My Rental Property Needs an Upgrade – Should I Sell or Spend Some Money On It?03 Jan 2020
This is a frequent question that comes up and I thought it would be good to get some hard figures out there – this 2 bed flat had major structural repairs done and then the owner was undecided between keeping it as a rental in his portfolio or selling it – it needed a cleanup, paint, re-floored throughout and some electrical work.
✅Value before works £55k
✅Cost of structural works £8k
✅Cost of Works £4K
✅Value after works £70k
✅Rent achieved after works £600pcm
So this property generates a yield of over 11% which makes it a keeper all day for this portfolio landlord! 🙌 Not much to be made in terms of capital appreciation here but as an income generator, it’s fab!