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Buy · Refurb · Refinance · Rent

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Load RENOJECT example (£300k → £400k GDV, £2,400 pcm)

Purchase

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£
£
£
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Additional acquisition costs

£
£
£
£
£
£
£

Refurb

£
mo
£

Council tax, utilities, insurance during refurb

Bridging finance

Off = standard purchase mortgage. Switch on to model a bridge that's repaid by the refinance.

Refinance

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%
yr
£

Arrangement + valuation + legal

Rental (post-refi)

£

Rent being achieved today (pre-refurb)

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%
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Flip / sale exit (optional)

BRRR verdict
Partial pull-out — £31,083 left in
62% of starting capital recycled · Cash left in £31,083

Key metrics

Purchase price
£150,000
Fixtures & fittings
£0
Refurbishment cost
£30,000
Conservative GDV
£220,000
Below market value %
31.82%
(GDV − Purchase) ÷ GDV
All money out (years)
9.53 yrs
Cash left in ÷ annual cashflow

Revenue

Lettable units
1
Current monthly rent
£0
Achievable monthly rent
£1,300
Achievable annual rent
£15,600
Gross yield (on purchase)
10.40%
Annual rent ÷ purchase price
Gross yield (on GDV)
7.09%
Annual rent ÷ GDV

The deal

Total cash in
£81,083
Deposit + costs + refurb + holding + interest
New loan @ refi
£165,000
75% of GDV
Cash released
£50,000
New loan − purchase loan − refi fees
Cash left in deal
£31,083
62% recycled

Value uplift

Profit on paper
£40,000
GDV − (price + refurb)
New equity
£55,000
GDV − new loan
Money multiple
2.71×
GDV ÷ total cash in

Post-refi monthly cashflow

Rent
£1,300
Mortgage (IO)
£756
Repayment: £1,013
Operating costs
£272
Mgmt, maint, voids, insurance
Cashflow (IO)
£272
Repayment basis: £15

Yields, ROI & lender stress

Gross yield (on GDV)
7.09%
Net yield (on GDV)
5.61%
ROI on cash left in
10.49%
Annual cashflow ÷ cash left in
Stress test @ 5.5%
Pass 145%
ICR (current): 172%

Deal summary

Deposit£37,500
Purchase loan£112,500
Stamp duty + legal + survey£10,000
Additional acquisition costs£995
Refurb cost£30,000
Holding costs (3 mo)£900
Purchase interest during refurb (3 mo)£1,688
Total cash in£81,083
Post-refurb valuation (GDV)£220,000
New loan @ 75% LTV£165,000
Less: original loan repaid− £112,500
Less: refi fees− £2,500
Cash released on refi£50,000
Cash left in deal£31,083
Break-even rent£1,028
Annual cashflow (IO)£3,261

Estimates only. Holding costs assume the purchase mortgage runs interest-only throughout the refurb. Stress test uses a 5.5% notional refi rate. Speak to a broker, accountant and solicitor before committing.