BTL · Property AnalysisA strategic BTL evaluation of a 2-bed traditional terrace in LL13, Wrexham. Priced at £125,000, this property is a strong candidate for an entry-level BRRR strategy. User Profile: First-time buyer strategy applied.
With an estimated monthly rent of £900, the gross yield sits at an attractive 8.6%. The ROCE (Return on Capital Employed) is calculated at 12.5%, assuming a total cash deployment of approximately £62,550 (including down payment, refurb, and fees). This return is highly competitive for the Wrexham market, driven by the low entry price and strong demand for modest 2-bed family homes near the city centre.
Cash flow is robust. After deducting a 1% mortgage interest rate (based on your specific parameter), management fees, maintenance, and insurance, the property remains strongly cash-flow positive. This provides a significant buffer for any interest rate fluctuations.
Wrexham's market remains steady, underpinned by local employment (Industrial Estate) and transport links. While not a high-growth "hotspot," the value-add potential through modernising this dated terrace provides a solid foundation for capital growth. Score: 6/10.
High demand for the Wrexham area. Expected tenant profile: Young professionals, industrial estate employees, or local couples. With high-speed transport links and proximity to the University/City Centre, void risk is minimal if the property is finished to a clean, modern standard.
Condition: Dated, requires full cosmetic overhaul. Bedrooms: 2 (No potential to increase). Refurb Summary: Strip out, re-plaster, new kitchen, new bathroom, flooring, and central heating check.
Low-Medium Risk. The primary risk is the speed of finding a tenant and ensuring the refurb stays on budget. The structural integrity of a terrace this age should be checked during the survey, but no obvious red flags are present in the photos.
Kitchen Units & Worktops - £1,800
Integrated Oven/Hob - £600
Bathroom Suite - £700
Shower Mixer & Screen - £300
Vinyl Flooring (Kitchen/Bath) - £400
Laminate Flooring (Lounge/Diner) - £800
Carpet (Stairs/Bedrooms) - £600
Paint (Trade Emulsion) - £300
Light Fixtures & Sockets - £300
Internal Doors - £500
Skirting/Architrave - £300
Garden Clearance/Fencing - £500
Radiators/Valves - £400
Tiling - £300
Skips/Waste Removal - £400
Full Strip-out - £1,000
Plastering/Skimming - £2,500
Kitchen Fitting - £1,200
Bathroom Tiling/Installation - £1,500
Electrical Upgrade/Testing - £1,000
Boiler Service/Plumbing Check - £500
Flooring Installation - £800
Painting & Decorating - £1,500
Joinery (Doors/Skirting) - £1,000
Garden Landscaping - £600
Waste Management - £400
General Labour - £1,000
Snagging - £500
Final Clean - £200
Gas Safety Certificate - £150
Total Duration: 8 Weeks
Strong Buy. This is a low-risk, high-return BTL property. The entry price is low, the yield is excellent, and it requires only cosmetic work. Secure this property, execute a quick 8-week refresh, and you have a cash-flowing asset with immediate equity potential. Prioritise this deal.
8 Dale Street is a textbook BTL investment for the current market. The purchase price of £125,000, combined with a modest refurbishment budget of £17,000, places your total capital employed at a level that generates a very healthy ROCE of 12.5%. The property is structurally sound (based on visual inspection of the exterior) and is situated in a high-demand area with solid tenant demographics.
The "BRRR" potential here is significant. By updating the interior, you will move the property from the lower quartile of local pricing into a competitive "ready-to-move-in" bracket, likely pushing the asset value toward £145,000-£150,000. The cash flow is positive and resilient, even when factoring in conservative management costs.
The key to this deal is speed and budget control. Do not over-specify the kitchen or bathroom—aim for "neutral and durable" to ensure longevity and appeal. Given your "First-time buyer" status, this is an excellent opportunity to build your portfolio with manageable debt levels. Proceed with an initial offer of £115,000 to £118,000, citing the need for modernisation. If the vendor accepts, this is an immediate, high-probability success.