{"id":168,"date":"2026-01-28T12:32:27","date_gmt":"2026-01-28T12:32:27","guid":{"rendered":"https:\/\/beforelive.org\/ms\/?post_type=project&p=168"},"modified":"2026-04-02T21:46:11","modified_gmt":"2026-04-02T21:46:11","slug":"ebury-rd-project","status":"publish","type":"project","link":"https:\/\/mikesmithproperty.co.uk\/beta\/projects\/ebury-rd-project\/","title":{"rendered":"Ebury Rd Project"},"content":{"rendered":"

Ebury Rd was a dilapidated block of 6 flats which had not been occupied for seven years. It had previously gone to auction and had not sold due to the poor condition. The owner was holding out for too much to make a deal post auction, but after another 12 months of still seeing it empty Mike tracked down the owner direct and arranged an off market deal.<\/p>\n

The price was set at \u00a3302.5k (Oct 2019) which was a fair price given the very poor condition. Mike\u2019s angle was that due to the large size of the flats (60m2) they could easily be turned from one to two bedroom flats and thus increase the rental value substantially with some well placed stud walls.<\/p>\n

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Mike purchased using a short term bridging loan. As it was split between two titles it was possible to do works on each side, refinance and put the recycled capital to work on the other side of the building. Essentially halving the build capital requirements for the work. A rare situation for a block of this size!<\/p>\n

The first side Ebury Rd which was completed and tenanted in March 2020 with a build cost of \u00a370k and end value of 245k. The left side was then completed in September 2020 with an end value of 250k with a spend of 75k. All in a spend of \u00a3447k.<\/p>\n

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Mike developed this property at the height of the Covid Pandemic and the project was an extreme endurance test. First in March 2020 the bank paused the next tranche of capital (thankfully only for a few weeks!) and then was significant shortages of even basic materials like plaster! Just to finish the project was a real achievement given the significant disruptions the project faced but Mike persevered and to keep things moving he even picked up a paintbrush for a final weeks!<\/p>\n

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Because the flats were now 2 bedroom flats and in excellent condition they were now commanding some serious rent, \u00a3675-750 each and the building brings in a very impressive \u00a352,000 per annum, 10.93% gross yield on a total GDV of \u00a3495,000.<\/p>\n

As of 2021 the building brought in an excellent 29k net profit <\/strong>after finance, voids and maintenance costs, see the breakdown below. Even the area is a relatively nice area for a rental property and Mike intends to hold the property for many years to come and unlike HMOs which are becoming increasingly competitive it has an excellent defensive moat.<\/p>\n

Purchase Price – 1st Oct 2019<\/u><\/strong><\/p>\n