FLIP · Property AnalysisAnalysis of the 4-bedroom mid-terrace property at Phillip Street, Manselton, Swansea (SA1 5NF). The property is presented in good decorative order, suggesting a flip relies heavily on achieving premium pricing through cosmetic enhancement rather than structural remediation.
This investment presents a marginal flip opportunity due to the strong initial condition and moderate price point. The projected Total Investment Cost (TIC) is £236,175 against an ARV of £255,000, yielding a tight **ROI of 12.7%**. This return is insufficient to comfortably absorb unforeseen refurbishment delays or market softness. Proceed only if acquisition can be secured significantly below the asking price (£200k).
The subject property is a 1354 sq ft mid-terrace house in Manselton (SA1 5NF), a functional but dense residential area of Swansea. Current listings for similar 3-4 bedroom terraces in the wider SA1/SA5 areas cluster around the £180k to £240k mark for properties needing work or standard finishes. Given the existing modern fittings (kitchen/bathroom), the flip strategy centres on presentation refinement rather than fundamental upgrades. We estimate the resale value (ARV) achievable by presenting this property as a 'best-in-class' terrace for the immediate area. This targets the 75th percentile of potential sales achieved for refreshed properties in this bracket, setting the ARV conservatively at **£255,000**. This figure requires strong marketing to attract owner-occupiers willing to pay a premium for immediate move-in readiness. The value is added by standardising the aesthetic (replacing feature wallpaper with clean neutrals), professional presentation of the external areas (patio/shed), and ensuring all fittings feel brand new upon buyer inspection. The EPC score (C: 73) suggests moderate energy performance, and while potential exists (to B: 82), we do not factor in further energy works as part of this cosmetic flip scope.
Note: ROI calculation strictly adheres to the required formula: Gross Profit (£30,000) ÷ Total Investment Cost (£236,175) × 100.
The Welsh market around Swansea has shown resilience, but properties priced near £250k+ are generally more sensitive to interest rate changes than lower-value entry points. Our 5-month holding assumption factors in an approximate 3% market stability/slight growth, meaning if the sale extends beyond this, the thin profit margin will quickly turn negative.
The current listing is fresh ("Added today") at £200,000. The property appears well-maintained, suggesting the seller is likely testing the market or moving for non-distressed reasons (e.g., relocation, chain move). There are no explicit signals of urgent distress such as price drops or extreme condition requiring quick disposal. The opportunity lies in negotiating based on the required refurbishment outlay (£25,000) needed to achieve the premium ARV.
The risk level is high due to the extremely tight margins. A 12.7% ROI on a project of this scale (requiring 5 months holding) does not adequately compensate for transaction costs, market fluctuation, or renovation overruns. The existing good condition limits the value ceiling. If the ARV stalls at £240,000 instead of £255,000, the deal becomes unprofitable after all costs are accounted for.
| Characteristic | Assessment | Investment Risk Implication |
|---|---|---|
| Entry Price vs ARV | Low uplift potential (Approx 27.5% Gross Margin over PP) | Tight profit buffer against transaction costs. |
| Property Condition | Good (Cosmetic upgrade focus) | Risk of over-specifying refurb; low upside from basic refresh. |
| Property Type | Mid-Terrace, 3 Storeys | Standard but loft conversion complexity might hide structural surprises. |
| Tenure | Freehold | Low tenure risk. |
The property is already configured as a 4-bedroom house, utilising the loft space (Bedroom 1 on the Second Floor). Adding a 5th bedroom would require significant structural intervention, such as extending the loft space substantially (dormer) or building out the rear ground floor extension, which moves beyond a typical flip scope into heavy development.
Recommendation: Do not attempt. The cost and planning complexity will destroy the slim flip margin.
The probability of successfully negotiating down is high, provided we anchor the offer around the required investment needed to bring the property to the target ARV standard.
We observe signs of potential damp/wear on the lower sections of internal woodwork, specifically visible on the base of the door frame leading from the main hall into the reception area, suggesting possible maintenance neglect at floor level.
Refurbishment Type: Pragmatic/Cosmetic Refresh. Focus on high-impact, low-cost visual uplift suitable for rapid sale.
Confidence: High, based on provided floorplan data.
This flip opportunity on Phillip Street, Manselton, Swansea, requires a disciplined execution strategy due to extremely low projected returns. The Total Investment Cost (TIC) is calculated at £236,175, including an estimated £25,000 in pragmatic refurbishment costs and necessary holding expenses over a projected 5-month period. With a target ARV of £255,000, the resulting Gross Profit (£30,000) yields a final ROI of **12.7%**. In the context of property flipping, this margin is too thin; it offers virtually no protection against market volatility, unexpected repair expenditure (e.g., finding damp behind kitchen units or issues with the aging structure), or extended sale periods, which are likely given the current high asking price relative to local terrace comparables.
The property itself is structurally sound for a terrace, featuring four bedrooms and a modern ground floor layout. The refurbishment plan is correctly focused on neutralisation—removing the existing feature wallpapers (which risk dating the property quickly) and ensuring floors and fixtures present as brand new. The EPC score suggests that while energy efficiency is acceptable (C), no major capital injection is required here. We strongly advise against attempting to add a fifth bedroom, as this would require expensive, non-value-accretive structural extension work.
The primary pathway to making this viable is aggressive price negotiation. The current asking price of £200,000 leaves too little room for profit after costs. If the purchase price could be secured nearer £175,000 (requiring a £25,000 reduction based on immediate cosmetic needs and survey leverage), the ROI would significantly improve to approximately 19.5% (GP £30k / New TIC £153,175). Any exit strategy relying solely on achieving £255,000 from a £200,000 purchase price, alongside the high inherent costs of transacting property, renders this project high-risk and generally unworthy of a professional flip budget when compared to opportunities offering 20%+ net returns. Avoid unless the purchase price is substantially reduced.
Do not proceed at the asking price of £200,000. The projected ROI of **12.7%** is too low given the £236,175 total cost basis and risks associated with this price point in Manselton. Only execute the deal if the purchase price can be negotiated down by at least £20,000.