Reduced by 16.7%

http://www.rightmove.co.uk/property-for-sale/property-46484434.html

Having had a couple of reductions, and down to just under 40k today, it sure does look like a nice little job.

• £49,950 16.7% Reduced on: 11th Jul 2014
• £44,950 10.0% Reduced on: 17th Sep 2014
• £39,950 11.1% Reduced on: 26th Sep 2014

He asked me if it would rent as it was, or would it need some work? But checking the pictures, the house doesn't look to bad at all. However to pull in a decent rent, and attract the right (or best) sort of tenants, I told him that if it was one of mine then I spend a few quid putting in a new kitchen, but other than that it looks good.

I told him providing he did this then I would expect to pull in a rent of around £450, which is just a bit less rent than the £495 I got for a minter just across the road on Kay Street in Darwen. All things being well if he did buy it and we got £450 for it this would mean a yield of 13.5%. However if he was to spend a few bob more on it, by doing some modern decorating and adding a few nice finishing touches to it, and we then got £495 for it, then blimey that would pull in a yield of just under 15%

Needless to say he wanted to book a viewing. 

If you see anything that looks like it might be a decent deal, why not ping me an email paul@ainsworthlordestates.com or call in for a brew to discuss it. 

Yields like this are all around Darwen and are offered for sale by many of the estate agents in Darwen. But in order to get this kind of yield you do need to know some of the tricks of the trade.... the money is in the detail, is what I say, and you need to be using the best letting agent in Darwen (sorry couldn't resist!) :-)

You know where I am.... in the nice friendly Estate Agent's office in Darwen - right in the town centre, parking is always easy too.

ttfn....

Olive Lane Darwen, Reduced by 15% Another Investment Opportunity? from Paul Ainsworth Lord, Darwen Property Expert

I'm always on the lookout for potential deals for Landlords that call me asking for my opinion on whether or not they should buy this house or that, which is great.  But the thing is I often get really enthusiastic new landlords or 'wannabe' landlords looking for properties but just not sure what to buy or where, and this is where local knowledge comes in handy.

Local Knowledge is Paramount
Luckily for me, I have lived in Darwen all of my life (except for a 5 yr stint at Uni) so I can happily say I know every street in Darwen - and just as importantly, know the difference between one end and the other - and there can be big differences.


Take Olive Lane in Darwen for example. Talk about a mixed bag! You see, there are some partsof Olive Lane that work for some investors and other parts that don't. For a variety of reasons.

Reduced by almost 15%
Anyway, on the subject of Olive Lane, I noticed that Proctors Estate Agents have this terraced on the market (still), which has been nicely reduced by almost 15% from when it was put up for sale last November! So it gets my attention.

First of all, it should have been snapped up by now IMHO. So let's take a look at it on Rightmove...


Ugly Pictures are Good!
Ok, it's not very pretty (or at least the Darwen Estate Agent's listing isn't). But as a landlord, this can be a good thing, because the chances are joe punter will think so too. In turn there will be less interest in it (hopefully) and this could well be the reason why it still hasn't sold?
But then again, if you check out the house next door you'd be forgiven for thinking this might be a rough area. Afterall, if next door's had the front door kicked in why on earth would you want to buy a house next door to that? And more importantly is it going to rent out if it was done up and made nice and presentable?

Landlord's Investment Deal on Olive Lane in Darwen.

http://www.rightmove.co.uk/property-for-sale/property-41595163.html

Well, here's my view on this...

The property game should be seen as a long term business
We have to remember the property game, or at least for landlords and wannabe landlords, should be viewed as a long game, and not a business to get into if you want to make short term quick wins (however, such a strategy is fine, but requires a different approach with a different game plan).

So as a medium to long term plan, and with that firmly in mind, this one fits the bill nicely.

Firstly I see an opportunity to add value here, and secondly, I expect to get it for even less than they are trying for. I'd probably chuck in a cheeky offer at 20k with a view to getting an offer accepted at somewhere between 25-30k. But any reduction in price at this sort of level has to be seen as a win.

It's then reasonable to assume, given there is a lack of internal pictures, that it's gong to need a decent spend. Assuming you can do a bit of the work yourself, or have access to some lads that can do a good job at the right money, let's allow say... a 15k refurb budget.

'No Money Left In' Deal
So at worst you pay 30k for it, spend 15k refurbing it, it then stands you at 45k. So long as you followed the refurb advice of an agent that can get you a top rent, I see no reason why you wouldn't be able to add equity and still deliver a double digit yield on this little baby, and pull out all your money again remortgaging it on a sensible BTL mortgage? (and still make a profit on the monthly cashflow).

In summary what we have here is a 'no money left in' deal that will cashflow nicely.

Doubled in price
And not forgetting this is a mid to long term business, if property prices continue to double every 12 years or so, like they have over the last few hundred years, given time you'll double your money too.

Bit of a no brainer really. Perhaps I should buy it myself???

If you see any other like this little baby and want to discuss if it's right for you, why not give me a ring, or better still cal in for a brew? I'd be more than happy to have a chat. My office is right in the town centre, Ainsworth Lord Estates 49 Market St Darwen BB3 1PS Tel 01254 760 660 - ask for Paul.

Potential gem here on Olive Lane, Darwen. Or is it? Darwen's Propety Expert, Paul Ainsworth Lord takes a look..

Noticed this one came on the market a few months ago in June at £45k. Owch.. bit on the high side for my liking, but might be worth a viewing now it's been reduced?

Little Diamond or Ruby? Right here in Darwen

http://www.zoopla.co.uk/for-sale/details/33574182#qFIY166EUgYV6us0.97

But as they have just dropped the price by 5k it shows a good sign that the vendor is keen to see a sale (potentially). So at £39k it's now worth a look.

Having checked out the other pictures on this listing, I see that it will need a bit of work to bring it up to a decent standard so to attract a decent tenant, so make sure you take a count of this when doing your calculations.

A yield of 8% is possible with some careful number crunching and cost control.

You need to bear in mind that rental properties in this area can be tougher than normal to shift. But the demand in Darwen overall is very strong. So this is why its important they are finished off to a good standard to compensate. Then priced right and marketed really well with a good agent you ought to have a decent tenant before too long.

I'd be more than happy to have a chat if this one wets your appetite. Or call in to my office for a coffee (we only do nice coffee). We're just in the town centre opposite the Darwen YourMove office.