Daily Archives: February 20, 2017


You will remember in Day 12 we referred to a block of flats we agreed a price on in Sunderland.  It was 9 flats in 4 blocks with 4 separate entrances above a parade of shops.

The flats are right in the centre of Town and at £235,000 we think they represent exceptional value. They are what we call a “Jewel in the Crown”.

The reasons why they are going so cheaply we believe is because they have been very poorly managed.

In fact, the story of these flats is a classic example of what often happens when people from London buy up North the Owner is a person who lives in a well-known part of London. We would imagine they are wealthy because we are not dealing with them but their business manager. They have appointed Agents in Sunderland and when we see the property it is clear that it is in a complete state.

They only have 6 flats rented out and at very low rents. When we go around we see why. The flats are not in a poor structural state but they are in a very poor state of refurbishment. Basically, they have been run into the ground.

We would imagine the Owner is selling because they have just had enough and just do not have the time or inclination to come to Sunderland to sort things out.  When we take possession, we are contacted by the Council who are concerned about the state of the properties and if they had contacted the previous Owners that would be another reason to call it a day.

That is our USP. I am a London person who has actually moved to the North to manage the business. I do not think I could do what I am doing remotely. And many London Investors have had that experience. We come across examples of that all the time.

Anyway, we purchased the property and have started doing it up. One of its good points is because they are in 4 separate blocks you can go block by block and then let out the ones you have done before you do the next block.

We have completed the first two and put them on the market. Today we hear that the first one has let for £450 per month. That is FANTASTIC news.  It is at the top end of our expectations. If all the flats let for that amount, then our gross rental return will be a staggering £48,600. Not bad for a £235,000 purchase (although we will have to spend about £50,000 to do the flats up)

If you want to see this property, then here is a link to our video.