FLIP · Property AnalysisThis report provides a comprehensive analysis of the property at 1 Alandale, Goddard Avenue, Hull, HU5 2BJ, focusing on its flip potential. The analysis includes market valuation, refurbishment strategies, risk assessment, and financial projections for a quick turnaround investment.
This 2-bedroom end-terrace property presents a moderate flip opportunity. With a £100,000 purchase price and an estimated £10,000 refurbishment cost, the target ARV is £135,000. This yields a projected net profit of £15,506 and an ROI of 13.4% over an estimated 6-month hold period. While achievable, the margins are not substantial, indicating a medium-high risk profile for this strategy.
The property is a 2-bedroom end-terrace house located in a popular HU5 area of Hull, close to local amenities. It offers two reception rooms (living room and separate dining room) and a standard kitchen and bathroom. The property requires a cosmetic refurbishment to enhance its market appeal for resale.
The target resale value (ARV) is estimated at £135,000. This is based on a comprehensive cosmetic refresh including updated kitchen and bathroom finishes, redecoration throughout, new flooring, and improved curb appeal. Such enhancements are standard for increasing appeal in this property type and price bracket. Analysis of comparable sold properties in the HU5 area suggests that well-presented 2-bedroom terraces with modern finishes can achieve prices in the £125,000 to £145,000 range. Our ARV of £135,000 represents a realistic midpoint, achievable with a quality, yet cost-effective, refurbishment. The strategy focuses on mass appeal rather than high-end luxury, aligning with the property's likely buyer demographic, which includes first-time buyers and potential investors looking for a ready-to-rent or live-in property. This ARV is justified by the demand for affordable, updated homes in well-connected areas.
ROI Calculation: Net Profit (£15,506) ÷ Total Investment Cost (£115,669) × 100. Assumes a 6-month holding period with a 6% annual interest rate.
Hull's property market is generally more affordable compared to national averages. Recent trends show steady, albeit modest, price growth for terraced properties in desirable postcodes like HU5. For a flip strategy, relying on significant market appreciation over a short period (6 months) is risky. The profit is primarily driven by the value added through refurbishment rather than market uplift.
The property is listed as "Offers over £100,000". The "Added On" field indicates a reduction date of 26/09/2025, suggesting the price may have been adjusted, which can signal seller motivation. Combined with the fact it's a standard 2-bed terrace, there's a good probability of negotiating the price down further.
This investment carries a medium-high risk profile. While the refurbishment is cosmetic and the ARV appears achievable, the profit margin is not exceptionally wide, leaving limited buffer for unforeseen costs or market shifts. A key risk is the reliance on achieving the target ARV and selling within the projected timeframe.
Medium-High Risk (70/100).
The ROI, while positive, is not substantial enough to absorb significant cost overruns or extended selling periods without impacting profitability. The market for 2-bed terraces can be competitive, and achieving the ARV hinges on attracting the right buyer quickly.
The property features a separate dining room on the ground floor. Converting this into a third bedroom is a viable option to potentially increase the ARV.
Converting the dining room into a bedroom could raise the ARV to approximately £150,000. However, this sacrifices a reception room, which may not appeal to all buyers. The cost is estimated at £3,000 for partitioning, doors, and basic decoration. Given the trade-off, it's a strategic decision that needs careful market consideration.
Recommendation: This is a viable option to explore if the primary flip strategy shows limited profit potential or if market analysis strongly suggests a 3-bed commands a significantly higher premium. It increases the overall risk but also the potential reward.
Leverage the following points to negotiate the purchase price down:
| Negotiation Point | Price Down Potential | Probability |
|---|---|---|
| "Offers over £100,000" pricing | £2,000 - £5,000 | 80% |
| Indicative price reduction (as per 'added on' date) | £2,000 - £5,000 | 75% |
| Requirement for cosmetic refurbishment | £3,000 - £7,000 | 90% |
| Property is 2-bed (vs. 3-bed) | £1,000 - £3,000 | 60% |
| No immediate structural issues visible, but require survey | £1,000 - £2,000 | 50% |
Damp Check: No definitive signs of significant damp were observed in the provided images. Some minor discolouration was noted on kitchen wall tiles near the extractor fan and window, which could be indicative of poor ventilation or age-related grime rather than active damp. External brickwork showed typical signs of weathering.
The proposed refurbishment focuses on a pragmatic, mid-range cosmetic upgrade to maximise appeal and value within budget.
Estimated based on floorplan dimensions, assuming inclusion of hallways, landing, and stairs (factor of 1.25 on sum of room areas).
Proceed with caution. This property offers a moderate flip opportunity with a projected ROI of 13.4%. While achievable, margins are tight, demanding efficient execution and cost control. Consider the potential to convert the dining room into a third bedroom for higher returns, but weigh this against increased risk and cost.
The property at 1 Alandale, Goddard Avenue, Hull, presents a standard flip proposition. The £100,000 purchase price, combined with a £10,000 cosmetic refurbishment budget, aims for an ARV of £135,000. This strategy yields a net profit of £15,506 and a 13.4% ROI over an estimated 6-month period. Key influencing factors are the tight profit margins, necessitating strict adherence to the budget and timeline, and the successful achievement of the ARV. The risk level is assessed as medium-high (70/100) due to these factors.
Negotiation is advised, leveraging the "Offers over" pricing, potential previous price reduction, and the need for refurbishment. The probability of negotiating the price down is high (85%).
An additional bedroom could be created by converting the dining room, potentially increasing the ARV to £150,000 and the ROI to approximately 19.4%. However, this strategy increases costs, hold time, and risk, and sacrifices a reception room. It is recommended only if the primary strategy proves insufficient or a thorough market analysis supports the demand for a 3-bed configuration.
Given the moderate returns and associated risks, this flip is suitable for investors comfortable with calculated risks and efficient project management. Thorough due diligence and a robust project plan are essential for success.