A full breakdown of a real project from our portfolio, including every cost, the actual timeline, a challenge we encountered midway through, and the return delivered to our investor.
Capital Invested
£47,000
Fixed-term, asset-secured
Net ROI
14.2%
Annualised return
Project Duration
11 mo
2 months over original plan
Investor Return
£6,700
Paid in full at completion
A full refurbishment of a tired 4-bedroom terraced property acquired below market value in a strong HMO demand corridor near a major hospital and business district.
We are sharing the complete picture here, including a delay and cost overrun midway through. We do this because we believe investors deserve to see how a project actually unfolds, not just a version that makes everything look straightforward.
This is a standard investor report. Every project we deliver comes with the same level of transparency.
Every pound spent on this project is listed below. Projected versus actual figures are shown side by side so you can see exactly where we were on plan and where we were not.
| Cost Item | Projected | Actual | Variance |
|---|---|---|---|
| Acquisition Price | £128,000 | £128,000 | On plan |
| Refurbishment Works | £34,500 | £37,200 | +£2,700 |
| Planning and Licensing | £1,800 | £1,800 | On plan |
| Finance and Holding Costs | £5,200 | £6,100 | +£900 |
| Management and Legal Fees | £2,400 | £2,400 | On plan |
| Contingency Budgeted | £6,500 | £3,600 used | £2,900 returned |
| Total Project Cost | £178,400 | £179,100 | |
The refurbishment overrun was caused by undiscovered damp in one bedroom, identified during first-fix. The investor was notified within 48 hours. The additional cost was absorbed within the contingency and did not affect the investor's return.
The original programme was 9 months. The project completed in 11. Here is exactly what happened and why.
Month 1
Property acquired at auction. HMO licence application submitted. Refurbishment contractor appointed following a competitive tender process.
Months 2 to 4
Full rewire, new plumbing and structural partition works completed. Investor received progress photographs at the end of each month.
On scheduleMonth 5
Damp discovered in Bedroom 3. Investor notified within 48 hours. Remediation quote obtained and approved within one week. Cost absorbed within contingency.
+£2,700. Within contingency.Months 6 to 8
Kitchens, bathrooms, flooring and decoration completed to specification. Damp remediation added approximately 6 weeks to the programme.
Months 9 to 10
HMO licence granted on first application. All 4 rooms tenanted within 3 weeks of completion. Full occupancy achieved before Month 11.
Full occupancy achievedMonth 11
Full capital returned plus agreed return, paid on schedule. Despite a 2-month overrun, investor return was fully protected within the project structure.
£53,700 returned to investorThese are the actual figures delivered to the investor on this project.
Capital Invested
£47,000
Fixed-term, secured against the property throughout the project.
Net Annualised ROI
14.2%
Delivered over the 11-month project term.
Investor Profit
£6,700
Total return paid at completion, on top of full capital returned.
Comparison figures are approximate market averages shown for context only. Past performance does not guarantee future results. Property investment carries risk and returns are not guaranteed.
Every project teaches us something. These are the four things this one reinforced.
The damp issue would have caused serious problems without a properly budgeted contingency. We always budget 15 to 20% above our refurbishment estimate, and this project is a clear example of why that discipline matters.
Our investor heard about the issue within 48 hours of discovery. That speed of communication is a commitment, not a courtesy. Investors should never find out about problems secondhand or after the fact.
Having referencing and marketing in place before completion meant full occupancy in under three weeks. Void periods cost money, and reducing them requires preparation, not luck.
Despite a 2-month overrun, the investor's return was not affected. That is by design. The legal and financial structure should protect you when things do not go exactly to plan.
Every investor we work with receives a written update at each project milestone, full access to actual versus projected costs, and honest communication the moment anything changes. This case study is not a marketing piece. It is an example of a standard investor report.
Practical, honest guidance for property investors, delivered free to your inbox by Aidan and Avril Magee at Busk Properties.