BTL · Property AnalysisA high-yield BRRR opportunity in Dovecot, Liverpool. Priced at £80,000, this property requires a full back-to-brick refurbishment to meet modern rental standards.
With an average weekly rent of £209 in the wider area, a target of £850 pcm for a fully refurbished 2-bed end-terrace is conservative and achievable. The Return on Capital Employed (ROCE) is calculated based on total capital invested including the £40,000 deposit and full refurbishment costs.
Cash flow is strong due to the low initial purchase price and the low interest rate environment (1%). Even with generous maintenance and management allocations, this asset acts as a high-performance income generator.
Liverpool continues to see strong capital growth. By modernising this dated property, we effectively force appreciation. Comparative data for renovated 2-3 bed properties in L14 suggests an After Refurbishment Value (ARV) of £130,000 - £140,000, creating significant equity headroom. Growth Score: 8/10.
The Dovecot area is popular with local workers and young families. Tenant demand is high for move-in-ready homes. Expect 2-3 viewings per week post-refurbishment. Void risk is low if finished to a neutral, modern standard.
BRRR: The primary strategy. Renovate to a high standard, refinance at the £135k+ valuation to recoup the majority of the initial capital, and keep the property as a cash-flowing BTL asset.
The property is significantly dated. A full "back-to-brick" renovation is required including rewiring, plumbing, new heating system, plastering, new kitchen, new bathroom, and flooring. Adding a bedroom is not recommended due to footprint constraints; focus on maximising the quality of the current 2-bed layout.
Low-to-Medium risk. The primary risk is cost overruns on the refurbishment. However, the low purchase price offers a massive safety buffer. No complex structural issues are apparent from the imagery.
Kitchen Units & Worktop - £2,200
Integrated Oven & Hob - £600
Bathroom Suite - £700
Shower & Screen - £300
LVT Flooring (Ground) - £1,200
Carpet & Underlay - £900
Radiators & TRVs - £800
Plasterboard & Skim - £1,500
Paint & Decor Materials - £500
Internal Doors (x5) - £600
Consumer Unit/Electrics - £1,000
Boiler & Pipework - £2,000
Skirting/Architrave - £400
Garden Fencing/Waste - £1,000
Misc Hardware/Fixings - £500
Strip Out & Demo - £1,500
Rewiring - £2,000
Plumbing & Heating Install - £2,000
Plastering (All rooms) - £3,500
Kitchen Fitting - £1,200
Bathroom Fitting - £1,500
Joinery (Doors/Skirting) - £1,000
Flooring Install - £800
Painting & Decoration - £2,500
Garden Tidy - £800
Gas/Electric Certification - £500
Final Snagging - £500
Project Management - £1,500
Rubbish Removal - £600
Final Clean - £300
Total Duration: 12 Weeks || 3 Months
Recommendation: Proceed. This is a classic "value-add" property investment. With an £80k acquisition price, you have excellent margin to absorb the £25k refurbishment cost. The resulting yield is exceptional in the current market. Your £40k down payment secures the purchase, and the refurbishment budget is accounted for. Ensure you conduct a full survey to rule out structural damp before exchanging contracts. Once complete, this will be a high-performing asset in your portfolio.