FLIP · Property AnalysisThis report provides a comprehensive analysis of the property at The Crescent, Hull, North Humberside HU3, focusing on its flip potential. The analysis includes market valuation, refurbishment strategies, risk assessment, and financial projections.
This 4-bed terraced house in Hull presents a viable flip opportunity with a targeted refurbishment. The £140,000 asking price (subject to negotiation) allows for a ~£20,000 cosmetic upgrade to achieve an After Repair Value (ARV) of £190,000. This yields a projected gross profit of £19,875, resulting in an ROI of 11.7%. While manageable, risks include purchase price negotiation, refurbishment cost control, and market conditions at sale. Overall, this is a medium-risk, medium-reward flip candidate.
The property is a 4-bedroom end-terraced house located in Hull, HU3. It benefits from a practical layout and is situated in an area with good local amenities, including proximity to West Park and Hull Royal Infirmary, suggesting consistent demand.
The property at The Crescent, Hull, HU3 is a 4-bedroom terraced house with an internal area of approximately 1192 sqft. Its current asking price is £140,000, but the agent indicates 'offers in excess of' this figure. Post-refurbishment, the property is projected to achieve an After Repair Value (ARV) of £190,000. This uplift is driven by a targeted refurbishment programme costing an estimated £20,000. The scope includes a refreshed kitchen (£5,000), updated bathrooms (£4,000), comprehensive redecoration (£3,500), new flooring (£2,500), enhanced curb appeal (£1,500), modern lighting (£1,000), and general snagging/repairs (£1,500). These improvements will modernise the property's appeal, making it attractive to a broader range of buyers. The strategy focuses on cosmetic upgrades rather than structural changes, ensuring cost-effectiveness and faster turnaround, which is crucial for a flip. The ARV is justified by comparable modernised 4-bedroom terraced properties in similar Hull postcodes, which achieve prices in the £180,000-£210,000 range. This valuation assumes a well-presented finish that meets current market expectations.
ROI Calculation: (Gross Profit ÷ Total Investment Cost) × 100
Hull's property market has shown resilience, with terraced houses in areas like HU3 typically experiencing steady, modest price appreciation. Over the past five years, similar properties have seen growth generally aligning with or slightly exceeding the regional average. Current economic conditions suggest continued stable growth, with potential for 3-5% appreciation in the short to medium term, supported by local employment hubs such as Hull Royal Infirmary and good transport links. This stability underpins the ARV projection, assuming standard market conditions prevail upon sale.
The agent's description highlights a "Premium Fast Sale Plus" method, indicating the seller is looking for a swift transaction. The property is advertised with "offers in excess of" the £140,000 price point, suggesting flexibility but also a potential for higher negotiation. While not explicitly a distressed sale, the seller's preference for speed can be leveraged for price negotiation. The property's condition is described as functional with scope for cosmetic improvement, rather than critically rundown, meaning the opportunity lies in value-adding refurbishment rather than essential structural repairs.
The risk level is assessed as Medium-High. This is primarily due to the "offers in excess of" pricing strategy, which introduces uncertainty regarding the final purchase price and could compress profit margins. The ARV projection relies on the successful implementation of cosmetic refurbishments and market conditions at the point of sale. Cost overruns or extended selling times are also key risks.
The risk is elevated due to the "offers in excess of" pricing strategy, which may lead to a higher purchase price than anticipated, reducing profit margins. Accuracy of ARV relies heavily on comparable sales data which isn't fully detailed. Refurbishment cost control and a quick sale are critical. The ROI of ~11.7% offers some buffer but is not exceptionally high for a flip, increasing sensitivity to market fluctuations or unexpected expenses.
Adding a fifth bedroom to this 4-bed terraced property is not recommended for a flip strategy. The current layout is typical for a terraced house, and creating a new bedroom would likely involve significant structural alterations, such as extending into the garden or reconfiguring existing rooms. The cost and complexity associated with such changes would greatly exceed the potential value uplift for this property type in this location.
Recommendation: Attempting to add a fifth bedroom is not advised due to high costs, complexity, planning considerations, and uncertain ROI.
Evidence of potential issues: Minor wall imperfections and slight discolouration visible on walls in some interior shots (e.g., bedrooms) may indicate past or minor current damp. These require further inspection but can be used as negotiation points to reflect the cost of necessary remedial work and inspections.
The refurbishment will focus on essential cosmetic upgrades to enhance marketability and achieve the target ARV. The approach is pragmatic and cost-effective, prioritising high-impact areas.
Type of Refurbishment: Pragmatic / Mid-Range Cosmetic Upgrade.
Proceed with caution. This 4-bed terraced house offers a viable flip with an estimated 11.7% ROI. Focus on aggressive price negotiation and efficient refurbishment to maximise profit. Thoroughly assess ARV and potential issues during survey.
The property at The Crescent, Hull, HU3 presents a sound, albeit moderate-risk, flip opportunity. With a target purchase price of £140,000 and an estimated refurbishment cost of £20,000, the projected After Repair Value (ARV) is £190,000. This yields a total investment of approximately £170,125 and a gross profit of £19,875, equating to an ROI of 11.7%. The refurbishment plan prioritises cosmetic enhancements like kitchen and bathroom updates, redecoration, and flooring to improve market appeal without incurring excessive costs or delays. The seller's preference for a swift sale, indicated by their marketing strategy, presents a key opportunity for price negotiation. However, investors must be prepared for the possibility of the final purchase price exceeding the £140,000 guide, given the 'offers in excess of' approach. Thorough due diligence, including a detailed survey to identify any hidden issues such as potential damp or structural concerns, is paramount. The ARV of £190,000 is deemed achievable based on comparable modernised properties in the HU3 area. Careful management of refurbishment costs and a realistic sales timeline will be critical for success. While not a high-return, low-risk proposition, this flip offers a solid return if executed strategically and diligently.