Estimated costs on this kitchen? + My estimated calculations

[Bart Weeren]

Hi people,

Newbie logging in here, it's my second topic. 

I found this house, rather low priced on the UK market compared to the street and area value, obviously there was some stuff wrong with it.. as you can see from the picture below. I haven't talked to a building company since I am just currently browsing potential properties and analyzing them to get some more experience doing the calculations.

But I can't really analyse any deals without knowing how much the refurbishment costs are going to be.

I would like to know, what should be on the snagging list to make this into a proper kitchen and also what the approximate costs would be do to all of that.

Property details:

• 2 Bed / 1 Bathroom
• Current offer: 110.000 Pounds
• ARV: 166.300 Pounds
• Estimated repair costs: 20.000 Pounds (not sure if this is accurate AT ALL)
• Offer I am putting out: 96.410 Pounds (based on the 70% rule)
• Rent: 1000 Pounds per calender month (2 tenants sharing the house, 500 each)

The property is located in an area with 3 universities and a hospital, so I figured there would be a good chance for letting this house out with 2 tenants (correct me if I am wrong).

Here are the calculations that I have learned on my 3 day property investing seminar (UK based) and have implemented in my calculation spread sheet below.

Please comment on the calculations if you see something missing or find odd. I notice myself that the Monthly Operating Costs (tax, insurance, etc) are rather low compared to what I have learned and read on this website, for example; the 50% rule.

The remortgage (after 6 months) will be valued on ARV, leaving me with 4.815 pounds in my pocket according to my calculations, making this property into an asset.

What do you guys think?