R2R costs. Does anybody pay an proper money for refurbishment on their R2R deals? I have 5 on the table at the moment that all cashflow quite well - 4 will be done I think as a staggered JV with the owner, as they all require about £15-£20k each, so a profit split is more appropriate. One however is in modern condition and will take around £12k (about £8500 (inc hefty contingency) and £3500 for furniture). Is this a reasonable amount? Year one is a £4k loss, year 2 is a £3k profit, year 3 - 5 is around £9k profit each. Reasonably conservative too - may get higher rents in years 3, 4 and 5. This includes management fees and other services costs etc.
Posted on: Tue, 14 Oct 2014 11:10:37 +0000
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