Example Property Figures

3 bed Property in Redcar, North East
Purchase Price £100k (£25k deposit, £75K mortgage)
Capital Employed £40k (Stamp £3k, legals £2k, Refurb £10k, deposit £25k))
Rent £575pcm, £6900 pa – Net Profit £325pcm, £3900 pa
ROCE (Return on capital employed) – 10% – ROCE or ROI (return on investment) measures how hard your investment in property is working for you (ROCE for a UK savings account is 1.75%)
Market Value £145K – Refinanced after 2 years – £35K pulled back out of the property to reinvest (£5k money left in creating a ROCE of 78% for future rental profits)
Infinite returns after 18 months!