£35k profit on this flip opportunity in Neath!
£35k profit on this flip opportunity in Neath!
A fantastic opportunity to acquire a property below market value, complete essential renovations and refurbishments, and then place it back on the market for resale.
Figures at a Glance:
- Asking Price: £160,000
- Purchase Price: £120,000
- Renovation Costs: £56,000
- End Value: £230,000
- Profit: £35,000
Property Address: Ena Avenue, Neath
Property Description: Introducing a spacious family home located in the heart of Neath, Neath Port Talbot, on a highly sought-after street. This property presents a fantastic investment opportunity, ideal for buyers looking to add value through renovation and transform it into a dream family residence.
Listed as a 4-bedroom, 2-bathroom house, the property also features a generously sized, well-constructed attic conversion, allowing for comfortable use as a 5-bedroom home. While the house does require some updates and renovations, it holds immense potential to become a welcoming and desirable space for a large family.
Priced at £160,000, the property is already a fair deal for its location and size. However, we have secured an accepted offer of £120,000—a true bargain considering the value that can be unlocked with the right improvements. Despite some initial buyer hesitation due to cracks in the back bedroom along the internal ceiling line, it’s important to note that these appear to be minor settlement cracks, likely due to slight movement in the extension. From external inspection, the walls remain structurally sound, with no signs of subsidence. Nevertheless, as part of due diligence, a structural engineer’s inspection is recommended for peace of mind.
Given Neath's history as a mining town, it’s also advisable to consult with your solicitor regarding any potential legacy mining shaft concerns. However, the property’s location in a well-established residential area suggests minimal risk.
In summary, this is an exceptional opportunity to acquire a substantial property at a fantastic price in a desirable area. With some thoughtful renovation, this house can be transformed into a beautiful home or a profitable resale investment. Don’t miss out on this hidden gem!
Number of Bedrooms (current): 5
Is there potential to add a bedroom?: Yes
Reception Rooms: 2
Bathrooms/shower-rooms: 2
Property Asking Price: £160,000
Agreed Sale Price: £120,000
Fair Market Value (DUV): £230,000
Comparable 1: 3 bedroom 1 bathroom - Sold £213,000 May 2023
https://www.rightmove.co.uk/house-prices/details/england-127081652-93908508?s=abbc7a768a94c3f7a15952ea0d272c20cc7b9e06a4dbc46f4189e5f21b9c2bd0#/
Comparable 2: 4 bedroom 1 bathroom - Sold £238,000 February 2021
Comparable 3: 4 bedroom 1 bathroom - Sold £233,000 February 2025
Extra Comparables:
1. https://www.rightmove.co.uk/house-prices/details/england-106172297-15684808?s=8a82ff9e518301eda511dbd49770ceb82a2711157f39ed567e9f42d710cc23ee#/
2. https://www.rightmove.co.uk/house-prices/details/england-144526199-21242311?s=a1ebdc77c1632d15a592da240c2bee1f3faae81043e92ab9d93650cce16cc694#/
3. https://www.rightmove.co.uk/house-prices/details/england-142220747-21242374?s=b7ec139b07edf6db4d477fb0cb607d3a2c356dcafb61c941408914938445cb84#/
Market Status: Sale Secured by Sourcing Agent
Why is the property being sold?: Sale identified by sourcer (open market)
Is the property in a lettable condition: Yes
Is the sale price negotiable?: No
Property Type: House
Freehold or Leasehold: Freehold
Is the property part of portfolio?: No
Exit Strategy 1: Cash Purchase Flip (or bridge)
Exit Strategy 2: BTL
Exit Strategy 3: Multi-let / HMO
If HMO strategy please select: Property is in an article 4 area and does not have an HMO licence from the local authority. Investor needs to apply.
Potential Target Demographic: Families
Refurbishments Required:
- Rip out existing fixtures and fittings
- Lay new composite slate roof
- Install new stud work and boarding
- Add insulation throughout
- Repair cracks in the rear (with stitching if needed)
- Render the extension
- Convert the back bathroom into a back bedroom ensuite
- Add ensuite to the attic bedroom
- Relocate the kitchen to the middle reception room and create a utility room from the current kitchen
- Complete rewire of the property
- Update plumbing and heating systems
- Complete boarding and plastering
- Replace or refurbish woodwork
- Fit new bathrooms
- Paint and decorate throughout
- Install new carpet and flooring
Estimated Refurbishment Costs: £56000
Flip Figures
Purchase Price: £120,000
Refurb Costs: £56000
Entry Legal Costs: £1600
Exit Legal Costs: £1000
Stamp Duty: £4800
Survey Costs: £750
Broker Fee: £0
SMP Consultation Fee: £3997
Estimated 6 months bills costs: £750
Estate Agent Selling Fees: £3588
Total Costs for investor: With Cash: £188,147.00 or with lending estmiated £100,747
Re-sale price (DUV): £230,000
Estimated Flip Profit: £35000
BTL Figures
Purchase Price: £120,000
Refurb Costs: £56,000
Legal Costs: £1600
Stamp Duty: £4800
Survey: £750
Broker Fee: £0
SMP Consultation Fee's: £3997
Estimated Rental Income: £1050
New Mortgage: £718.75
Stress Test Mortgage: £862.50
Estate Agent Rates: £105
MOE: £105
Cash Flow Most Likely: £121.25
Cash Flow Stress Test: -22.50
Area Description: This property is situated in a highly desirable area of Neath, offering an ideal location for families. At the end of the road, you'll find one of the top Welsh schools in both Swansea and Neath, making it perfect for those with school-age children. Neath town centre is just a 5-minute walk away, providing easy access to local shops, cafes, and amenities, as well as the bus and train stations, both within a 5-10 minute stroll.
For outdoor enthusiasts, Gnoll Park is located just behind the property. This beautiful park is perfect for family outings and dog walks, and it regularly hosts fairs and community events throughout the year. Parking is convenient with on-street parking available for residents, who can obtain a permit from the local authority, ensuring plenty of space is available.
This location offers a perfect blend of urban convenience and access to nature, making it a highly sought-after area.
Nearest Train Station: 1 mile
