Maximize Profit: Convert One-Bedroom Flats into Two-Bedroom Properties

Have you ever thought about turning one-bedroom flats into two-bedroom Properties for profit? It might sound like a daunting task, but with the right strategy, it can be a lucrative venture. Let me take you through the step-by-step process using a template that has helped me build a multimillion-pound property portfolio.

Finding Potential Properties:

a black suv parked in front of a large building, Convert One-Bedroom Flats into Two-Bedroom Properties

First things first, you need to find suitable properties to work with. Head over to a property listing website like Rightmove and search for one-bedroom flats in an area you’re familiar with. For this demo, let’s say we’re looking in the Kennington area. Filter the search results to show only flats and sort them by price. Exclude new homes, retirement homes, and buying schemes to focus on traditional properties.

Assessing Property Criteria:

Now, open up the listings one by one and assess whether they meet the criteria for conversion. According to our template, a potential two-bedroom conversion must have a separate kitchen with a window, a living room of at least 15 square meters, and no inner rooms. Additionally, it should ideally not be part of a council estate.

Calling the Seller:

Once you find a promising property, it’s time to contact the seller or their agent. Ask questions to ensure there are no major issues with the property and verify key details such as availability, lease length, service charges, and potential value as a two-bedroom flat.

Initial Financial Analysis:

Using the deal analyzer built into the template, input key financial figures such as the asking price, estimated refurbishment costs, refurbishment duration, and projected rental income. Then, research comparable properties to estimate the final value of the renovated two-bedroom flat.

Final Assessment and Decision:

Based on the initial analysis, determine whether the property aligns with your investment goals. If the numbers make sense and the property meets all criteria, you can proceed to the next steps.

Under the “Years” filter, you want to select the last one year to view all the flats recently sold in the area. Now, you want to find all the two-bedroom flats sold in the area recently and use that data to determine the price of your own two-bedroom flat. Let’s begin by examining a two-bedroom flat that was recently sold for £479,569. If you scroll down, you can assess the general

condition of the property, which appears to be in decent shape. Additionally, it’s identified as an ex-Council property, as evident from the building itself. However, the floor plan doesn’t specify the size. To obtain this information, you can search the EPC register by clicking on “Search the EPC register” and entering the postcode. Once you’ve retrieved the data, you can see that the flat is 55 square meters in size and located on the ground floor.

Moving on to the comparables, let’s consider another two-bedroom flat sold for significantly less at £335,000. Despite being in a similar area and also ex-Council, this property is smaller at 52.2

square meters and appears to be in poorer condition. Considering these details, we can proceed with the assumption that the £479,569 sale is a more suitable comparable for our analysis, despite potential differences in lease terms.

Now, if we consider turning our one-bedroom flat into a two-bedroom, we should adjust the estimated value accordingly. Given the similarities to the £479,569 property, but with a slightly smaller size, we might estimate our flat to be worth around £445,000, assuming it’s in good condition.

Next, let’s explore rental comparables to estimate potential rental income for our two-bedroom flat. After adjusting for differences in condition and amenities, we find rental properties ranging from £2,000 to £2,300 per month. Considering our flat will be newly renovated and possibly smaller, we estimate a rental income of around £2,100 per month.

Updating the template with these figures, we estimate the property’s value to be around £445,000 and its rental income to be £2,100 per month. Subsequently, we adjust other parameters based on exact financing terms, refurbishment costs, and comparable sales to refine our analysis. Ultimately, we aim for a deal that aligns with our investment criteria, whether it’s a target profit margin or return on investment.

Once we’ve completed the initial analysis and confirmed the property’s potential, we proceed with booking a viewing and conducting a detailed analysis. This involves obtaining exact quotes for refurbishment and financing, as well as validating the comparables to ensure accuracy in our projections.

If the property meets our criteria, we proceed with making an offer and negotiating with the seller. Using the AI-powered email templates, we communicate effectively with builders, solicitors, and agents to facilitate the transaction. Finally, we continue to refine our offer based on negotiation outcomes until we secure the property at a price that meets our investment goals.

follow these steps to create a property investing template and turn one-bedroom flats into profitable two-bedroom flats:

Find Potential Properties:

Begin by searching for one-bedroom flats in an area you’re familiar with, preferably on property listing websites like Rightmove. For instance, let’s say you’re searching in Borough Station. Filter your search for one-bedroom flats and flats in general. Sort the results by price, excluding new homes, retirement homes, and buying schemes.

Evaluate Property Criteria:

Review the properties to determine if they meet the criteria for conversion into two-bedroom flats. Criteria may include having a separate kitchen with a window, sufficient room sizes, absence of inner rooms, and compliance with building regulations.

Assess Property Suitability:

Analyze each property against the conversion criteria. If a property meets the necessary criteria, proceed to further evaluation. If not, mark it as unsuitable and move on to the next potential property.

Contact Property Sellers:

Reach out to the sellers or agents representing the properties to gather additional information. Ask questions to clarify details such as availability, lease length, service charges, expected refurbishment costs, and potential rental income.

Conduct Initial Analysis:

Use a deal analyzer tool to assess the financial viability of each potential property. Input key financial figures such as the asking price, estimated refurbishment costs, refurbishment duration, anticipated rental income, and projected final value after conversion.

Compare Property Values:

Research comparable properties in the area to estimate the potential post-conversion value of the property. Consider factors such as size, condition, amenities, and recent sale prices of similar two-bedroom flats nearby.

Review Rent Comparables:

Evaluate rental comparables to estimate the potential rental income of the converted property. Look for similar two-bedroom flats in the vicinity and analyze their rental rates to gauge the achievable rental income.

Make Informed Decisions:

Based on the gathered information, make informed decisions about whether to proceed with purchasing and converting the property. Consider factors such as potential profitability, renovation costs, market demand, and your investment goals.

Track Property Progress:

Keep track of each property’s status within the investment pipeline. Categorize properties as viable prospects, failed deals, or ongoing negotiations to streamline your investment decision-making process.

Continuously Refine Strategy:

Refine your property investing strategy based on your experiences and learnings from each deal. Adapt your criteria, analysis methods, and negotiation tactics to optimize your investment outcomes and build a successful property portfolio.

By following this step-by-step template and leveraging thorough research, strategic analysis, and effective negotiation, you can replicate the process that helped you build a successful property portfolio worth millions.


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